Tax Return Expenses

[bombini]

Please can someone help me get my head around the expenses section of the tax return. Im going insane !!

I have called the tax helpline & suddenly they are no longer able to help me, I have to call my areas office. So I did that to be told 'we're only a call centre' and i would have to wait for a call back from a technician. 4 Days later they called & left a message with my mum with some dates I could go in for an appointment (in Worcester - 15 miles away) just to answer a question about expenses ?!!!! WTF I honestly think im going to cry with frustration

I don't understand how I work out business expenses for car repairs, petrol, and if i can include parking when going to the salon.

Also not sure how about washing machine for towels & mobile for business calls. Can anyone help ?!

 

[Sassy Hassy]

It's all worked out on the percentage of use for equipment that you use for personal OR business use. The easiest way for you car is to record your business mileage, then the IR have a mileage allowance in pence per mile. Multiply the amount of miles you have done by the PPM (pence per mile) allowance and you're done.

The other way is so long winded - you still have to keep a mileage log. The calculate as a percentage the amount of miles you use for business against personal use. Then you have to add all your car receipts - tax, insurance, petrol etc and then multiply the total of these by the percentage you have calculated. Then there are the capital allowances if your car is worth over £12k, and if not then you can allow a percentage of the car's write down value to offset againt tax as well. Now you can see why the above way is so much easier.

Don't think you can include parking if it's at your own premises.

Your mobile would be the same- you would have to work out the percentage of calls made for business use and then multiply the total invoice values by this amount. BTW when you enter this on your tax return, what you do is put the whole invoice value in the "total expenses" column, then you put the amount that you use for personal use in the "disallowable expenses". At the end you will add all the columns up, and subtract one from the other to give your total business expenses.

Not sure about the washing machine TBH, what I would do is keep a seperate set of powder for business use so you can claim all of this, but nor sure about the electricity. TBH I don't bother claiming for this, more hassle than it's worth! Although as I work from home I can claim an allowance off my total gas and electric bill, so that would cover it.

HTH

 

[bombini]

Thanks Sassy,

That makes things clearer now ! Think your right about the washing machine more trouble than its worth

 

[oey]

I know - tax forms do your head in dont they! That is one of the few lings I let the accountant do! He has got to justify his money some how!

 

[gillian w]

You can claim 40p a mile.
Why dont you do one of their free workshops they will do one somewhere near you.They are about 3 to 4 hours long and very good.There is one that shows you how to fill in tax returns they will tell you all you can claim for.

 

[Tiger Jay]

You can claim 40p a mile.
Why dont you do one of their free workshops they will do one somewhere near you.They are about 3 to 4 hours long and very good.There is one that shows you how to fill in tax returns they will tell you all you can claim for.

This is exactly what I do, though if you do claim on mileage then you can only claim mileage, and not claim for upkeep of the vehicle in addition.

Hope that's clear.

 

[gillian w]

Oh and you can include car parking for work appointments.

 

[bombini]

You can claim 40p a mile.
Why dont you do one of their free workshops they will do one somewhere near you.They are about 3 to 4 hours long and very good.There is one that shows you how to fill in tax returns they will tell you all you can claim for.

Oh and you can include car parking for work appointments.

Ive already done one of the workshops ! Was about a year ago was for newly self employed. Is there another one on Tax Returns then ?

I managed to speak to the SE helpline & they said I can't claim for car parking as im travelling to a set place of work.

 

[gillian w]

Ive already done one of the workshops ! Was about a year ago was for newly self employed. Is there another one on Tax Returns then ?

I managed to speak to the SE helpline & they said I can't claim for car parking as im travelling to a set place of work.

Yes there is another one that helps you fill in your tax return self assessment...so are you self employed but working in the same place all the time.

 

[bombini]

Yes there is another one that helps you fill in your tax return self assessment...so are you self employed but working in the same place all the time.

Thanks Gill I will give them a call about that course then as I definetly need to do it ! lol

I rent a room in a salon two days a week & mobile rest of the time. I don't pay to park at current salon but previous one had to pay £3 a day :irked:

 

[gillian w]

Thanks Gill I will give them a call about that course then as I definetly need to do it ! lol

I rent a room in a salon two days a week & mobile rest of the time. I don't pay to park at current salon but previous one had to pay £3 a day :irked:

I see because i dont think that when you travel to same place you can claim any car expenses at all,but you can for when you are out doing your mobile clients.
the course is self assessment for the selfemployed.You can call 01332 724410 or book online HM Revenue & Customs: Business Support Teams - Central

 

[bombini]

I see because i dont think that when you travel to same place you can claim any car expenses at all,but you can for when you are out doing your mobile clients.
the course is self assessment for the selfemployed.You can call 01332 724410 or book online HM Revenue & Customs: Business Support Teams - Central

Thanks, its all so confusing to me !