Tax Question

CinnamonGirl_2

I've just launched a new business (I work part-time, 0.4 PAYE, and the plan is to grow the business so it can eventually be my full time employment) and have been trying to get my head around tax. I've read the HMRC stuff but am still confused

I'd appreciate any help and advice with the following.

1) I know I can claim back a proportion of my mortgage interest, utilities etc against tax but I'm not sure how to work it out. I have two bedrooms and one reception room, so is that 1/3 of the house? And as I have a 0.4 job, do base the figure on 0.6, even if I do work for the business on weekends?

2) I have a really old, really useless mobile phone that keeps dying on me. So I know I need a new one to be able to operate a business. Can I claim for the cost of a new smartphone (iPhone or similar) back against tax? Or a proportion of it? And if it's a proportion, how do I work out how much? I did see I could claim for business calls but how does that work if you pay a monthly amount to the phone company and ALL your calls/ texts/ data come from that? How do I work that out?

Any advice/ help or links to where I can find the above out would be VERY much appreciated. I seem to be incapable of answering these questions via my own research. Though, to be fair, I do struggle with figures (it's the one area of weakness of my business brain )

Thank you!

Wywth

CinnamonGirl wrote: »

I've just launched a new business (I work part-time, 0.4 PAYE, and the plan is to grow the business so it can eventually be my full time employment) and have been trying to get my head around tax. I've read the HMRC stuff but am still confused

I'd appreciate any help and advice with the following.

1) I know I can claim back a proportion of my mortgage interest, utilities etc against tax but I'm not sure how to work it out. I have two bedrooms and one reception room, so is that 1/3 of the house? And as I have a 0.4 job, do base the figure on 0.6, even if I do work for the business on weekends?

2) I have a really old, really useless mobile phone that keeps dying on me. So I know I need a new one to be able to operate a business. Can I claim for the cost of a new smartphone (iPhone or similar) back against tax? Or a proportion of it? And if it's a proportion, how do I work out how much? I did see I could claim for business calls but how does that work if you pay a monthly amount to the phone company and ALL your calls/ texts/ data come from that? How do I work that out?

Any advice/ help or links to where I can find the above out would be VERY much appreciated. I seem to be incapable of answering these questions via my own research. Though, to be fair, I do struggle with figures (it's the one area of weakness of my business brain )

Thank you!

I would suggest you see an accountant. At least their fees would be recoverable against tax
(and they will probably save you more than they cost you anyway)

CinnamonGirl_2

Ok, thank you.

I didn't think it'd be relevant to see them at this stage as I have literally just launched so have not really had any income yet and don't have any accounts.

Pennywise

CinnamonGirl wrote: »

Ok, thank you.

I didn't think it'd be relevant to see them at this stage as I have literally just launched so have not really had any income yet and don't have any accounts.

Now IS the time to sort out an accountant. They'll give you advice as to what expenses you can claim, how to keep your book-keeping, advice about when to incorporate, what year end to choose, etc.

Preparing the year end accounts and tax return is only part of a good accountant's remit. You'll never get the best out of them and you may end up paying more for less, if you regard it as a once-a-year thing to look at the history. They may have to spend a few hours longer (at your cost), if your book-keeping isn't up to standard or done in the manner they want.

A good accountant is worth their weight in gold and can easily save you more than their costs if they're working with you in advance on tax planning, business development, etc.

Once the year end has passed, opportunities have been lost.

CinnamonGirl_2

Thank you for that, Pennywise.

Do you have any tips for how to find a good accountant? And what sort of fees should I expect?