[derek west]

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

[robert meldrum]

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.

[Shaun_Ashmore]

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

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

[derek west]

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

[derek west]

its actually not even got equipment so i'll just fill in a blank line with "equipment and consumables"
cheers
derek
sorted

[PaulKing]

get a accountant or at least a tax advisor.

[Karl Wildey]

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

[daysdeepclean]

Accountants are those people you hate

Funny you should say that, the Father in law's a retired Accountant!

[AJB]

Chemicals are classed as; Cost of goods for resale or use.

[Doctor Carpet (Ret'd)]

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

[absolutecleaning]

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

[John Kelly]

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.

[derek west]

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

[Simon Gerrard]

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

[derek west]

i do my books, i don't do my accounts.
been doing it that way for 15 years.
derek

[Simon Gerrard]

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

[derek west]

 
derek

[Simon Gerrard]

 I forgot, Derek likes to do things the hard way!

Simon

[derek west]

i like a challenge.

derek

[master-clean]

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!!