Clean It Up

UK Window Cleaning Forum => Window Cleaning Forum => Topic started by: Dougaldum on January 28, 2015, 08:35:36 pm

Title: Just found out something about the TAX MAN
Post by: Dougaldum on January 28, 2015, 08:35:36 pm
Get this If you buy a window cleaning round you can not put it against your tax and you only claim £10 a month for your Business room if you spend one hour a day in it you could used to claim £300 not any more tax is squeezing self-employed to get as much as They can  ???
Title: Re: Just found out something about the TAX MAN
Post by: Smudger on January 28, 2015, 08:38:37 pm
That's why you buy some equipment with the round  ;)

Darran
Title: Re: Just found out something about the TAX MAN
Post by: LWC on January 28, 2015, 08:46:29 pm
Thats why you dont buy work  ;D
Title: Re: Just found out something about the TAX MAN
Post by: Tom White on January 28, 2015, 08:49:37 pm
It's like you can't buy goodwill if you own a restaurant.  You sell the premises and the name, but you can't sell the goodwill of your regular customers who eat at the restaurant. 

I'm guessing that's the principle behind it.
Title: Re: Just found out something about the TAX MAN
Post by: Clever Forum Name on January 28, 2015, 08:52:16 pm
What about canvassing service ?
Title: Re: Just found out something about the TAX MAN
Post by: Dougaldum on January 28, 2015, 08:54:50 pm
Thats why you dont buy work  ;D
i haven't bought any work and wouldn't but I have seen rounds go for 5 to 10 times it's worth just a lt money that you can't claim for expenses
Title: Re: Just found out something about the TAX MAN
Post by: Dougaldum on January 28, 2015, 08:57:54 pm
It's like you can't buy goodwill if you own a restaurant.  You sell the premises and the name, but you can't sell the goodwill of your regular customers who eat at the restaurant. 

I'm guessing that's the principle behind it.
yes you are right that's whAt the tax man says put it down to Goodwell
Title: Re: Just found out something about the TAX MAN
Post by: PoleKing on January 28, 2015, 09:23:33 pm
Get this If you buy a window cleaning round you can not put it against your tax and you only claim £10 a month for your Business room if you spend one hour a day in it you could used to claim £300 not any more tax is squeezing self-employed to get as much as They can  ???
Last year i was self employed. I got £520 for use of home as office.
Seems to be a price to me.
Title: Re: Just found out something about the TAX MAN
Post by: duncan h on January 28, 2015, 09:28:31 pm
Good job we all declare the cash payers  :P
Title: Re: Just found out something about the TAX MAN
Post by: Dougaldum on January 28, 2015, 09:29:45 pm
Get this If you buy a window cleaning round you can not put it against your tax and you only claim £10 a month for your Business room if you spend one hour a day in it you could used to claim £300 not any more tax is squeezing self-employed to get as much as They can  ???
Last year i was self employed. I got £520 for use of home as office.
Seems to be a price to me.
not any  more it's been reduced to £10 a month if you do 25 hours or more
Title: Re: Just found out something about the TAX MAN
Post by: keyser soze on January 28, 2015, 09:35:08 pm
does that mean if you are the seller of a round ,you don't pay tax on monies received from the sale of that round?
Title: Re: Just found out something about the TAX MAN
Post by: Dougaldum on January 28, 2015, 09:37:27 pm
does that mean if you are the seller of a round ,you don't pay tax on monies received from the sale of that round?
that's a good question I don't know but does sound good ???
Title: Re: Just found out something about the TAX MAN
Post by: PoleKing on January 28, 2015, 09:39:47 pm
does that mean if you are the seller of a round ,you don't pay tax on monies received from the sale of that round?

No. You have to pay tax on money in.

