Tax Returns, do you put through...

[IllumeGirl]

yes, was looking at more training this year! had a pro do my taxes last year as always have done my own but they are getting more complicated. always got away with claiming it before,lol, but i will defo call him this week would hate to have a audit..but that only happens to the greedy, hopefully!

 

[adelekeegan1]

Okay this may sound a bit harsh but frankly it needs to as there are a couple of posts on here that really concern me. Some advice may be well meaning, but if there is one place you never mess with then that's the Inland Revenue. Do not assume that you can claim for things because you think you can, because your best friend tells you you can, or even because the geeks say you can. Go on the Inland revenue course, go and visit your tax office or phone them up and get if from the horse's mouth.

If you claim for stuff that you are not entitled to and get called for a tax audit ... and trust me anyone can, it's a lottery as to whether you name comes up ... then they will not take kindly to you pleading ignorance, or saying that your 5th cousin twice removed used to be an accountant and says you can. YOU MAY BE FINED FOR COCKING THIS UP. Your life will not be worth living!

Please geeks if you don't know what you are talking about then please don't answer, you could end up getting someone into a hell of a lot of bother. The IR do all these courses for free because they want you to get it right in the first place. And just because a dog groomer or lap dancer etc etc can claim for stuff doesn't mean you can claim for it too. You are in a different job and need different tools to do it!!!

I will say it again, DO NOT MESS WITH THE TAX MAN, DO NOT THINK YOU WON'T BE CAUGHT AND HELL IF YOU WANT TO DO RISK IT THEN FOR PETE'S SAKE DO NOT ENCOURAGE OTHERS TO DO IT TOO.

This site is a professional forum and it looks really bad when people, no matter how well meaning, give out advice that they really are only guessing at! Go to your IR office, only they know what is right and wrong.

I couldn't agree more ! I worked in accountancy for 100 years before becoming a human and there is only one way of doing things - theirs.

There are no dodges, loopholes, tricks or fixes. A good accountant can save you the most tax but a good accountant will cost you the most money.

Follow the guidelines, don't cheat and you will find you can sleep at night.

 

[phoebe_cat]

I have recently been on a 5 day business course (which I have to reccomend to ANYONE thinking of starting up for themselves) and I have to agree with every word Sass has said.

I was told a uniform was not a uniform and therefore couldn't be claimed for unless it had a logo on it, or it could be argued that you could wear it out of work. The training things flabbergasted me too, but it's true, no claiming for business lunches or entertaining (unless you are off your own patch for a valid business reason)

Our advisor basically said if you have to think "oh, I wonder if I can claim for this" then you probably can't! And he gave us lots of examples of people who had put a few things through, not even amounting to £100 but it rang alarm bells and they had the IR on them, and it ended up costing them a LOT of money!

I learned so much on my course and was given dates for courses run through the IR too, which I'm just trying to juggle dates to go on. They've been doing this a long time, and they'll always win, so I'd rather not take the chance TBH

 

[Debbies Gellies]

Sorry I didn't read all the posts so it may have been said.

My accountant advised that you can only claim on the things that you use or need to do your job. So if you can work without toothpaste ie does it mean you cannot work because you did not clean your teeth. Whereas if you did not put on your uniform you would be nude and therefore you can claim against it as you need it to work. hope that helps.

 

[pazzy]

Okay this may sound a bit harsh but frankly it needs to as there are a couple of posts on here that really concern me. Some advice may be well meaning, but if there is one place you never mess with then that's the Inland Revenue. Do not assume that you can claim for things because you think you can, because your best friend tells you you can, or even because the geeks say you can. Go on the Inland revenue course, go and visit your tax office or phone them up and get if from the horse's mouth.

If you claim for stuff that you are not entitled to and get called for a tax audit ... and trust me anyone can, it's a lottery as to whether you name comes up ... then they will not take kindly to you pleading ignorance, or saying that your 5th cousin twice removed used to be an accountant and says you can. YOU MAY BE FINED FOR COCKING THIS UP. Your life will not be worth living!

