Clean It Up
UK Floor Cleaning Forum => Carpet Cleaning Forum => Topic started by: derek west on July 05, 2009, 08:01:45 pm
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doing my books for the first time as a cc.
i use collins essential books with no vat sections.
question is
what section do my cleaning solutions purchases go under?
derek
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consumables
you'd be wise to get an accountant.......not expensive if you've done all the prep work which I suspect you have. You do want one you can " chat " to and get useful and helpful information from.
The accountant's fee is an allowable expense and you should have no tax to pay in the first year, possibly two years.
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Derek if you get an accountant he/she will save you money on tax allowances you may not know about in the cleaning fraternity.
Did you do any quotes in your car? of course you did ;D
You see what I'm on about? they can sometimes get your tax defered into the year after so no tax to pay this year.
Shaun
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ive had an accountant for 15 years but thought i'd ask on here seeing as its sunday.
i was in retail before so all goods bought were for resale, cleaning solutions aren't really for resale.
ive no problems on anything else
ive not got a heading for consumables, suppose i could just write one in on the blank lines
cheers
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its actually not even got equipment so i'll just fill in a blank line with "equipment and consumables"
cheers
derek
sorted
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get a accountant or at least a tax advisor.
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Accountants are those people you hate, like bank mangers, but are very useful in business espically as it grows. Get an accountant, just to do you final returns
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Accountants are those people you hate
Funny you should say that, the Father in law's a retired Accountant! ;D ;D ;D
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Chemicals are classed as; Cost of goods for resale or use.
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Traditionally they are "cost of goods "sold"" so are deducted from your t/o to give gross profit margin ahead of "overheads" which are then deducted to give "net profit before tax".
Derek
I'm sure you of all people will not fall into the trap of not putting money away during year 1 to be paid in year 2 as I know you to be a savvy individual.
Roger
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its actually not even got equipment so i'll just fill in a blank line with "equipment and consumables"
cheers
derek
sorted
I think you need to be careful here as equipment should almost always be listed as capital expenditure the value of which only some is tax deductible this year, some year after and so on and consumables such as chemicals which will be used this year and be fully tax deductible.
Simon
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Simons right. Equipment must be seperate otherwise you won't be able to claim your capital allowances right down. Chemicals are cost of sales. Hope you are claiming for home office expenses etc as well.
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like i said, ive had an accountant for 15 years so claiming for every thing, even trainers, electric % of, i heat my van in winter and dry rugs with it so therefore i'm entitled to some electric for business,
cheers guys, i'll put chems as goods for resale and introduce a new collumn for equipment bought, and yes! my accountant will add in devaluation on everything. did you know you can get a small percentage of devaluation for your own car if its used for the odd business trip. ;)
derek
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Why not just pay a professional person to do it for you? We hate people getting a DIY machine to clean their own carpets and this is not different. Besides that you could lose a whole bunch of money by doing it yourself and if you don't get it right you could have the tax man on your back, (they do know to the nearest percentage point how much on average carpet cleaners earn) so don't try to be too clever with the old figure massaging trick! ;)
Simon
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i do my books, i don't do my accounts.
been doing it that way for 15 years.
derek
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I think you will find they are one and the same thing. It's always best to get a professional in to do them for you properly as it probably saving you a bomb knowing what you can and cannot put through your books as legitimate claims and with someone else dealing with that for you it frees you up to run your business.
Simon
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;D
derek
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I forgot, Derek likes to do things the hard way!
;D ;D ;D ;D ;D
Simon
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i like a challenge.
derek
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Simons right. Equipment must be seperate otherwise you won't be able to claim your capital allowances right down. Chemicals are cost of sales. Hope you are claiming for home office expenses etc as well.
writing down capital allowances has been scrapped this year, replaced by Annual Investment Allowance (AIA) you can now put in 100% of ALL purchases like a new van etc in the year you bought it!!
