What is tax deductable and what isnt; is there a list?

[dwilz]

Just started working for myself in direct sales
Is there a list guide somewhere to advise on what is and what isnt

2 things that would really help

a. Vehicle expenses ?
fuel etc

b. lunch allowance/entertaining

[CassioAcc]

You need to register with the HMRC as self employed within 3 months. Also look on their website for the notes for self employed for details on allowable expenses.

If you do a search in this forum the link has been posted a number of times.

[dwilz]

thankyou I looked at the webpage for self employed HRMC allowances
but not very helpful.
I own my own car and was wondering what, if any, percentage is deemed to be my own personal use on, for example
£1000 worth of fuel receipts
or do I have to work it out in miles

[elainec100]

Have a look at the sticky on sole trader v limited as there is a link for use of home as office - look at the one for a sole trader assuming this is what you are.

All your expenses have to be wholly, exclusively and necessarily incurred for your business. You will not find a full list but the notes to the SA103 will help. This is the self employed self assessment form that you must complete each year:

http://www.hmrc.gov.uk/worksheets/sa103f-notes.pdf

See pages SEN 6 and 7

[elainec100]

Allowable car expenses:

Car and van insurance, repairs, servicing, fuel, parking, hire charges, vehicle
licence fees, motoring organisation membership; train, bus, air and taxi fares;
hotel room costs and meals on overnight business trips

Disallowable:

Non-business motoring costs (private use proportions); fines; costs of buying
vehicles; travel costs between home and business; other meals

[dwilz]

Thankyou thats really helpful
You mention non business motoring costs (private use proportions)
Is there a listed percentage by the tax man
for instance
My milage is likely to be quite high
lets say 1000 miles per week
My personal use may account for just 5 miles to do the shopping etc
would the tax man accept that, or is he just going to slap a percentage of 30% as personal use

[elainec100]

No - just keep a log of journeys and miles done (private and business).

[dwilz]

Thats really helpful thankyou Elaine
What about luch expenses and entertaining
as I am going to be on the road is there an allowance ?

[elainec100]

These are not allowable, see the links I have given you:

Entertaining clients, suppliers and customers; hospitality at events

other meals

Plus there is some case law on lunches

[dwilz]

The link you gave me isnt active.....
hmrc.gov.uk/worksheets/sa103f-notes.pdf

but basically there is no allowance for lunch etc?

[elainec100]

It works for me :

http://www.hmrc.gov.uk/worksheets/sa103f-notes.pdf

Anyone else having problems with it.

And as I have already said - no lunch is not allowable.

See this case:

http://www.hmrc.gov.uk/manuals/bimmanual/BIM37660.htm

[jholden]

To add another link to that offered by Elaine:
http://www.bytestart.co.uk/content/taxlegal/9_6/business-expenses.shtml

Remember anything and everything you buy for business keep receipts.

Jason

[dwilz]

Many thanks

I have sorted it it was a browser problem
firefox didnt like it
but ok with explorer
And thanks for your help much appreciated

[elainec100]

No problem - good luck with your business