Please geeks if you don't know what you are talking about then please don't answer, you could end up getting someone into a hell of a lot of bother. The IR do all these courses for free because they want you to get it right in the first place. And just because a dog groomer or lap dancer etc etc can claim for stuff doesn't mean you can claim for it too. You are in a different job and need different tools to do it!!!

I will say it again, DO NOT MESS WITH THE TAX MAN, DO NOT THINK YOU WON'T BE CAUGHT AND HELL IF YOU WANT TO DO RISK IT THEN FOR PETE'S SAKE DO NOT ENCOURAGE OTHERS TO DO IT TOO.

This site is a professional forum and it looks really bad when people, no matter how well meaning, give out advice that they really are only guessing at! Go to your IR office, only they know what is right and wrong.

Im glad you wrote this. And your right - only IR know. But all of it is confusing and perhaps unfair.

I may book myself on a course like phoebe cat just to get it from the horses mouth.

 

[Sassy Hassy]

Im glad you wrote this. And your right - only IR know. But all of it is confusing and perhaps unfair.

I may book myself on a course like phoebe cat just to get it from the horses mouth.

Honestly they are really good courses, and they are free, I can't recommend them enough. I don't even think all accountants get it right either. Go for it hun you won't regret it.

 

[Martigirl]

TBH there is a fine line with this one MJ! I'm not sure if you can claim it at all and would advise people to check with the IR.

However in the self assessment tax return there is a column where you enter the whole expense amount, then in another column you place a proportion of the invoice expense that was for personal use . At the end of all the entries you add up all your invoice expenses in one column, and addup all the non allowable expenses in another column, and subtract one from the other to give your net outgoing total. I have to do this for my mobile phone for example, I claim a proportion for home use and a proportion for business use.

Like I say please beware the advice you are giving out, it can be very misleading and land someone in the brown stuff!!!! Don't assume that just becuase you have a receipt that you can offset it against your tax, CHECK IT FIRST WITH THE IR! I was blinking well shocked when I was told that any subsequent training after my initial course I could not claim for. The only time you can claim after your initial course is if you have an awarding body that says you HAVE to train or take exams every year to keep your qualification valid. They basically said that it is your choice to train further and is not considered a necessary expense by the tax man!!! Even accountants get this one wrong from what I hear!

Oh dear that is a bummer

Now I am really confused Sassy cos I was told on my IR course that I can claim for training after my business opened but not for the training I did before. I was at Business Gateway and they have told me I can claim training too.

Fantastic thread and great advice I will check every item (twice) I have with the IR to ensure I get it right.

 

[EllaX]

I have recently been on a 5 day business course (which I have to reccomend to ANYONE thinking of starting up for themselves) and I have to agree with every word Sass has said.

I was told a uniform was not a uniform and therefore couldn't be claimed for unless it had a logo on it, or it could be argued that you could wear it out of work. The training things flabbergasted me too, but it's true, no claiming for business lunches or entertaining (unless you are off your own patch for a valid business reason)

Our advisor basically said if you have to think "oh, I wonder if I can claim for this" then you probably can't! And he gave us lots of examples of people who had put a few things through, not even amounting to £100 but it rang alarm bells and they had the IR on them, and it ended up costing them a LOT of money!

I learned so much on my course and was given dates for courses run through the IR too, which I'm just trying to juggle dates to go on. They've been doing this a long time, and they'll always win, so I'd rather not take the chance TBH

which course did you go on lisa cos i have been looking xx

 

[phoebe_cat]

which course did you go on lisa cos i have been looking xx

I did mine with TEDCO, I'm not sure if they are just North East or all over the country to be honest, but they are basically government funded business enterprise centres, so I would assume that most area's would have an equivalent.....

 

[JDs]

Honestly they are really good courses, and they are free, I can't recommend them enough. I don't even think all accountants get it right either. Go for it hun you won't regret it.

