07/08 tax return and early planning - help?

martin82scott

hi all,im a new member and this is my first post but here goes....

well infact i have several questions to ask and would really really appreciate any hints, tips and answers!!! thanks in advance to all!!

im a sole trader in my 2nd year of trading and may have missed a few tricks on my 06/07 return...bummer, may have lost out!

Q1) can i claim for anything i missed in 06/07 on my 07/08 if i still have reciepts/proof etc?

Q2) which should i claim...fuel reciepts or milage/both? on my personal car used solely for business? (i only claimed for fuel reciepts last year and told i should claim 40p per mile) can i do both?

Q3) what else can i claim against my vehicle? also can i claim for its purchase without proof of purchase somehow? (private cash buy)

Q4)can i claim allowences (% of utility costs/wear & tear of appliances) at home which contribute to business....phone calls,internet access and washing workwear.

Q5) is it just vat i will recieve on reciepts? think i had a rouge doing my 06/07 return. they couldnt tell me how they derived figures!

Q6)can anyone provide any links to sites for me so i dont have to bore you all!!! i cant find anything worth writing home about!!!

CHEERS GUYS AND GALS!!!!

Murdina

Just a quick reply. You can amend your 2007 return at any time up to 31/1/09.
So see what others say on all the other points and then write to HMRC setting out the boxes you want to amend.
Make sure you are keeping (and retain) proper records to back up all your claims.

jimmo

Q1, amend your 06/07 Return as suggested by Murdina.
Q2. 40 ppm seems to work for most.
Q3. If you claim 40 ppm there is absolutely nothing else.
Q4. If you use one room of your house exclusively for business then you can claim. Otherwise claim £2.00 pw.
Q5. Sorry, don’t understand the question. I think I know a lot about Income Tax. I know I know nothing about VAT.
Q6 Regrettably no.

3plus1

I'm not sure I understand Q5. Are you VAT registered or not? VAT is dealt with separately in any case, on a different form.

If you are not VAT registered, your tax treatment is based on the total cost of something, including VAT. If you are VAT registered, you should deduct all VAT before applying the correct tax treatment, and deal with VAT on a separate VAT return form.

martin82scott

thanks all so far! you have all been a great help!

so with regards to not havin reciepts for some items i have bought (vehicle & sat nav etc), is there anything i can do to claim towards these?they are obviously a definate must have for me (electrician) and use them everyday but have bought them privatly for cash.whilst on the subject, although i would only attempt to claim for genuinly purchased goods that contribute towards my business,can anyone point out anything else that they claim towards that may affect me, no matter how small? (anything that affects running my business as a sole trader) it would be most appreciated and as i mentioned earlier, i think i had a 'back street dealer' dealing with my 06/07 return. i have heard of people fleecing the taxman for cars and they dont even have a liscences and also been told that you are entitled to £6 a day parking expenses without proof of reciepts? madness and probably not worth the investigation!

before i go,just one last thing....i have been led to believe that as CIS tax has risen from 18% to 20%, i will be able to claim back the 2% difference so long as i have not reached a certain thresh hold of earnings (not sure on the amount?) please can anyone enlighten me?

thanks again to all for your precious time!!

kindest regards, martin.

martin82scott

thanks all so far! you have all been a great help!

so with regards to not havin reciepts for some items i have bought (vehicle & sat nav etc), is there anything i can do to claim towards these?they are obviously a definate must have for me (electrician) and use them everyday but have bought them privatly for cash.whilst on the subject, although i would only attempt to claim for genuinly purchased goods that contribute towards my business,can anyone point out anything else that they claim towards that may affect me, no matter how small? (anything that affects running my business as a sole trader) it would be most appreciated and as i mentioned earlier, i think i had a 'back street dealer' dealing with my 06/07 return. i have heard of people fleecing the taxman for cars and they dont even have a liscences and also been told that you are entitled to £6 a day parking expenses without proof of reciepts? madness and probably not worth the investigation!

before i go,just one last thing....i have been led to believe that as CIS tax has risen from 18% to 20%, i will be able to claim back the 2% difference so long as i have not reached a certain thresh hold of earnings (not sure on the amount?) please can anyone enlighten me?

thanks again to all for your precious time!!

kindest regards, martin.

Murdina

Your CIS tax is a straightforward credit you claim on your SA tax return. Don't think level of earnings matter? It's just a way of prepaying tax, a bit like having tax taken off your bank interest.

Ems!

martin82scott wrote: »

thanks all so far! you have all been a great help!

so with regards to not havin reciepts for some items i have bought (vehicle & sat nav etc), is there anything i can do to claim towards these?

As stated above by another poster - you cannot claim anything extra for your car if you are claiming 40p /mile, this is classed as taking into account all expenses of the car ( eg insurance, petriol, tax, aswell as depreciation of the car). I'm not sure about the sat nav

i have heard of people fleecing the taxman for cars
and they dont even have a liscences and also been told that you are entitled to £6 a day parking expenses without proof of reciepts? madness and probably not worth the investigation!

I agree - don't even go there!! not 100% sure though abt the receipts- i do think there is something about not needing receipts for small amounts oif parking - but you do have to have incurred the expense obviously!!

before i go,just one last thing....i have been led to believe that as CIS tax has risen from 18% to 20%, i will be able to claim back the 2% difference so long as i have not reached a certain thresh hold of earnings (not sure on the amount?) please can anyone enlighten me?

ok - not sure what you mean - the system will just work the same way as always - the amount deducted is not the actual tax due - it is just an estimate. Once tax is calculated, if you have paid more than your liability, you will be due a repayment. this will be true of your 0607 return too, though.

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jimmo

The only thing that has struck me so far is the Sat Nav. No promises but, if you buy a car or van with Sat Nav already installed that comes within the 40ppm.I feel that if you have a system permanently installed so that it becomes part of the fabric of the vehicle that comes within the 40ppm.If you use one of the more mobile units which you would remove from the vehicle before selling and then fit it to your next vehicle that is probably a separate item of plant or machinery and you could claim capital allowances.
This is a link to what is included in the 40ppm which I hope is useful. http://www.hmrc.gov.uk/manuals/bimmanual/BIM47701.htm
Note especially that interest on money borrowed to purchase the vehicle can be claimed separately.

martin82scott

Stalwart is king! thankyou so much! i really need to learn my way around the hmrc website!

bergebabe

i know this was posted a while ago so sorry!!

i have a question related to the 40p per mile claim. is it the same with a van? my OH is claiming the 40p per mile on first so many miles then 25p per mile after that (i think those numbers are right!!) does this mean he cant claim depreciation on his van? I thought it was different if it was a van rather than a car...