Receipts and tax implications

[newatnails]

This is for all you self employed geeks out there I am finally going to bite the bullet and set myself up doing nails & beauty part time, alongside my other part time job (office work).. However, before I buy alot of stock etc...., if I buy it now and keep the receipts, will I be able to put the receipts in etc..., on the next financial year for tax purposes as in 2013/14 (april'13 onwards) ?

Hope this makes sense, when I put my year end accounts in, would these receipts still be claimable even though the stock was bought in this financial year 2012/13 ?

All advice welcome and thankyou :lol:

 

[mazwiz]

I think you'll need to do a tax return from the day you register as self employed, so there will be one that covers a few months, then your 2013/2014 next year!

 

[RebeccaQ]

As far as I'm aware any products bought with receipts dated from now until 5th April 2013 will go in this tax year. Receipts dated 6th April 2013 onwards will go in next years. There may be exceptions to the rule (I don't know of any personally)but you would need to speak to an accountant and it may complicate things if you were filling in your own SA form. xx

 

[Gemster]

Am I right in thinking your question is can you include these expenses on your tax return even if they pre-date you registering as self employed? I.e if you purchase equipment/products over the next couple of months to set up your business but you don't start trading until 1st April? If so, yes you can include these costs on your tax return when it is due.

 

[newatnails]

Am I right in thinking your question is can you include these expenses on your tax return even if they pre-date you registering as self employed? I.e if you purchase equipment/products over the next couple of months to set up your business but you don't start trading until 1st April? If so, yes you can include these costs on your tax return when it is due.

Thanks guys, and yes Gemster that's exactly what I meant., you've just worded it much better :lol:

 

[emcmillan]

Hi there - yes you can claim for items purchased pre registering self employed, the assets (stock,equipment etc and where applicable services) are brought into the business as if purchased on the first day of trading.
Up to 7 years for assets. The assets must still exist in the business when it begins trading in order to claim, so if you bought a laptop last year and will use it to search for products on the net etc then this can be claimed but remember to apportion out if you use for personal use also, if however you have the receipt but the laptop is no longer in use you cannot claim, if you bought a beauty kit 7 years ago and its unopened (ok bad example as it would be no longer good to use but just for sayings sake!!) then you can claim but if you have used the products even though you have the recipt you cannot claim as an expense , if you hire an accountant to do your tax return - keep all your receipts - if they cannot claim as a business expense there is no harm done, i would just maybe seperate them to bring to their attention when you meet up, any help just pm me! x
Specific deductions: pre-trading expenditure: scope

 

[newatnails]

Hi there - yes you can claim for items purchased pre registering self employed, the assets (stock,equipment etc and where applicable services) are brought into the business as if purchased on the first day of trading.
Up to 7 years for assets. The assets must still exist in the business when it begins trading in order to claim, so if you bought a laptop last year and will use it to search for products on the net etc then this can be claimed but remember to apportion out if you use for personal use also, if however you have the receipt but the laptop is no longer in use you cannot claim, if you bought a beauty kit 7 years ago and its unopened (ok bad example as it would be no longer good to use but just for sayings sake!!) then you can claim but if you have used the products even though you have the recipt you cannot claim as an expense , if you hire an accountant to do your tax return - keep all your receipts - if they cannot claim as a business expense there is no harm done, i would just maybe seperate them to bring to their attention when you meet up, any help just pm me! x
Specific deductions: pre-trading expenditure: scope

ahh thankyou for that emc..., I may be intouch again

 

[adventuregirl]

When you are filling out the SA, and attaching receipts etc, what in fact are you claiming for? Is it the vat you paid or a proportion of the cost? Sorry, this is all new to me! X

Sent from my GT-I9300 using SalonGeek

 

[shadow1]

When you are filling out the SA, and attaching receipts etc, what in fact are you claiming for? Is it the vat you paid or a proportion of the cost? Sorry, this is all new to me! X

Sent from my GT-I9300 using SalonGeek

The reciepts you save for your records are used to offset the tax you pay on your profit.

So if you have a reciept for £10 for stock, all used for the business, thats £10 less from your profit, which you will then pay income tax on (if its above the threshold).

HTH xxx

 

[adventuregirl]

Excellent. Thanks very much for explaining! X

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