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Roy Harding

  • Posts: 1964
Expenses against Tax
« on: January 30, 2005, 06:49:09 pm »
I claimed 2/3 of a brand new washing machine one year because of washing scrims ect, also 2/3 of the price of a tumble dryer. After explaining to my account how much I used them for bussiness & private, he allowed them. :)

Also gas for heating hot water and electric! :)

First aid is also a tax deductable expenses. :)

What have you claimed unusual lads ???? :D

rosskesava

Re: Expenses against Tax
« Reply #1 on: January 30, 2005, 11:19:04 pm »
All my mobile phone costs.

Or a part thereof of my water rates.

And don't forget 33% of my pc costs? All costs ........ guess you know what I mean.

Washing up powder too.

Plus the good old fairy every week.

And ........ uniforms but every item of clothing needs to have the company name or logo on it. I have a reciept for those costs too. Sure I do. Yup.

Ian_Giles

  • Posts: 2986
Re: Expenses against Tax
« Reply #2 on: January 31, 2005, 06:01:30 am »
I can't say as I claim for anything strange :-\
We have 7 rooms, one of which I claim as my office, ergo 1 seventh of my housing running costs gets claimed for. Got no plans to sell the house, so the implication that the tax man may want a piece of it should I do so doesn't bother me 8)
I claim a tiny part of the house phone costs and about 25% of my mobile phone, bills are itemised, if the tax man decides to take an interest in you will come unstuck if you claim for more than you should :'(

I was chewin' the cud' with a customer last month, telling him I was just about to send of my tax return, all filled out courtesy of Which Tax Calc.
He told me that the Tax Man decided to investigate him, went back the 6 years and he wanted everything.
They start out assuming that 100% of everything you are trying to claim for  is personal and it is up to you to prove otherwise that the percentage of costs you are claiming are justified.
You can claim and get away with loads of things, or at least you can think you are getting away with it! Your accountant, should you be lucky enough to have a really good one, will pull you up if he see's anything that you can't claim for, but he can only go on the things you give him, and the tax man won't be putting the thumbscrews on him, its you he will be interviewing :o
So even if your return is rubber stamped and accepted, its probably because they haven't pulled your accounts out of the hat for closer scrutiny this year.....but they might next year :'(
It's like Russian roulette, as each year goes by without a visit from him, the sweats get worse until you get the confirmation they agree with your return. you can breath easy for another 12 months, but they'll be back, they'll always be back :o

Ian

Ian. ISM CLEANING SERVICES

Roy Harding

  • Posts: 1964
Re: Expenses against Tax
« Reply #3 on: January 31, 2005, 08:07:47 pm »
Hi Ian,

I do know you I met you years ago in st Arvans, as I live in Monmouth.

I did get invetigated about 4 yrs back, they went back seven years but all was well. They wanted to know all names address of sub contractors every thing. But Ive been cleaning now 20yrs, and allways make sure that what I claim is right, my accountant is very hot and will soon say if you cant. Hows things in chepstow? :)

AuRavelling79

  • Posts: 23827
Re: Expenses against Tax
« Reply #4 on: January 31, 2005, 09:02:43 pm »
Hi there all you Wye Valley Boys plus Ross

How do you claim for your vehicle? - we  write down the value of the car (virtually exclusively used for w/cleaning) at 25% per year.

And we claim a proportion of washing m/c and tumble dryer purchase and running costs - too right -  they're always being used for my stuff especially in winter!

Malc G
It's a game of three halves!

Roy Harding

  • Posts: 1964
Re: Expenses against Tax
« Reply #5 on: January 31, 2005, 09:42:27 pm »
For my works van 95% bussiness 5% private use. You can also claim depreceation. Say it cost £900 the first year you can claim £300 the next year you can claim another third of £600 = £200 you can claim, then a third of £400 and so on till your down to 0.