I took tax classes conducted by the IRS for self employed.
After the first year of being self employed, I asked for a voluntary audit on myself. I called the IRS and asked to be audited..

Stupid you say? :smack:
Not at all. It taught me what it was like to go thru a audit..and it taught me what they would be looking for in an audit.

Not to mention what my legal limits were for claiming tax deductions. (all the do's and don'ts)

would hate to have a audit..but that only happens to the greedy, hopefully!

Here in the states they do a random audits where they don't even know whos name is going to come up in the computer system. Then they have the "Red mark" audits where something you claimed on your taxes doesn't seem correct.

 

[pazzy]

I'm interested in what they look for...is it just a random thing? Are they looking to catch you out. What are the implications? I hear people saying it was the worst time of their lives but surely if you have nothing to hide then its just run of the mill check.

Anyone?

 

[Bagpuss]

there not trying to catch you out....but as you can imagine...there are those who claim way over they should and that just draws suspicion on themselves so yes they may well get checked out.

 

[pazzy]

Im sure there are people like that, but when its a one man band (like myself) who can only earn a certain amount - what exactly would they be looking for? Im just curious. I should do a course asap to find out more.

 

[Katelisa]

...receipts for your personal beauty products like deodrant toothpaste, make up, moisturisers etc etc etc? And your work clothes and shoes?

I'm asking because I used to be self employed years ago, as a promotions girl, and we could put all the above through as we had to look good and be groomed, and have the right clothes and shoes for certain jobs. (for example black trousers and black shoes)

Now, I am starting self employed in a salon in a week so I wont have to do a tax return this year obviously but just wondering if as a nail tech/massage therapist is it worth me keeping the above? After all, I guess we have to look groomed in the beauty business!?

Thanks

My accountant has told me that the only 'uniform' i can put through are my tunics. As apparently there are new regs whereby if you could wear it outside of work then its not uniform. Ie black trousers and black shoes. because they could be worn outside of work.

So i have left all uniform out as Id rather leave it out than get it wrong.

 

[Bagpuss]

Im sure there are people like that, but when its a one man band (like myself) who can only earn a certain amount - what exactly would they be looking for? Im just curious. I should do a course asap to find out more.

all they want is your out goings and incomings....i was told to keep it as simple as possible...so i do...lined a4 note book...i write down all my incomings...(and they tally with my appointment book)....then alongside i write all my outgoings...(and that tallys with my receipts)....then i do the maths to work out the difference.

I did my self assessment online last year and it was so easy i was amazed....xx

 

[EllaX]

all they want is your out goings and incomings....i was told to keep it as simple as possible...so i do...lined a4 note book...i write down all my incomings...(and they tally with my appointment book)....then alongside i write all my outgoings...(and that tallys with my receipts)....then i do the maths to work out the difference.

I did my self assessment online last year and it was so easy i was amazed....xx

this is what i do - i use the front of my a4 book for income and the back for outcome then work it out month my month (profit/loss etc) like angie, my income matches my appointment book and my outcome match my receipts. xx

 

[dee]

crikey the only thing i put through i my products thats enough , i dont dont think i would even be bothered to put small stuff like toothepaste etc..... coz you buy it anyway :lol:

 

[pazzy]

I used to do an A4 account but I just love the simplex d book, its so easy to keep track of. But they are so expensive - I tried to do a print out myself of the pages but got frustrated.

I have been doing my books for years so I must be doing something right - however with hearing what you can & cant put through its made me rethink.

 

[Peter Pan]

you go girl - i used to do my own accounts too - so much easier and cheaper

 

[louise jane]

When i went to the IR open workshop before i became self-employed, they said that you could not claim for your uniform as you have to have this to work in. I would definitely suggest trying to go to a IR workshop in your area as it is very knowledgable, as i had people telling me that you could claim for this and that - to find that there are quite a few things you are not allowed to claim for. Good Luck x