How much can I offset....

mandi

:T Hi ,

just wanted some advice please..

I recently set up my own business.and not sure what i can offset aginst the dreaded" Taxman " ...:eek:

Not that I want to cheat.....Any advice would be most helpful



Thanks...




Mandi ..

nemo183

More than you think.

Make sure you keep any bill you paid before setting up the company that was in connection with setting up the company.

Spend an hour with an accountant so you can establish the boundaries of what is possible.

I bad mistake to make is to reclaim VAT (assuming you are VAT registered) on an item that should not have been claimed as a company expense. The Inland Revenue won't catch you, but the VAT man will......

Bean_Counter

Hi Mandi,

I agree with nemo183, you should be able to offset quite a lot. The general principle is that anything that is "wholly & exclusively" for business use can be claimed as a deductible expense.

Try this HMRC leaflet, which will hopefully be of some use:

http://www.hmrc.gov.uk/startingup/working-for-yourself.pdf

If you want to post what you are going to be doing, I could give some more specific advice.

Have you notified HMRC that you have setup? You need to notify them within three months of starting up to avoid a £100 penalty. You also need to sign up for class 2 national insurance contributions.

Try the business link website as well:

https://www.businesslink.gov.uk

You also need to consider health & safety legislation etc. If you are going to be employing people, then there is a whole raft of employment related legislation too.

Obviously setting up by yourself is a big step. I've no experience of that myself, but make sure you get some good advice from a number of different sources. Same applies on financial matters.

Let me know if you need more help.

Good luck.