Claiming back the cost of tools?

[jaypp]

Incidentally, after posting I did find quickfile on a google search but not sure what to make of some of the reviews. Do you use it yourself telectrix?

Im not a ltd company, (Im just doing subbie sparkies mate work to fill in blanks my initial training left me with, with a really good company who, thankfully, seem to not mind when I dont know certain things and dont mind showing me) but due to my self employment I'm thinking I need to start getting serious on the paperwork side of things.

Due to the fact I dont take a large sum of money home, I'm not sure if hiring an accountant is the best thing for my situation. Obviously I will definately need one if the day comes where I do any of my own work.

So, just so I get this right, I claim back the VAT (20%) I have paid for my equipment but not the entire cost?

Thanks all

Sorry if I added to the confusion re VAT. As post #9 says, you get about 20% back which is in effect the same value as VAT. If you do your own accounts and don't want to use an accountant, just remember the basic principle that your net income is everything you've had 'come in' minus everything that's 'gone out' with regard to work, So those are the 2 figures you use (total income and total expenses). You are being stopped 20% at source and need paperwork for this. If you do self assessment on-line, I've heard it's very simple if you have the info above. Don't forget to keep paperwork for X years incase of inspection.

 

[Razzmond]

Thanks for the explanation, that helps alot! I'll get the hang of it eventually.

 

[Adam W]

I haven't got an accountancy qualification and I do my own tax return.
Basically you just put down how much you earned, how much you spent on things like tools, mileage, PPE etc, then there's a box for you to subtract one from the other. Even I can do that, which I'd rather do than pay an accountant £200 or so to do.
People say things like "yeah but an accountant knows what you can claim for" and "my accountant gets me 2 grand back, how much do you get back for yourself?" The amount you get back depends on your circumstances - if you've paid a load of tax you can get a load back. If you haven't paid any you'll probably have to pay some, but that wouldn't be any different if you pay an accountant or do it yourself.

 

[Octopus]

One important factor for anyone planning to buy a property or move up the ladder, if you are SE, mortgage companies are now asking for "formal accounts" for 3 years, so the expense may be necessary.

 

[sparkdog]

I've always done my own accounts as well,really not that difficult.