YourFriendlyHelp
13th April 2009, 15:46
Hi (again ;))
Right - assuming all goes well we'll have a husband & wife business partnership in the next week or so. We will be speaking to HMRC etc and registering as self employed, and therefore I understand I will have to do 3 tax returns; Mr; Mrs & Business. I will be asking such questions to HMRC/Business link - but also like real advice :)
We will be using 1 bed of our 3 bed house as office.
We expect to use existing cars and not make them company cars.
Couple of silly questions then:-
1 - is there a list somewhere of allowable "expenses" that can be taken off before taxable profit? Is there a guide? HMRC/IR list etc? *
2 - we will be house based and therefore need to drive to where the jobs take us (service provision) - and therefore, for example, incur petrol costs. Can I simply keep track of these and get us both to claim expenses out of the company bank at 40ppm? (or whatever the limit is for engine vs. mileage etc)?
2a - if mileage is claimable, I assume things like car insurance/maintenance is a personal cost and therefore not expensable?
3 - If "personal expenses" (e.g. petrol, train fair etc) are permited to be taken out, how do I account for this in my accounts package? I am not planning on using the payroll funcion as there is just "us", but do I just set us up as a "supplier" and "pay the expenses to us as the supplier?"
* I have prepared/submitted our tax returns previously without issue, including some fairly complex ones (property rental) without issue - so not a full novice on the returns - and previously I've just had the IR guides and a bit of cheek :).
(will be using MS Office accounting 2009)
Thanks for ideas :)
Right - assuming all goes well we'll have a husband & wife business partnership in the next week or so. We will be speaking to HMRC etc and registering as self employed, and therefore I understand I will have to do 3 tax returns; Mr; Mrs & Business. I will be asking such questions to HMRC/Business link - but also like real advice :)
We will be using 1 bed of our 3 bed house as office.
We expect to use existing cars and not make them company cars.
Couple of silly questions then:-
1 - is there a list somewhere of allowable "expenses" that can be taken off before taxable profit? Is there a guide? HMRC/IR list etc? *
2 - we will be house based and therefore need to drive to where the jobs take us (service provision) - and therefore, for example, incur petrol costs. Can I simply keep track of these and get us both to claim expenses out of the company bank at 40ppm? (or whatever the limit is for engine vs. mileage etc)?
2a - if mileage is claimable, I assume things like car insurance/maintenance is a personal cost and therefore not expensable?
3 - If "personal expenses" (e.g. petrol, train fair etc) are permited to be taken out, how do I account for this in my accounts package? I am not planning on using the payroll funcion as there is just "us", but do I just set us up as a "supplier" and "pay the expenses to us as the supplier?"
* I have prepared/submitted our tax returns previously without issue, including some fairly complex ones (property rental) without issue - so not a full novice on the returns - and previously I've just had the IR guides and a bit of cheek :).
(will be using MS Office accounting 2009)
Thanks for ideas :)