Claiming on tax relief


#1

I’m putting in all my expenses on Kashflow and plan to use to do my tax at the end of the year. I wondered how do you calculator how much phone bill/internet/gas/electric etc to charge to your business? Especially when part time?

Thanks!


#2

Do you charge council tax?


#3

Or water?


#4

It depends how much you think you are using for business use - e.g. if your office takes up 10% of your home’s floor space, then you could put 10% through the books… Having said that, a lot of people won’t claim any business expenses for home offices if they own their home as it can cause problems with capital gains tax when they come to sell, as they’ve technically been earning an income from that proportion of their home, rather than it solely being their place of residence.

I’ve never heard of anyone reclaiming council tax as if you were claiming that your home wasn’t being used as a residence but for business use, they’d no doubt sting you for business rates… Know which I’d prefer!!!


#5

Thanks for that Caroline, its helps as I’m totally cluesless on this. I’m renting and my office space is probably 15% of the house so would I just put through 15% of every bill? In this case, as I know you use kashflow yourself would I put through the purchase with the full amount or just hte 15%. I haven’t looked into it yet as I’m just trying to input everything but here you can use when donig your self assessment! What about the phone bill, same thing, estimate percentage used for?


#6

Have a chat with your accountant as it’ll change depending on your circumstances… This is their job - to make you as tax efficient as poss!


#7

Wasn’t planning on getting one! An extra expensive I can’t afford right now I’m afraid!


#8

They’re not necessarily as expensive as you think. I used to spend around £150-200 pa on mine and he did all the books and even dealt with the Revenue for me when they came inspecting one year. Takes a load off your mind for a reasonable fee. Worth shopping round.

And if you have to put off buying something else to afford one, maybe it’s worth considering.


#9

Thanks for the advice Jackie, where did you find your accountant and what should I ask for to me included in my yearly fee? Or do they charge per appointment?


#10

Jo

Mine was a client’s husband and it’s an annual fee. Ask around or try Yellow Pages and check a few out. You don’t have to take them if you don’t like them!


#11

Thanks for the advise again, so I’m looking for someone to be an account for a small business and to include everything on an one off fee.


#12

Hi,

I was wondered if people keep paper copies for records or expenses or would I just be abe to keep online bank statements as proof and do on kashflow?

Thanks!


#13

You need to keep copies of everything for 7 years I think, as they can call you back up to then. I work from home and claim 50% of my mobile bill and you can claim for heating etc but I have never done so as per the comments above.

I wish I had your accountant - mine charges £600 to do the end of year as well as charging around £400 to send off the tax returns for me and the business! I think I need to look and see if I can find someone cheaper!


#14

Wow that is a lot of paperwork! Where do you keep it all? I need to get my printer quickly then. How non eco friendly, that is a LOT of paper! So you just estimated 50% or did your accountant recommend? I have lots of free calls in my package so could just claim for 50% of the package price. Also your account sounds very expensive! I couldn’t afford that, at the moment I’m snowed under with the administration side of things I haven’t managed to advert or do any paid work so I really don’t want another expense right now, however I don’t want to let this just pile up and pile as it will just be harder to deal with when the time comes/I’m busier with clients.


#15

If it is things like invoices that you don’t need a signature on you could burn to CD? Would save some space… they just need to prove the detail of what you have done.


#16

I was planning to make online folders with bank statements, bills and proof of payments online as I don’t even have that many paper bills so it would mean printing. Do you think this is suitable?


#17

I would speak to your accountant before spending all that time printing - just to clarify things!

If you have them on the computer they may be happy with that - but if that was the case I would want to save them onto disc as a backup I think.

I haven’t had too much paperwork to date as I have been working on a contract basis so simply had an invoice and paycheck for each month, my occasional stationary purchases and my HMRC paperwork and contract. So my end of year bundle has only been about an inch worth of paper. I am expecting to have larger bundles once I am up and running with the VA business though!