self employed - what expenses can be used???

Cook_County

dunstonh wrote: »

I thought clothing could only be claimed if it was protective clothing. Suits, for example, cannot.

That's probably why you don't give tax advice

See my post of 25/2/07 here:

http://forums.moneysavingexpert.com/showthread.html?t=383229&highlight=Mallalieu

adypem

disciple wrote: »

I am an IT Consultant and have recently set up my own limited company can anyone point my in the direction of a professional accountant or guide me in the correct direction? Any advice on Professional Indemnity insurance would help as well please

Many thanks in advance.

I use a local accountant near where I live, so I can't give advice with that.

A few I have seen mentioned a lot are

http://www.sjdaccountancy.com/
and
http://www.uptonaccountants.com/

Regarding insurance I have also got quotes from the following :

https://www.caunceohara.co.uk/
and
http://www.dallaskirkland.co.uk/

I hope this helps.

Hoddie_2

Cook_County wrote: »

That's probably why you don't give tax advice

See my post of 25/2/07 here:

http://forums.moneysavingexpert.com/showthread.html?t=383229&highlight=Mallalieu

To be fair Cook_County, ask HMRC and they will tell you the same! Even the new 2006/07 SA return says as much.

TITEASCRAMP

Do you know if you can claim for training courses?

temba

my accountant says that I need to only wear the clothes I can claim for in work (In my case: on stage) if I buy, say, a pair of shoes to wear mostly for work and occasionally in the pub then I can't claim even a percentage of the expense. In my case it's very easy to distinguish my work clothes from my normal clothes, but i think in most cases it's a very GREY area. In my experience, everyone else's accountant always lets them get away with more than your own accountant!!!

Bean_Counter

Cook_County wrote: »

That's probably why you don't give tax advice

See my post of 25/2/07 here:

http://forums.moneysavingexpert.com/showthread.html?t=383229&highlight=Mallalieu

I read through your thread, and BIM47815 is fair enough.

However concerning the duality of clothing, I had to agree with dunstonh. I read bim37910 at

http://www.hmrc.gov.uk/manuals/bimmanual/BIM37910.htm

and still think everyday clothing in not deductible.

Cook_County

There is rather helpful discussion here from TaxAid on s34(2) ITTOIA 2005.

http://www.taxaid.org.uk/uploadedfiles/document/1_186_Homeworking_for_Employees_(pdf_file).pdf

As I mentioned previously, the law has changed so that now all one needs is "any identifiable part or identifiable proportion". I suspect that we will have to wait for the meaning of this phrase to be tested before the Courts so that we can find out what it actually means!

This is what "Tolleys Practical Tax Newsletter had to say on 30 March 2007:
Business Income Manual
HMRC Monitor will focus on the more significant changes concerning direct taxes. Recent changes to the Business Income Manual (BIM) will be of interest to many practitioners. They include:

● a new chapter at BIM 74200 on revenue recognition, service contracts and the changes required by Urgent Issues Task Force Abstract 40 (UITF 40), explaining how the one-off tax adjustment arising from any change of accounting policy is spread under FA 2006, Sch 15; and
● a new chapter at BIM 47800 setting out the expenses that are allowable when a self-employed person uses part of his or her home for business purposes. The guidance points out that where an expense is incurred for more than one purpose, the 'wholly and exclusively' rule in ITTOIA 2005, s 34(1) does not preclude a deduction in respect of an 'identifiable part or identifiable proportion' of the expense that is incurred wholly and exclusively for the purposes of the trade — see s 34(2)).
HMRC say the factors to be taken into account when apportioning an expense include one or more of the following, depending on their relative importance:

● Area: what proportion in terms of area of the home is used for business purposes?
● Usage: how much is consumed? This is appropriate where there is a metered or measurable supply such as electricity, gas or water.
● Time: how long is it used for business purposes, as compared to any other use?
There is detailed guidance on particular expenses, together with a number of examples. HMRC staff are advised that they can accept a reasonable estimate 'without detailed enquiry' if there is only minor use, such as writing up the business records at home.

dunstonh

Mallalieu v Drummond found that you could not claim for clothing as I mentioned higher up.

http://www.taxation.co.uk/Articles/2004/04/15/40668/Suits+you+Madam.htm

TITEASCRAMP

Does anyone know if you cn claim for training courses

WHA

dunstonh wrote: »

Mallalieu v Drummond found that you could not claim for clothing as I mentioned higher up.

http://www.taxation.co.uk/Articles/2004/04/15/40668/Suits+you+Madam.htm

The Mallalieu case is over 20 years old, the new rules referred to by Cook_County are very recent, just a few months, and he has quite rightly pointed out that the new rules have yet to be tested in the courts, therefore, there is every chance that the Mallalieu decision which was based wholly on the old (and now apparently obsolete) notion of duality of purpose preventing any claim will be overturned. More recent rules/laws will always take precedence over older ones.