Hello!

[maddyminx]

Hi everyone,

What a brilliant website! I've recently become self employed working as a Sales/Marketing and Research Consultant. Im pleased to say that Im currently working for my first client creating and writing up info for their website. I've also decided to offer typing/secretarial services locally (just to tide me over!) and am so pleased that I found this site as returning to the working world after having kids is a little daunting (but very exciting!).

I haven't got a website as yet and think it will be a while before I start asking for any help in that department, although any advice when I do will be most appreciated.

My biggest hurdle at the moment is getting my head around book-keeping/monthly accounts etc .... I've had a booklet from the Inland Revenue but they don't go into much detail and Im a little fed up with phoning the self-employed helpline due to getting varying information from different people every time I call them!!!

I would really like to know what types of things are classed as "Capital Expenses" and also as I only use my car for business purposes, can I just keep all the petrol receipts to count as expenses or do I have to detail every single mile that I do (I use the car a lot!)

If someone could give me a little help it would mean so much as I would like to get it "right" from the start to avoid having to come back to it all at a later date.

Hope you're all having a great day and Im sure I'll become so well educated using this site that I will be able to offer others advice in the future (lets hope!) :lol:

Thanks

Maddy
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[Alpha]

Hi Maddy and welcome to te forums.

With regards to your questions.

1) You can set a (very)general rule that if an item costs more than £100 and will have a useful life of over a year it is likely to be capital. Other than that you should be able to classify it as a revenue expense.

2) With regard to the car if you 'only use it for business' then by all means keep ALL the receipts for the car (fuel,maintenance, road tax, insurance etc) and claim these. It is also quite reasonable to have the car introduced as an asset of the business as well (I am assuming that you are operating as a sole trader at the moment, advice on all this is very different if you are a limited company) HOWEVER The revenue will argue (and I cannot disagree) that it is highly unlikely that your car is used ONLY for business (and how will you prove this?). Does this mean that you never go shopping in it, run the children to school/childminders/grandma's ?

It is very doubtful so an adjustment would be made in your tax return for the private use contained in the above expenses and capital.

[kyber]

Hi Maddy

Welcome to the forum. As you can see already from the speed and quality of response from Alpha, you will find this forum very helpful as you develop your business.

I look forward to seeing around the forum.

Stuart

[10 Yetis]

Welcome along Maddy.

Always good to see more marketing people on here.

[Ozzy]

Hello Maddy,
Sounds great that you are enjoying the first steps, and good luck with your first client.

Welcome to the forums!

[VeryMark]

You can claim business mileage at 40p per mile (unless the rate's gone up) for a private vehicle, but you must keep a mileage log to back it up if challenged by a tax inspector.

[Webstuff]

Hi, welcome to the forums!

[maddyminx]

Hi again and thanks for making me feel welcome!

I appreciate the info you've given me Alan ...... So far I really have only used the car for business as I use my husbands for everything else and friends and family help by running the children to school etc. Im sure at some point though I will use it for the odd trip here or there so how would I calculate what I've used for personal? I used to use about £10 a week before I started working?

Also thanks for your reply Crossguard.

Interestingly enough, these are the two confilicting pieces of advice I got from the IR so what do I do?

I was told by one person that I didn't need to keep a record of my mileage but just keep all my receipts, that I only needed to stick to the 40p per mile rule if I was an employee, and I was told by another to allow myself 40p per mile (which actually adds up to more than I've put in the car)? Also on one website, which im sure was to do with the Inland Rev, I read that if your car engine is over 3.0 which mine is, that you should allow yourself more than 40p .... very confused!!!!

Sorry to be a pain but like I said, I want to get it right so I dont have to backtrack. :roll:

Nice to meet you all by the way! :wink:

Maddy
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[Alpha]

Its not realy that confusing

Whichever method you use you really need to keep a record of mileage, who you visited and why (How else would you justify the business use to the Inland Revenue?).

Rather than keep all your bills you can alternatively apply the Inland Revenue recommended rates to your mileage. The rates are calculated to include all the revenue items I mentioned in my last post which is why it would be more than the fuel that you put in.

The maximum quoted on by the Inland Revenue is 40p per mile for the first 10000 miles per annum and 25p thereafter.