help -doing my own tax return for 3yrs - all wrong!!

evosy1978

Hello,

basically im self employed construction worker and i have been filling in my own tax return for 3 years now and ive been earning less than £20k. I also keep records weekly of what i get paid gross, net and how much tax ive paid. So when i fill my returns in i just add everything up then hey presto. For my outgoings ive just kept all my reciepts for tools, work clothes, materials, and all petrol receipts and reciepts for anything to do with the upkeep of the car.

This is where i think ive gone wrong. When i add my outgoings up i add absolutely everything, - every single petrol receipt has been added to the outgoings box. (IS THIS CORRECT) Now ive just read somewhere else about this 40p per mile rule??

My car is used for work only and not social use.

I usually get a nice few hundered quid back each year, but ive got a job with a new company now and im earning more money, so im gona get an accountant for this new year, but im worried i shud not of entered all petrol reciepts and therefore im worried i gota give alot of money back.

any help gratefull

firstinflight

Good idea to talk to an accountant, i think, to get everything straightened out. I don't know if you should be getting tax deducted from your pay at the source when you're self employed.

Most expenses are allowable so long as they are incurred wholly and exclusively for the purposes of your trade. The car should be fine, if it is genuinely used 100% for work. The 40p a mile rule is a rate agreed by hmrc for when there is mixed business/personal use, and it's too difficult to separate out the purely business running costs. Instead, you just claim a deduction of 40p per business mile.

Work clothes are generally not deductible (unless you are a musician, for some bizarre reason), because HMRC argue that you have to wear clothes anyway, regardless of whether you are at work. However, protective equipment like hard hats, hi-vis vests etc should be ok.

Bean_Counter

firstinflight wrote: »

I don't know if you should be getting tax deducted from your pay at the source when you're self employed.

This will be becuase the OP is being paid under the CIS scheme and having 20% tax deducted from the labour element of his / her invoices.

evosy1978

yeah thanks guys.

I will be getting advice from an accountant thats for sure because ive just noticed that my short tax return form is for earning less than £15000 and now i earn more. Does this mean ive gota phone up the taxman and get a different form???

As regards to the car issue im quite relieved, - am i allowed to put my insurance mot tax repairs in my outgoings box aswell?

thanks again.