Newbie tax return advice...

[Fuzquia]

When I took my first order I registered as a sole trader. Some of my equipment was purchased more than 3 months before I registered as self employed. This was due to me already being employed in the same industry as my business and already owning various pieces of equipment.

Things like my computer/graphic/printing systems I already owned, however I use them on a daily basis and are very much a part of the business. So should I be 'selling' these to the business? If so, how do I provide receipts for these sales?

I also have other receipts that are within the 3 month period, therefore are these fine to add into my accounts as normal?

I run my business from a spare room at my parents. I still live there but often stay at my girlfriends. I feel bad at using my parents electricity etc so is there any way I can account for a payment to my parents?

Also once my tax return is complete do I simply withdraw the cash leftover as my own? I don't plan to do this as I want to leave cash for new equipment etc, but I just want to know how this works legally as I do not take any cash out of the business at the moment, but hope to one day!

Any help appreciated...

[MyAccountantOnline]

To answer your questions -

1. You can claim what is called capital allowances on any equipment you use in your business - you dont have to sell the assets/items to your business. I am assuming you are a sole trader. They will form part of your capital introduced. The same applies to any pre-trading expenditure.

2. If your parents charge you for use of their home you can indeed claim a proportion of reasonable costs for tax purposes.

3. You can draw whatever you want from the business again assuming you are a soletrader - you will be taxed on profits ie business income less expenses which exclude your wages ie drawings.

I do think at this stage you would be well advised to see an accountant - their are so many things to consider when you are newly self employed.

Good luck with the business:)