[Ian101]

I am in my first year too so in the same boat. I thought that I cannot offset my van and pole system off my income in year one but only 25% for tthe next four years as this is capital expenditure. Does this sound about right.

Yes you can.

check out the AIA ... link in other post ... depending on your taxable profit this year depends whether you ought to write it off in 1 go or over the next several years at 20% on a reducing balance .... only you or your accountant can decide which way to go.

[♠Winp®oClean♠]

I am in my first year too so in the same boat. I thought that I cannot offset my van and pole system off my income in year one but only 25% for tthe next four years as this is capital expenditure. Does this sound about right.

Yes you can.

check out the AIA ... link in other post ... depending on your taxable profit this year depends whether you ought to write it off in 1 go or over the next several years at 20% on a reducing balance .... only you or your accountant can decide which way to go.

Good advice Ian, it's not always best to use AIA, depends on your circumstances & can be a wasted opportunity of tax relief if you wouldn't have been taxed enough in the first place!

[Ian101]

I am in my first year too so in the same boat. I thought that I cannot offset my van and pole system off my income in year one but only 25% for tthe next four years as this is capital expenditure. Does this sound about right.

Yes you can.

check out the AIA ... link in other post ... depending on your taxable profit this year depends whether you ought to write it off in 1 go or over the next several years at 20% on a reducing balance .... only you or your accountant can decide which way to go.

Good advice Ian, it's not always best to use AIA, depends on your circumstances & can be a wasted opportunity of tax relief if you wouldn't have been taxed enough in the first place!

yup thats the gamble .... utter utter shame to waste a tax saving opportunity .... every pound a prisoner !!

[paul marshall]

so much for keeping it simple , anyway ive had a word with the missus and we have both decided that its a bit too complicated so for the first 20 years we arnt goin to pay any tax on anything at all , no thats what i call simple , and rumour has it the tax man is on here , so im sure he wont mind , right so that little conundrum has bin solved , just need to decide what im getting from the chippy for supper ,  have a good saturday night fellow windys 

[Ian Lancaster]

I don't mind sharing this with you

Each year I used to do something similar, so I could work out how much to put aside.

The figures need adjusting because personal allowances have increased and the tax rates have changed, but the mechanics are still the same.  It is taken from a Word document so the alignment has been lost but it is still logical if you look carefully.


Tax 2006 – 2007
                        
                £            £
   
Turnover:   (48 wks @ 680)  (136/day)         32,640.00

Less estimated expenses:   5,000.00         

Net Profit:                        27,640.00

Less Personal Allowance:   5,035.00

Taxable Profit:                     22,605.00

Computation

   Starting Rate 10% on    2,150.00
                     215.00

Basic rate 22% on                20,455.00     4,500.10

Total tax:                        4,715.10

National Insurance

   Class 2.      (Paid separately)

   Class 4       8% of Net profit less “lower profits limit” (£4.745.00)
         (As advised by Maidstone tax office)

               8% of  22,605.00      1,808.40
                        

Total to pay:                          6,523.50



50 Weeks @ 130.00 = 6,500             

[Simon@ Clearview contractors]

Very helpful info above but surely going limited is better with those kind of figures, the tax incentives would save you a couple of grand a year easy.