Omega Owners Forum
Chat Area => General Discussion Area => Topic started by: tigers_gonads on 29 February 2012, 10:07:01
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In a couple of months, I'm back in business with avengence ;D
Looks like I will be running only one car (for both business and pleasure) for at least a couple of years until it picks up :(
What (in the eyes of HMRC) can I ofset against my future tax bill, car maintenence / fuel and serviceing wise ?
Not like i'm likely to make a profit / break my tax code in the first year or two :-\ ;)
I can't see me being VAT registered in the near future.
I will be just down as a sole trader :y
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Not alot in this day and age :(
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I would recommend setting up a Limited company, just in case it all goes south again, although that does involve a little more paperwork.
As for servicing costs etc, I doubt you could claim much. But you can claim mileage at the HMRC approved rates which should cover that as well. If you are likely to break the 18k(?) miles higher rate threshold then make sure you spread it over the year ;)
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I have always submitted my van repairs/servicing/petrol to my accountant under Vehicle Maintenance...he has never said anything about not claiming for it :y
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I would recommend setting up a Limited company, just in case it all goes south again, although that does involve a little more paperwork.
As for servicing costs etc, I doubt you could claim much. But you can claim mileage at the HMRC approved rates which should cover that as well. If you are likely to break the 18k(?) miles higher rate threshold then make sure you spread it over the year ;)
I'll look into that Paul, Thanks :y
Can't see that tbh :-\
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Calculate your business milage as a percentage of overall milage and then claim that percentage of all you vehicle costs + 36p per business mile.
Simpl's
HTH
Phil
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I would recommend setting up a Limited company, just in case it all goes south again, although that does involve a little more paperwork.
As for servicing costs etc, I doubt you could claim much. But you can claim mileage at the HMRC approved rates which should cover that as well. If you are likely to break the 18k(?) miles higher rate threshold then make sure you spread it over the year ;)
I'll look into that Paul, Thanks :y
Can't see that tbh :-\
I can highly recommend this company (http://www.companiesmadesimple.com) if you want to go down the limited route ;)
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I have always submitted my van repairs/servicing/petrol to my accountant under Vehicle Maintenance...he has never said anything about not claiming for it :y
Problem is, with only one car in the household its going to be used for pleasure aswell :(
I think the milage bit should be ok as long as I keep a "Day Book" that matches up to my invoices, I can varify what mileage is work and what is personel :-\
Idealy, i'd love a small van but with no money and no credit rateing, i'm totally stuffed on that score for a good few years :(
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Calculate your business milage as a percentage of overall milage and then claim that percentage of all you vehicle costs + 36p per business mile.
Simpl's
HTH
Phil
Thats what i'm after :y :y
Cheers Phil :)
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I always assumed it was 50% of whatever cost you entail no expert but web site does offer calculations etc
vans are 100%
My accountant used to still claim for part of my car although i ran a van
not sure what i will be doing now i am learning to do my own accounts
here some info
http://www.businesslink.gov.uk/bdotg/action/home?r.l1=1073858805&r.s=l
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I always assumed it was 50% of whatever cost you entail no expert but web site does offer calculations etc
vans are 100%
My accountant used to still claim for part of my car although i ran a van
not sure what i will be doing now i am learning to do my own accounts
here some info
http://www.businesslink.gov.uk/bdotg/action/home?r.l1=1073858805&r.s=l
:y
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Calculate your business milage as a percentage of overall milage and then claim that percentage of all you vehicle costs + 36p per business mile.
Simpl's
HTH
Phil
Thats what i'm after :y :y
Cheers Phil :)
Glad to help - I now do my own self assessment as accountant charges got waaay to high :o and that is how he always did it. I have always kept very detailed records and all he did was enter onto self assessment through his system. You can never have to much info that you understand if you are ever assessed by HMRC. Accountant is not liable if it is wrong based on info you supply.
Here is a link to self assessment gov site specific page on mileage but rest is there. Find some time (and strong coffee ::) ) and have a good read. Also have a quick re-read just before you do your accounts as some things change
Good luck with your venture (or return) I have never (well almost) looked back
Phil
http://www.hmrc.gov.uk/incometax/relief-mileage.htm (http://www.hmrc.gov.uk/incometax/relief-mileage.htm)
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ditto on accountant fees
just got sage instant accounts to use mainley becuase i was struggling with the profit and loss account with regards to depreciation etc on plant and machinery.
But Phil is right all the info is on the site although a bit daunting at first and lots of reading but not as bad as i thought and wished i had done this years ago and saved the £600 a year bill :o
plus a good point is you can download all the help sheets etc
and as Phil said all the best with your venture :y
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Thanks for the advise lads :-*
After spending 2 years trying to save the business then the last 10 months sat on my arse with this bankruptcy, believe me i'm not fussed about money anymore ........... I just want a few quid in my pocket and a reason too get out of bed in the morning other then being a taxi driver / cleaner / cook for swmbo :'(
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good for you mate hope this time things work out better
taken me 10 years to get back to some sort of normality and now we are in reccession :( business partner did a runner to newzealand with our emplyed accountant ( his wife) then the bill started coming in 160k later ceratinley taught me the value of money :o
got a feeling in my water this year will be my year hope its the same for you :y not that its been all bad just financially at the end of the day its just money ???
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I once had a car on the driveway, insured as a second car but with no tax or MOT, and no engine. That was my personal car.
The car that worked was for work use "only" ;)
Not sure it's do-able now with SORN etc.
I have a "friend" who lives with gf, is on her insurance so again, uses his own car for work only :y
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Ltd companies are good. You apply for a dispensation re expenses, so you don't have to show them on any personal tax stuff, I charge 45p/mile for all business trips, plus of course subsistence allowance of say £6 breakfast, £10 for lunch and £15 for evening meal while away from the Ltd office, eg out on site. And overnight you are allowed £5 for incidental expenses, in addition to claiming for any accomodation required. All totally legit :y
Ken
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If your going T/A, your can introduce the Car into the Business, that way claim Maintenance, Road Tax, Insurance from your profits (make sure your Insurance covers you for Business Use), and if need be deduct a small percentage of that for personal use, the tricky bit is Fuel, in theory if your traveling to different locations each day, that could be considered as travelling to and from work, which in theory is not deductible, a real bummer if your doing a 100 mile round trip to do a job, a way round that would be to rent a desk or lock up somewhere local to you, then your traveling to and from your place of work before venturing off to do your jobs.
The other way, as already said, is not claim anything but to charge yourself X pence per mile for traveling, not sure how that works with the to and from work bit though.
Also as said, Ltd, go T/A for the first 12 / 18 months and see how it goes, if starting to really take off, might be an idea to go down the Limited Company route in case it goes wrong, etc.
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If anyone has access to companies house check it out.
HMRC in 2006 ceased trading and declared themselves bankrupt with 6 million in the bank mmmmmmm suspicious or what.
Re- named HMRC LTD from HMRC PLC.
I'd like to know how anyone can declare themselves bankrupt with 6 million in the bank.
And that 6 million pounds of our tax money still sits there today under the title HMRC PLC.
One rule for us and one for them goto you tube and check out John Harris its an illuision or even Brian Gerrish they tell the true story of whats going on behind those closed doors.