As been posted, its better to buy something tangible and the goodwill is 'thrown in' for tax reasons.
Title: Re: Just found out something about the TAX MAN
Post by: PoleKing on January 28, 2015, 09:46:33 pm
Get this If you buy a window cleaning round you can not put it against your tax and you only claim £10 a month for your Business room if you spend one hour a day in it you could used to claim £300 not any more tax is squeezing self-employed to get as much as They can  ???
Last year i was self employed. I got £520 for use of home as office.
Seems to be a price to me.
not any  more it's been reduced to £10 a month if you do 25 hours or more

Really?
Have you got a link please?
Seems different here:
http://www.companybug.com/home-office-expenses-sole-traders/


That, read along with other articles, says you can do the £4 a week or in full. As per the link.
Title: Re: Just found out something about the TAX MAN
Post by: Dougaldum on January 28, 2015, 09:50:38 pm
Get this If you buy a window cleaning round you can not put it against your tax and you only claim £10 a month for your Business room if you spend one hour a day in it you could used to claim £300 not any more tax is squeezing self-employed to get as much as They can  ???
Last year i was self employed. I got £520 for use of home as office.
Seems to be a price to me.
not any  more it's been reduced to £10 a month if you do 25 hours or more

Really?
Have you got a link please?
Seems different here:
http://www.companybug.com/home-office-expenses-sole-traders/


That, read along with other articles, says you can do the £4 a week or in full. As per the link.
I was informed by my accountant Who works from home and she's not happy about it because she can only claim As little as I've said
Title: Re: Just found out something about the TAX MAN
Post by: Clever Forum Name on January 28, 2015, 09:50:57 pm
Anybody know on hiring a canvasser ?
Title: Re: Just found out something about the TAX MAN
Post by: ChumBucket on January 28, 2015, 09:51:15 pm
That's why you buy some equipment with the round  ;)

Darran

All purchases have to be commercially justifiable. So buying well overpriced second hand equipment wont cut it either!! ;D
Title: Re: Just found out something about the TAX MAN
Post by: PoleKing on January 28, 2015, 09:51:29 pm
Get this If you buy a window cleaning round you can not put it against your tax and you only claim £10 a month for your Business room if you spend one hour a day in it you could used to claim £300 not any more tax is squeezing self-employed to get as much as They can  ???
Last year i was self employed. I got £520 for use of home as office.
Seems to be a price to me.
not any  more it's been reduced to £10 a month if you do 25 hours or more

Really?
Have you got a link please?
Seems different here:
http://www.companybug.com/home-office-expenses-sole-traders/


That, read along with other articles, says you can do the £4 a week or in full. As per the link.
I was informed by my accountant Who works from home and she's not happy about it because she can only claim As little as I've said

Fair enough.
Title: Re: Just found out something about the TAX MAN
Post by: CleanClear on January 28, 2015, 09:57:04 pm
Get this If you buy a window cleaning round you can not put it against your tax

There must be a dead simple way around this. Something simple like if you pay x3 for 1k of work then do not declare the income (3k) as you are not recieving it, you are passing it on . Get someone else to collect the money for you for the first three months , you might call him a co worker, i'd call him an intermediary!! You'll also have incurred a cost to clean this work and pass the money on................
Title: Re: Just found out something about the TAX MAN
Post by: Ashley Brothwood on January 28, 2015, 10:15:55 pm
everything for hmrc has to be fair and reasonable. If you can prove you've spent a portion of money for business purposes you can claim it. Such as having an electric heater running through the winter for the van, if you can work out how much electric it uses and the costs you'll be able to include that.

If your accountant says it's now £10 a month that'll be for a standard no questions asked expence. If you went to the trouble of working out how much the business costs you personally through household bills eg electric charging leisure batteries every day or the portion of the house / garage used to store business equipment you'll be able to apportion costs. As long as you can prove, if you had an inspection, you we're fair and didn't over charge you'll be fine
Title: Re: Just found out something about the TAX MAN
Post by: sunshine windies on January 28, 2015, 10:41:51 pm
does that mean if you are the seller of a round ,you don't pay tax on monies received from the sale of that round?

From what I understand you pay capital gains tax on any increase in the value of the round
E.g if you buy a round for 5000 then later on you sell it for 6000 you pay tax on the 1000
Title: Re: Just found out something about the TAX MAN
Post by: CleanClear on January 28, 2015, 11:16:13 pm
does that mean if you are the seller of a round ,you don't pay tax on monies received from the sale of that round?

