Hi,

Could anyone shed some light or point me in the right direction for the following:



  1. I am using my family car for business (what percentage of the value of the car and expenses that go with it, would I be able to show as expenses?)
  2. I am using my home as business premises (Can I include certain percentage of the mortgage and bills as expenses, if so what percentage?)

Or anything else I could add as expenses as a self employed person?

Thanks
 
Hi,

Could anyone shed some light or point me in the right direction for the following:



  1. I am using my family car for business (what percentage of the value of the car and expenses that go with it, would I be able to show as expenses?)
  2. I am using my home as business premises (Can I include certain percentage of the mortgage and bills as expenses, if so what percentage?)

Or anything else I could add as expenses as a self employed person?

Thanks

With the car you have to show personal and business usage or you can claim milage and thats what I do I record business milage at 45p a mile.
As for using the home I dont bother
 
I do not believe you can include the mortgage or the council tax as these are not solely for the business (e.g. if you were not running a business then they would not change).
Regarding your services bills, you need to calculate the proportion of the area of your property that you are using for business and then you can use that percentage of your gas/electric etc (heat,power and light really) as business costs. e.g. if you were using one room of a five room house (not incl kitchen and bathroom) then you could allocate 20% of your bills to the business. Obviously if, for example, you only use gas for cooking then this is not applicable. I was told I could not assign water costs even for washing the van.
Phone call costs can be broken down on a reasonable basis based on proportionate usage.
You can also claim for laundry costs for your work uniforms if you only use them for work.
All your stationery, stamps, printers, ink, small tools (not capital items), advertising costs, professional fees, appropriate proportion of car repairs can be claimed as expenses.

It may be worth you having a look at the HMRC website as they have comprehensive (and sometimes OTT) information available and also check out the business link website that has easy to understand information.
The tax office offers free courses on starting your own business and the tax implications, get on some of those, they are very useful, and you can ask questions (you may not get answers!).
 
Last edited:
just a word of warning, the family car needs to be insured for business use, its possible to get stopped for having no insurance if not
 
See an accountant.

If you've recently gone self employed its the best way to maximise your income and lower your tax and NI liability!

Yes, there is a minute allowance for "home" use
 
Last edited by a moderator:
as regards the car. you can claim a set figure per mile for business use, think it's 45p/mile. this covers all vehicle expense.
 
I claim 45p per mile and keep a milage log no big deal as I had to do it years ago I also claim 50% telephone and broadband with an added 100% of my mobile that is £11 a month as for an accountant I dont use one. The way I see it HMRC set limits on their system so when it sees figures that look a bit dodgy it flags it and then someone has a look.

Dont get me wrong if youre earning are high then yes it may pay to get an accountant to sign off on your accounts

Just to add you need to keep a milage log this mean you log business milage and fuel bought as it shows HMRC what percentage of business miles opposed to private milage
 
Last edited by a moderator:

OFFICIAL SPONSORS

Electrical Goods - Electrical Tools - Brand Names Electrician Courses Green Electrical Goods PCB Way Green 2 Go Pushfit Wire Connectors Electric Underfloor Heating Electrician Courses Heating 2 Go Electrician Workwear Supplier
These Official Forum Sponsors May Provide Discounts to Regular Forum Members - If you would like to sponsor us then CLICK HERE and post a thread with who you are, and we'll send you some stats etc

Advert

Daily, weekly or monthly email

Thread starter

Joined
Location
London
Website
http://www.brithome.com/

Thread Information

Title
It's time to submit my tax returns!
Prefix
N/A
Forum
Business Related
Start date
Last reply date
Replies
8

Advert

Thread statistics

Created
Goody,
Last reply from
oldtimer,
Replies
8
Views
1,428

Advert

Back
Top