Start up loan - expenses

[Becky_simon]

Hello again

Sorry for all the questions! I am just trying to work out things for my 1st Tax Return.

I had a loan at the beginning to able me to set up with all my advertising, products, equipment and uniform etc. Apart from the Products and Equipment can I claim back on advertising and uniform or not? What about all the p&p charges for this as well?

Also am I correct in thinking I won't get taxed as my income is sooo small?

Thanks

 

[Katmoz33]

You just put all these things on your expenses.
You don't actually get anything back for these items or p & p but you take these off your earnings do your don't pay tax on them.


Does that make sense xx

 

[Becky_simon]

You just put all these things on your expenses.
You don't actually get anything back for these items or p & p but you take these off your earnings do your don't pay tax on them.


Does that make sense xx

Right...ok Im not sure im following. So your saying? So what about my car miles I do, I thought I could claim back 45p per mile?

 

[Steph86]

Hi,

I am in the same situation...

You can not "claim back" as people say, but u count all ur miles (aa route planner is a godsend!) And total up all ur miles then x it by 0.45 and the result you get you add on to ur expenses/outgoings... Same goes for uniform and p&p.

Ru in employment aswell as being self emplyed? The tax free allowance was 6450 (approx) so if u are only self employed u do not need to pay tax on that, anything over that u pay tax.

If u are in full time employment aswell as being self employed, then u have to pay 20% of any profit you make.

I have been going 6 months and made a loss as my outgoings were quite a lot as I was starting out...

I am not to sure if I can carry my £1,000 debt over to the new tax year so I earn that back before I make a profit- if any1 knows I'd be greatful xx

 

[Katmoz33]

Right...ok Im not sure im following. So your saying? So what about my car miles I do, I thought I could claim back 45p per mile?

Everything you claim is basically taken off your total income, they won't pay you any of your expenses back.
They take the off your total annual income.
Then you pay or don't pay tax on the remainder of your income.
The profit basically.
You never physically recieve any of your expenses back.

 

[Katmoz33]

Hi,

I am in the same situation...

You can not "claim back" as people say, but u count all ur miles (aa route planner is a godsend!) And total up all ur miles then x it by 0.45 and the result you get you add on to ur expenses/outgoings... Same goes for uniform and p&p.

Ru in employment aswell as being self emplyed? The tax free allowance was 6450 (approx) so if u are only self employed u do not need to pay tax on that, anything over that u pay tax.

If u are in full time employment aswell as being self employed, then u have to pay 20% of any profit you make.

I have been going 6 months and made a loss as my outgoings were quite a lot as I was starting out...

I am not to sure if I can carry my £1,000 debt over to the new tax year so I earn that back before I make a profit- if any1 knows I'd be greatful xx

Not sure what you mean by carry it over before you earn it back?

 

[Steph86]

I started in Nov say it cost me £3,000 to start out... I have earnt and respent all my profit/earnings.

I have £1,000 til I "breakeven"

So in my 1st tax year, I have made a loss...

Do I just write off the £1,000 ?

Or can I earn that back before my business is "profitable" over this new tax year? Can my debt be carried over? Sorry new to all this

I don't intend on making a profit til I have everything I need inc stock to sell, my aim is to do this whilst I am still employed, so when I leave to be self emplyed full time I am (hopefully) running a profitable business. Xx

 

[MrsHBeauty]

I started in Nov say it cost me £3,000 to start out... I have earnt and respent all my profit/earnings.

I have £1,000 til I "breakeven"

So in my 1st tax year, I have made a loss...

Do I just write off the £1,000 ?

Or can I earn that back before my business is "profitable" over this new tax year? Can my debt be carried over? Sorry new to all this

I don't intend on making a profit til I have everything I need inc stock to sell, my aim is to do this whilst I am still employed, so when I leave to be self emplyed full time I am (hopefully) running a profitable business. Xx

This bid the question is like to know the answer of. But lines a larger figure about 4k loss - I opened a salon and needed everything including decorating. I'm hoping I can start next year as -4k then if I make say 20k I'd be taxed on the 16k.

I'm going with my dad to see his accountant in the next couple of weeks so Im asking him then. X

 

[Steph86]

Yes, same as above... Inc I didn't explain myself properly lol... Xx

 

[pinkcouture]

This might be a silly question but if we buy an item like an ipad, that is going to be used for work purposes like storing client data and booking appointments then can this be added to the list of expenses. Obviously it's something you may use personally as well so I'm not sure where you would stand with claiming it for business?

 

[chazz!!]

Yes you can claim it i wouldnt mention that its used personally to. Tho some people may disagree with me their. X i claimed my laptop and a percent of my car. And everything else i in anyway use for work.

Sent from my GT-P1000 using SalonGeek

 

[pinkcouture]

When you say you claimed a percentage of your car how did you work this out? Was the car bought outright or on finance?

 

[chazz!!]

On finance. your a allowed to clain percent each year untill the full amont has been cliamed if the car is only used for business. If it 50/50 personal/business then you can claim half. A little bit of.it each year. Hope that makes sence.

Sent from my GT-P1000 using SalonGeek

 

[kezza*]

This is why you should use an accountant. It's classed as an expense. My accountant puts my car though, a % of my house bills cause I work from home, all products, all equipment, mobile phone bills, petrol, yes laptop and iPad, anything that you use for the business keep receipts. My accountant saves me all the hassel anything I'm unsure of I ring him and his cheaper than a iPad Lol

 

[Steph86]

Hi,

Just thought I'd update, I did my self assesment online and it does say u can carry debt over u just have to type it in... Xx

 

[Lucy-Jayne]

You can also put the interest part of your loan payments down as an expense each month.