sarahlou06
Well-Known Member
I've done various searches on this but I wanted a self employed geek to explain if in simple terms
Ok, if u are self employed you can claim back the vat on expences that you buy. Example; uniform, phone bill, equipment. You cannot claim back the vat on the servicea you provide. Eaxmple; when i do my tax form i will write everything i have earnt in the last year. I will then write every expense i have had (keep reciepts they sometimes ask for them). If you earn over the vat mark (i think is £70k not sure) you will have ti pay 20% vat.
Please ask another question if i have missed anythin x
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Basically I'm working in a salon where I get 40% commission of every treatment I do. I am not VAT registered but salon is.
At the end of the week when wages are being handed out they deduct the vat off my 40%??
Doesn't sound right to me?
You can only claim back the VAT on expenses you have bought if you are VAT registered and therefore charging VAT on your services.
Thank you so much. I don't think I'm going to be vat registered as I'm other one beauty room & I don't order much.
I'll do a tax return in Jan (as this is my first year starting out)
In Jan 2013 hopefully I won't have to pay much!
Is this correct?
No you can plaim your expenses back if youre self employed because u have a personal allowance and the price will cone off your tax bill or you will get a rebait.
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No you can plaim your expenses back if youre self employed because u have a personal allowance and the price will cone off your tax bill or you will get a rebait.
Sent from my GT-I9100 using SalonGeek
I'm sorry, but this is completely incorrect. We are talking about VAT here not tax.
You don't 'CLAIM' expenses back.
You take your total sales, less expenses and you are left with your profit / loss. You don't physically claim the money back off of your tax bill! Your expenses are taken away from your turnover then if you have a profit, tax is paid on anything over your personal allowance.
Ir really does frustrate me that there are people on here trying to run businesses and yet they don't know any business fundamentals!
Expenses are something completely seperate to VAT.
Expenses = products, uniform, rent/commission, in fact anything you have to spend in order to run your business. This you can claim back (have removed) as personal expenses from your own tax return.
VAT = tax you pay on products purchased, and you can only claim this back if you are VAT registered.
To the OP, I think you need to clarify if you really are self employed or not. You need to call HMRC, they are in fact a pretty friendly, helpful bunch despite their reputation lol and get them to explain the rules to you.
Once you have that information I suggest you then go back to the owner and re-negotiate your deal as to me it doesnt sound right that you be essentially paying their VAT from your commission - surely it should be that they pay VAT on their income from you (the 60%)
So how come when i did my tax return last year i was told to write down expenses such as unoform, training expenses etc. (things i had payed for)? And that the amount will co.e off my tac bill? Sorry just realy confised now lol xx
Sent from my GT-I9100 using SalonGeek
So how come when i did my tax return last year i was told to write down expenses such as unoform, training expenses etc. (things i had payed for)? And that the amount will co.e off my tac bill? Sorry just realy confised now lol xx
Sent from my GT-I9100 using SalonGeek
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