Self employed tax help needed.

[r896neo]

Hi just went self employed last tax year and currently doing the books for self assesment etc. I am doing it myself as i am a sole trader with no employees so its pretty straight-forward.

The 2 queries i have are;

I have costs which i put down as consumables like gloves screws blades tool servicing etc but obviously i bought quite a few new tools in my first year. What percentage of their cost can i claim tax relief on and how do i put them down.

Secondly to make things simple i have bought all materials etc through my buisness account and charged any materials to a particular customer and kept all the reciepts as that one job. Is this necessary or can i just record materials as costs and not be specific as to which job and customer they relate to. This would make it easier now i am buying things on account etc.

This may require a very long reply so if you could point me in the direction of a good guide/ resource instead that'd be great

Thanks in advance

 

[WoodYouLike]

This may require a very long reply so if you could point me in the direction of a good guide/ resource instead that'd be great

Thanks in advance

Get in contact with a proper accountant. If you're doing this for the first time you need one!

 

[ant954]

i'm in the same boat and i got an accountant to do mine, for the time you will spend on doing your self assesment plus things you wouldnt use to offset against your buisness an accountant is worth the money

 

[r896neo]

Thanks for your replies but i'm probably not going to get an accountant due to low turnover and very few expenses outside tools. Any other help appreciated.

 

[WoodYouLike]

An accountant can help you save money, grow your turnover and show you how to calculate your depreciation of those tools in the most profitable way.

See it as an investment

 

[Mark Br]

Trust me a good accountant will pay for itself and they really aren't that expensive. You'll be amazed at what they will put through the books to save you paying tax.

 

[JohnD]

start by getting the free leaflets and forms from HMRC?

the questions you ask are very common.

http://www.hmrc.gov.uk/businesses/tmastarting-up-in-business.shtml

or ask

http://www.hmrc.gov.uk/startingup/bus_sup.htm

 

[chappers]

In answer to your questions you don't need to keep all the materials allocated to specific jobs.

You can depreciate your tools at 25% each year until you write them off at whatever their depreciated value is at the time. ie if you buy a tool for £100 then you can set £25 as an allowable expense, next year the tool is worth £75 and you can depreciate it by 25% again ie allow £18.75 as an allowable expense the tool then has a fixed asset value of £56.25 and so on. If you then say threw that tool away in that year you would be able to write off £56.25 as an allowable expense.
IT/communications equipment is different and can be depreciated 100% in the year of purchase.

However I agree with the others an accountant will save you money and their fees are an allowable business expense, I would seriously think of using one if only for the first couple of years so you can see how things work.
Also even thouigh your turnover is low at the moment that may not always be the case and your accountant will be able to administer such things as depreciation and carrying forward losses and profits in the most efficient ways.

 

[Leadman]

As far as i know, what ever your accountant charges you it will be tax deductable anyway! so you might as well get one.
The only time i did my own accounts i didnt get a rebate!
Cheers
Dave

 

[noseall]

i didnt get a rebate!
Cheers
Dave

whats a rebate?

 

[Thermo]

Thanks for your replies but i'm probably not going to get an accountant due to low turnover and very few expenses outside tools. Any other help appreciated.

im lucky my wife is an accountant. She also does a lot of work for small businesses. You wouldnt even begin to imagine the things you can legitamatley claim or offset even with a low turnover. Get an accountant, it will pay you back.

 

[roughcaster]

Thermo wrote,

my wife is an accountant. She also does a lot of work for small businesses.

Ever thought of putting a free web link in Thermo?

Roughcaster.

 

[Thermo]

shes got more than enough work anyway! Happy to dispense advice though

 

[Bilioustrumpstaine]

Thanks for your replies but i'm probably not going to get an accountant due to low turnover and very few expenses outside tools. Any other help appreciated.

Get an accountant who deals with small businesses, mine saves me loads of dosh. I would rather pay him than pay Gordo