Question to an accountant?
When my accountant asks me how much do you spend on let's say fuel,lunch,sundries or things of that nature, is it in my interest to say more or less ie: will i pay more TAX if i play thing's down a little or build them up a little? Sorry for the Naive question i know nothing of these matters it's my 1st one,Oh and before you 'Do it all by the book merchants' start I'M ONLY ASKING not going to cheat anyone Thanks,
United Kingdom - 6 Answers
People Answers, Critics, Comments, Opinions :
Answer 1 :
If he's trying to help you draw up a business plan, the more accurate you can be, the more use the finished product. The plan will need to be regularly reviewed as time passes and you get more of a 'feel' for how much you really do spend. If he's drawing up accounts for you, the Revenue may ask for some sort of proof of your figures, so the amount of flexibility you have to claim expenses isn't as great as some may lead you to believe! In general, the more expenses you can legitimately claim the lower your taxable profit. Some expenses aren't allowed for tax purposes - your accountant can tell you more.
Answer 2 :
Have you considered telling the truth?
Answer 3 :
You HAVE to supply receipts. No Accountant is going to take your word for it. If you are investigated by HMRC you will have to show receipts for every item of expenditure.
Answer 4 :
Kernow Lady is right - you can only include in your accounts actual, receipted business expenditure. All allowable business expenditure reduces the tax you pay, so its in your own interests to keep proper records of these items. If you are ionvestigated, HMRC will want to see evidence and if there is none, then the relief is withdrawn and you pay the tax back.
Answer 5 :
Agree with everyone else! You could be required to prove everything (you may not be), so as long as you are open and honest and do not deliberately mislead, then you'll get everything down correctly. I knew a guitarist who managed to get his jeans through his tax bill, as they were specific to the particular tribute band he played in!
Answer 6 :
To reclaim VAT you need the vendors VAT number, whihc, of course, will be on the receipt. No Receipt, no VAT number, no reclaim. Only MP's are allowed to lie, cheat and fraudulently claim expenses they are not entitled to .. for the rest of us (i.e. the peasants), it's criminal offense ...
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