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gollo

  • Posts: 14
tax deductable expenses
« on: September 16, 2007, 08:59:54 am »
Does anyone claim an amount for the washing of their scrims & other cloths i.e electricity & powder. If so what's a reasonable amount to put in your accounts. ???

aztec

  • Posts: 793
Re: tax deductable expenses
« Reply #1 on: September 16, 2007, 09:13:36 am »
i wash my cloths daily and put down £10 per week and that covers everything mate

Ian Rochester

  • Posts: 2588
Re: tax deductable expenses
« Reply #2 on: September 16, 2007, 10:44:19 am »
If you are using one of your rooms within your house as an office, which most people do, then you can also claim a %age of all your household costs against the business.

ie: If you have 7 rooms within your house, then total up all your yearly household bills and claim 1/7th of it against your business.

You can claim for:

Electric, gas, water, council tax, and any other general running costs.

Keep receipts for all your washing powder and claim a percentage of that. £5.00/day would not be an unreasonable amount to claim for daily laundry (wear on machine, powder, electricity, your time)

I would always recommend you get a good accountant, they will save you more than they will cost you, a decent accountant will charge between £100-£250 for a basic set of year end accounts and will advise you on what you can and cannot claim for.

williamx

Re: tax deductable expenses
« Reply #3 on: September 16, 2007, 03:53:22 pm »
The Inland Revenue offer free courses for people who are in Business for themselfs.  Go to their web site www.hmrc.gov.uk

As for what you can and cannot claim, you will need to check your local tax office on what they allow, but the general rule is a percentage of the council tax - electricity - gas providing the room you use is only to be used for your business, so if you use a bedroom you cannot have any type of bedroom furniture in it at all, you also cannot claim the bathroom-hall or kitchen as rooms, so if you live in a 2 bedroom house with livingroom-bathroom-kitchen and hall and you use 1 bedroom for you business and it does not have any bedroom furniture in it then you can claim 33% of the cost of the electric gas and council tax, you cannot claim morgage or rent costs.

If you only use part of you living room then you will only be able to claim a nominal amount which in Birmingham is £2.00 per week.

If you are not on a water meter then you cannot claim a penny.

Also remenber that you cannot claim 100% of the cost of equipment if it costs more than £200 instead you have to claim 50% in the first year and then 25% every year thereafter untill you have claimed the intial cost

If you are in any doubt please call the inland revenue on  0845 302 1437, remember when you file you tax returns you don't have to prove what you are claiming for then, it will only become an issue if the tax office do an assemment of you and you business, they will want records for the last 6 years so if you have made a simple mistake on what is allowable or not then it could cost you thousands in back taxes and fines.

SonOfFormby

  • Posts: 409
Re: tax deductable expenses
« Reply #4 on: September 16, 2007, 07:39:45 pm »
The Inland Revenue offer free courses for people who are in Business for themselfs.  Go to their web site www.hmrc.gov.uk

As for what you can and cannot claim, you will need to check your local tax office on what they allow, but the general rule is a percentage of the council tax - electricity - gas providing the room you use is only to be used for your business, so if you use a bedroom you cannot have any type of bedroom furniture in it at all, you also cannot claim the bathroom-hall or kitchen as rooms, so if you live in a 2 bedroom house with livingroom-bathroom-kitchen and hall and you use 1 bedroom for you business and it does not have any bedroom furniture in it then you can claim 33% of the cost of the electric gas and council tax, you cannot claim morgage or rent costs.

If you only use part of you living room then you will only be able to claim a nominal amount which in Birmingham is £2.00 per week.

If you are not on a water meter then you cannot claim a penny.

Also remenber that you cannot claim 100% of the cost of equipment if it costs more than £200 instead you have to claim 50% in the first year and then 25% every year thereafter untill you have claimed the intial cost

If you are in any doubt please call the inland revenue on  0845 302 1437, remember when you file you tax returns you don't have to prove what you are claiming for then, it will only become an issue if the tax office do an assemment of you and you business, they will want records for the last 6 years so if you have made a simple mistake on what is allowable or not then it could cost you thousands in back taxes and fines.


So can I claim on my garage, as I use it to house my 650l tank and RO system?

Lee

williamx

Re: tax deductable expenses
« Reply #5 on: September 16, 2007, 09:16:13 pm »
Check with the Tax office but I would say no.

johnny_h

  • Posts: 689
Re: tax deductable expenses
« Reply #6 on: September 17, 2007, 08:24:19 am »
go to the local launderette find out how much it costs to do a wash and times it how many times a week you wash your scrims thats what i was advised to do
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