choice.clean

  • Posts: 231
Re: Expenses against Tax
« Reply #6 on: February 02, 2005, 07:07:40 am »
If you want to keep it simple do this don't claim anything for home office. i.e. electric room rental council tax. you cqan still claim for you computer staionery office equipment etc.
and just claim all of your phone bills i.e. internet, land line, mobile. I have had this confirmed twic by my local business connect and 2 accountants the inland revenue does not like it but they will not pull you on it as it is too much hassle to go through all your bills and work it out but do not attempt to claim any of the other costs above or they will jump on it.
I find this is the simplest and most cost effective method.
My bills are usually £75 per month for these combined so I am getting the better deal and I don't have to do loads of fiddly calculations.
1914

Roy Harding

  • Posts: 1964
Re: Expenses against Tax
« Reply #7 on: February 02, 2005, 08:16:07 am »
The above expenses are all legitemet expenses wich you are allowed under tax laws to claim, not tax evastion. Example, I use my washimg machine 5 days a week to wash scrims, and twice for family use. So it is as important to my bussines as ladders ect. I was interested in expenese people have claimed, because for about 10yrs I never claimed any portion of my water rates. And after all it is one of our major things we use.

But if your happy paying tax when you dont need to fine. Pherhaps its me just being tight. But a pound in my pocket is better than in the tax mans.  :) :)

Re: Expenses against Tax
« Reply #8 on: February 03, 2005, 04:49:57 pm »
Isn't there a tax document that clearly describes what is tax deductable? The best I can find on the Inland Revenue web site is not very helpful: http://www.inlandrevenue.gov.uk/selfemployed/faq/faqwhatexpenseswhenself-employed.shtml.
 :(

Gordon

carloso

  • Posts: 129
Re: Expenses against Tax
« Reply #9 on: February 03, 2005, 05:35:50 pm »
 hi roy
noticed in the thread that ian talks of  a tax audit.
well it can come to any of us, and if it does it can cost you thousands to defend and the dear old inland revenue will not re imburse your costs when they find that you are cleaner than gods armpits.
thats just the way it is.
 but you seem to like the things you can claim for so heres one, join the federation of small business, costs £30 then £100 a year, tax deductable.
 one of the things they provide is full support if  you are tax audited for free (its in the package) they also provide shed loads of other things like, free legal/ employment law helplines etc.
i,m a member, im not on commission or any other thing, i just think its a great deal and as such i push it when i can   
carloso

gaza

  • Posts: 1642
Re: Expenses against Tax
« Reply #10 on: February 05, 2005, 06:22:01 am »
when Iwas 13yrs old many years ago,my dad had a vat man come to the house,Iremember my dad saying to me do you believe in Jesus to which I replied I did,then he told me well his dad is coming to see me tonight,you can sit and listen,but keep your mouth shut,Iremember a man in a black suit and a brief case in hand,after he had gone I said to my dad how cum Jesuses dad is younger than him,to which my Dad replyed cus hes allowed to be son cus hes the vat man,and hes allowed anything he wants,only later in life did I take it in.
IM AT THAT AGE MY BACK GOES OUT MORE THAN I DO

texas girl

  • Posts: 348
Re: Expenses against Tax
« Reply #11 on: February 05, 2005, 05:45:48 pm »
In America we can claim all of our health insurance costs. I also have the option of claiming depreciation on my vehicle or a standard mileage rate which is 37 cents per mile.  :-\

I always go with the mileage because it adds up and is easier for me. I keep track 1/week of business mileage(or close estimate), and I keep my record on file. It can be a simple calender or notebook. 8)

Also, there are charities you can deduct, and of course all supplies, phone bills, advertising, any subcontractor's pay, office equipment,clothing that is used for business, etc. I am always looking for helpful advice on doing taxes.  I do my own. Always have. It is really not that difficult. Just follow the instructions. :-*

My ex-husband used to work for the IRS and he told me that claiming a part of your home could be a red flag, as well as lunches, hotel bills, etc.  But if good records are kept I see no reason not to deduct all you can. :)

I seem to have enough deductions without useing my home although I do have a proffessional office right here. I do keep good records just in case, but I pray that I don't get audited because just the fear of scrutiny for all my stuff is anxiety producing. :P

Actually, if you were to travel to another country to attend a window cleaning convention, etc, all of the expenses accrued are deductable. Keeping good records and having proof on hand is necessary. :o

All in all, I would say there is always room for improvement in record-keeping.

Adios Amigos(spanish) :-*
Debbie