Tax question!!

[#jenjen#]

hi geeks!

i would like to pick your brains please.

i keep a record of all of my ingoings and outgoings of my biz for the tax man.

i was just wondering as i work in a shopping centre, can i claim back on my parking? i have all the records as i park in a pay and display everyday and you get the little ticket.

...

also where i work i rent a chair in a salon for 30% of whatever i earn, can i claim this back on my tax as an expenses aswell, as this is my rent???

i hope i have made sense and i hope there are some of you out there that can help me thanks!!!

x

 

[Kim Lawless]

You can't claim for getting to and from your work place, so I doubt it. xx

 

[lisa82]

Your rent is an expense so yes, deduct it from your total income before you get taxed, not for parking though x

 

[#jenjen#]

Your rent is an expense so yes, deduct it from your total income before you get taxed, not for parking though x

rite then, so i mite aswell chuck all the car parking display tickets that are covering the floor of my car!

when you say deduct the rent from my total income before i get taxed, do you mean i only claim for the 70% that i earn, dont even count the other 30%?

...

or do you mean claim for 100% that i have taken and the 30% rent i pay comes off the tax i will be paying?

if that doesnt make sense, please tell me and i will try and put it anoter way as i really could do with and answer on this because i want to make sure i am putting aside enough for tax.

(thanks for the speedy replies!) xx

 

[jes]

Hi,

Let's say you take £1000 a week, you declare £1000 as your takings (100%). You, then, give the salon owner £300 (30%), she gives you a receipt and you write this down as an expense.

Basically it's, Takings - Expenses = Taxable Income

 

[#jenjen#]

thanks for that Jes!

i am really going to try all of your patience now!

i always put 20% aside for tax, however if 30% of all of my profit is going down as a expense to the owner, would i ever be paying tax as your expenses some off your tax??

sorry if that is a stupid question but i really feel the need to get this right as i dont want to get into trouble.

thanks

jen

ps. i dont know how i would cope without this site, its amazing!!! x

 

[jes]

Hi Jen

You won't pay tax (or NI) on your expenses (as long as you can prove them) but you will have to pay tax and NI on you profits, so the 70%, of your profit that you keep, will be taxable.

We all have tax codes, which means we earn around £5000 to £6000 before paying tax and NI, so I think your plan of putting away 20% of your takings is a good one

HTH
jes

 

[#jenjen#]

brilliant, thanks for taking time time to explain that jes!

i pretty sure i understand now, ...oh i love this site! x