Any accountants present (sole trader confusion)

i had just written of all the money i had spent on setting it up until today when a guy said i could claim back all the stuff in my first year of trading but hay ho will have to see what the accountant says because no one seems to know lol

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Originally Posted by Nova00

can I correct the position

Where the qualifying trade was set up and commenced on or after 6 April 1995 the qualifying pre-trading expenditure should be treated as incurred on the day on which the trade, profession or vocation is first carried on. It therefore enters into the calculations of the profit or loss for the first year of assessment in which the trade profession or vocation is first carried on. No separate claim for loss relief is required. http://www.hmrc.gov.uk/manuals/bimmanual/BIM46355.htm

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Well thats just gobledegook to me lol lol lol

Like I said, AFAIK you cant claim it BUT then again Ive never looked into it as Ive never been in a business position where Ive had to attempt it.

http://www.businesslink.gov.uk/bdotg...cId=1084596842

if that link isnt correct then that site was linked from direct gov, and seems to be what you need.

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Originally Posted by Mike

Well thats just gobledegook to me lol lol lol

Like I said, AFAIK you cant claim it BUT then again Ive never looked into it as Ive never been in a business position where Ive had to attempt it.

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Link is HMRC website - please take my word for it the quote is correct

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Originally Posted by bmw156

http://www.businesslink.gov.uk/bdotg...cId=1084596842

if that link isnt correct then that site was linked from direct gov, and seems to be what you need.

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i dont a traing course with them monday and are doing two on tuesday but looking through the site i cant find what i wanted :thumb:

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Originally Posted by Mike

Was this spent before registering as sole trader? If so, then unfortunatly you wont be able to offset it against any future income :( (I dont think anyway :S)



Thats not a problem, in the highly unlikely circumstances of it being qeustioned, your old P60's/bank statements can prove any origin of these funds & that revenue was paid at source (at source being the employer paid it).



Correct, however, once your registered as a sole trader, any further purchases, be it tools, clothing (for work ;) ) equipment, fuel, vehicle repair/service, office supplies/stationary/ink, vehicle hire, PPE blah blah blah can all be offset against income :thumb:

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not true mate done a few courses with hmrc and if the money was spent for setting up the business it can be claimed as for the van if you havent just bought it there are 2 methods to claiming, you either claim 45p/mile traveled for work for the first 10k and 25p after or the actual cost so you can claim the depreciation on the van as a % of cost based on cot either 10 or 20% plus expenses so repairs insurance and fuel

all tooling is claimable as a 1 off expense even if you owned it before setting up you have to put a market value on the item at time of set up and use that figure, was told by hmrc is the goods were bought within 3 months prior to setting up and you have recipts the full amount is claimable, you can claim £3/week for increase inbills caused by the business without having to prove your bills have changes i know £156 ain alot but better than paying tax on it, if you have broadband you can claim a % of that if you use the net for business same with both land line and mobile, if you have a dedicated work number you can claim the full amount

would highly recomend you contact hmrc and ask them about the courses they offer there realy useful

i think the vat threashold this year is 75k turnover its at least 70k anyway

Like I said Rich, Ive not overly sure as Ive never been in a position to have to try to claim pre business set up cost so meh lol

You can also claim back work storage (unit rental) %'age of utility bills aswell, cant remember how much tho :S and your also entitled £10 per month non receipt claimable out going ;)

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Originally Posted by Mike

Like I said Rich, Ive not overly sure as Ive never been in a position to have to try to claim pre business set up cost so meh lol

You can also claim back work storage (unit rental) %'age of utility bills aswell, cant remember how much tho :S and your also entitled £10 per month non receipt claimable out going ;)

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if he aint doing anything from home other than books though proving the % of utilitys can be a pain in the ass im just claiming the £3 a week its easier lol and will never be checked as your allowed to claim it the milage allowance increase from 40p to 45 means i can claim 14.5k for running my car this year lol when the actual fuel cost is 7.5k so that leaves me 7k to maintain and insure it lol

cheers blue peg, gonna try and get on one of there courses :)

Do you guys use an accountant or do the work yourself ???

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Originally Posted by djbrowney

cheers blue peg, gonna try and get on one of there courses :)

Do you guys use an accountant or do the work yourself ???

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Its easy enough to do yourself if its just a sole trader with no subcontractors or employees. It gets bit confusing when you start using outside labour & have 3 to £5k tax bills every month for the privilidge :(