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You can read more here http://www.hmrc.gov.uk/budget2008/bn12.pdf
But basically you can now put in 100% on any investment purchase upto £50k
You can still use the old system if you wish (WDA) 'Writing Down Allowances' which is 20% a year 40% first year.
But Im sure we will all be using the new ;D I told my account too ;D
Your accounts should have informed you of these changes its a big change and a good one for small buisness's!!
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To change the subject back it sounds like Derecks doing the right thing, for example, you should add all your petrol reciepts up and give you accountant the figure.
You dont give him all the petrol reciepts and let him add it up! that way will cost you alot more.
This princible will extend to all your accounts, you caterise it all and do the adding up to save money. Its just a log really.
Simon do you give yours all your receipts invioce books and let him do the lot?
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I keep my own day book which is reconciled with my bank statements each week, so I have an "at a glance" view of where I am financially at any given time.
I also run a sales and purchase ledger, which I fill in monthly.
Then I give the accountant everything at the end of the year and let him do his stuff regarding write downs and any other acceptable allowances.
Steve
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I NEVER DO MY BOOKS
i take mine to my accountants every 3 months, they do all my book keeping, they work out where the best profit is made, we have meetings about how best to bring the business forward and at the end of the year do my tax retuns, the are completly BRILLIANT and within 2 months of the year end i know exaclty how much i own or not owe the inland revenue
it is one of the best moves i've made and at £167 a month ALL IN it only takes me a couple of hours of work to recoop the cost
NO BOOKWORK NO HASSLE NO STRESS AND I THINK AN ABSOLUTE BARGAIN
why people do their own books is beyond me
let the accountant do their job so you can do more of your job and actually earn more!
p.s HAPPY XMAS TO YOU ALL ................. just in case i forget to pass on my festive wishes in the season
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Tres Bon Colin !
Why have a dog and bark yourself ?
The Missus does my books and I can tell you that £167 a month is far cheaper than i have to pay.
Shaun
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hahaha you're not wrong there :)
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Nice one shaun :)
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You've been quiet Clinton, where have you been?
Shaun
Jim are you going to Brum tomorrow?
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But basically you can now put in 100% on any investment purchase upto £50k
It says plant and machinery - do you think a vehicle would be classified as that?
Simon
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Yes 'plant and machinery' is only a tax office term, your wand, TM, portable, van etc are all plant and machinery.
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YES use an accountant well said.
I do adding up receipts though.
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So your accountant is on £167 an hour just for adding up 2 columns of figures and deducing the obvious???
John
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John
I assume you referring to Colin Brights post.
I reckon his accountant is spending more then an hour.
You look and Colin says he takes his books to be done, as if Colin is not doing any entries, leaving it to his accountant who no doubt has a junior involved punching figures.
Then he mentioned meetings every quarter to discuss matters.
If it works for Colin then thats fine, but I,like a few on here, do at least the filling in the books as time goes on to try to keep the accountancy fee down.
I pay about £400 a year which I think is reasonable, takes hassle away from me and I know he will go for as much he can as business expense etc.
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Doesn't really matter Joe as he says he can afford it.
He can earn it back in a couple of hours lol.
£83.50 an hour??
John
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I am with Colin, i pay £136.25 per month plus Vat, i see my accountant 3-4 times a year for meetings/advice etc
for this he does my vat 4 times per year, plus my year end accounts,
vat per quarter is £180 + vat and year end is £915 + vat
It may seem a lot to some, but my accountants are one of the top in country, and put my trust in them.
Think there was a post a few month back from someone who's accountant had damned up and cost them money, if this happened to me i wouldn't have to chase them for bad advice, they would cough up immediately.
Bit like carpet cleaning, you get what you pay for.
Andrew
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acually i can earn it back in a hour on a large carpet, just like i did today
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Hi shaun :)
Just on holls in cyprus for a few weeks.
So only come on the computer in the hotel for a min or so :)
You will be having your 5 weeker soon wont you lol ;D
cheers clinton