From what I understand you pay capital gains tax on any increase in the value of the round
E.g if you buy a round for 5000 then later on you sell it for 6000 you pay tax on the 1000

That doesn't make sense. If you sell a round for 6K then you declare 6k income to be taxed on ? How would you insert 1k onto your balance sheet ?
Title: Re: Just found out something about the TAX MAN
Post by: DaveG on January 29, 2015, 06:54:45 am
Anybody know on hiring a canvasser ?
I

Hiring a canvasser is tax deductible mate. I used one in 2008 .. just make sure you get an invoice from them.
Title: Re: Just found out something about the TAX MAN
Post by: Clever Forum Name on January 29, 2015, 06:58:22 am
Anybody know on hiring a canvasser ?
I

Hiring a canvasser is tax deductible mate. I used one in 2008 .. just make sure you get an invoice from them.

Excellent. I will check with my accountant when I see him as well. Used one last year and yeah got an invoice wrote out on a napkin  ;D
Title: Re: Just found out something about the TAX MAN
Post by: andyM on January 29, 2015, 07:38:23 am
does that mean if you are the seller of a round ,you don't pay tax on monies received from the sale of that round?

From what I understand you pay capital gains tax on any increase in the value of the round
E.g if you buy a round for 5000 then later on you sell it for 6000 you pay tax on the 1000

That doesn't make sense. If you sell a round for 6K then you declare 6k income to be taxed on ? How would you insert 1k onto your balance sheet ?

I would guess that on the Business Income section of the self assessment you would enter the £6k in:
10. Any other business income not included in box 8
Title: Re: Just found out something about the TAX MAN
Post by: Spruce on January 29, 2015, 09:57:14 am

Not sure on this, not an expert, but buying a round surely is not just buying goodwill.  You can never guarantee a customer will move over to you, so buying customers does not sound right.  They can't be bought.

What you are buying is a database of contacts.  Would this be tangible ?  I read many businesses buying and selling databases, and sometimes these are worth a fortune.

They are potential customers and so aren't an asset. A customer is never an asset.

If none of the customers on the database you paid a fortune for bought anything from you, then the database is worthless. This is why they try to add value to a database - to make it more appealing but targeting a type of customer that would be more likely to buy the product or services being advertised.

Sir Peter Vardy once run the third biggest motor dealership in the country before he sold out to Evan Halshaw. Whenever he was approached by a manufacturer to take over a failing outlet, (Vauxhall in Leeds was one example), he would only buy the assets of that company, buildings, land, etc and a limited number of spare parts still in stock in the parts department. He wouldn't buy any customer database as he never bought goodwill.

He would make a really low offer, a take it or leave it type of thing.

However, when he sold the organisation to EH as a thriving business concern which was economically viable, then his customer database was worth something. How the tax side of it played out I'm afraid I do not know.
Title: Re: Just found out something about the TAX MAN
Post by: g.brookes on January 29, 2015, 10:28:04 am
I've had the bad luck of buying a round only to find out as self employed it's not tax deductible. However, when you become a limited company it does become a tax deductible expense. Totally unfair I agree against the average self employed window cleaner.
Am currently looking into becoming a ltd company and my accountant has told me even though the round was bought 3 years ago I should be able to get tax relief on it in future
Title: Re: Just found out something about the TAX MAN
Post by: Joey Eastwood on January 29, 2015, 11:13:27 am
people on here brag they can do a £20 house whilst  holding their breath then wonder why the taxman wants a piece L O L hardly minimum wagers are we stop whining and pay or sell up and matalan are looking for till staff 6.50 an hour...... lol
Title: Re: Just found out something about the TAX MAN
Post by: Spruce on January 29, 2015, 11:56:04 am
I've had the bad luck of buying a round only to find out as self employed it's not tax deductible. However, when you become a limited company it does become a tax deductible expense. Totally unfair I agree against the average self employed window cleaner.
Am currently looking into becoming a ltd company and my accountant has told me even though the round was bought 3 years ago I should be able to get tax relief on it in future

That's interesting
Title: Re: Just found out something about the TAX MAN
Post by: MrBungalowTWC on January 29, 2015, 10:18:16 pm
Blimey!

Can't believe this is my first post in a few years on this site, anyway.

There are only two things guaranteed in our lives, and they are death and taxes, lol.  :)
Title: Re: Just found out something about the TAX MAN
Post by: Nick_Thompson on January 30, 2015, 11:01:38 pm
people on here brag they can do a £20 house whilst  holding their breath

Love it, Joey!