What can I claim for when filling in tax return?
Can somone please tell me.. If I earn £100 for example, and pay £20 to an accountant, does this mean that I can claim that £20 back from the taxman, and if so, doesn't this mean that it's worth everyone, no matter how much they earn (as long as it's in a taxable band) paying an accountant rather than doing it themselves? Also, does anyone have a list of what can be claimed back when self employed? Many thanks all!
United Kingdom - 7 Answers
People Answers, Critics, Comments, Opinions :
Answer 1 :
My husband is a self employed builder and always claims back his petrol, mobile phone bills, and any money he spends out on tools, or if he needs a new van etc. I think you can claim for things that aid your work, so for example, if you are a hairdresser, you can claim back on a new pair of scissors because without these you would not be able to work.
Answer 2 :
you can claim for everything, ut uf they accept it that matters. Put it all though the books you might be lucky,
Answer 3 :
OK..we can't really work on a figure of £100.00 so let's say you took in £20.000 which puts you into the 22% tax bracket...you add up all the business expenditure and say that comes to £5.000 ..leaves £15.000 less personal allowance of £5000 =£10.000 that you have to pay tax on ..you will pay 10% on £2150 and 22% on £7850 also 8% on £15000 after allowance which is National Insurance so as you can see your business will pay tax on every single pound it makes profit after those deductions ...the accountants free was included in business expense.......you do not claim tax or NI you paid as an expense as that is personal .....if you claim something you are not entitled to claim then it will come back to haunt you along with interest for how many years you got it wrong....it makes no difference to the tax man if you take £100.00 or £40.000 wages ..your tax bill will be the same .......if your income is below £15.000 you would pay the lower tax ..above £32.000 the higher tax ......you can do your tax online by registering with the government gateway https://online.hmrc.gov.uk/login?timeout=true&GAURI=https://online.hmrc.gov.uk/home
Answer 4 :
Hey, it depends on whether the accountant was employed as part of your trade. i.e. it relates wholly and exclusively to the purposes of trade. Yes it does make sense filing in a tax return but a lot of the general public don't know/can't be bothered to do one, so lose tax savings. If you are self employed there are loads of things that you can get deducted against your income to reduce your tax bill, a great example is 40p per mile of all business miles done, up to a max of 10,000. Also general repairs to you premises. Another one is if you contribute to a pension scheme it is tax deductable, so e.g. you pay £78 into a pension scheme, the govt tops that up by putting in another £22, thus giving you tax relief of £22. I could go on and on, if you want more details feel free to email me. Otherwise I will go on fro about 3 pages!
Answer 5 :
The Revenue have an extensive web-site just for people like yourself. On this website if you follow the links will answer all your questions. Goto the link below. You can also telephone 0845 900 0444 for help with a tax return they are open 8.0am to 8.pm seven days a week.
Answer 6 :
I don't quite think that you have an understanding of the tax system in the UK. You don't 'claim' back money from HMRC. You only pay tax on your net profit which is your business income less your business expenses. If you pay an accountant to prepare a set of accountant for your business then this is an 'allowable deduction' against income. 'Allowable deductions' are expenses that are incurred wholly and exclusively for your business. If there is any private element to the expense, then it is not allowed - for example the cost of your lunch, fuel for travelling from your home to your place of business. Capital expenditure is not an allowable expense. Capital expense are those spent on things that you keep to use in your business to earn income. For example, cars, vans, computers, machinery, tables, desks, chairs etc. However there is an allowance available for certain types of capital expenditure. It would have been better to employ the services of an accountant when you have started up the business so that you maintained a high standard of records. A good bookkeeping system will keep down the cost of accounts preparation. The cost of preparing a tax return is not an allowable expense.
Answer 7 :
If one is self-employed, it is worth paying accountancy fees, as not to miss allowable expenses and not to claim for wrong items and be in trouble. Accountancy fee, for example, to do your tax return, is not "allowable". To do your tax return is considered "personal" expense. It may be a false economy not to employ a qualified accountant, who can do your accounts computing correct profit and give other tax planing etc advice.
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