New Business expenses calculation.

[Johnny67]

Hi,

I am starting a new sole trader business and was wondering how do I go about calcuating my business expenses.

I have an office in the house and work there most days and to be honest and evening and weekends too.

So how do I calculate bills like like broadband, mobile phone, electricity and heating, my cars diesel, car insurance and road tax., when I use it to travel to meetings?

Is there a simple way to do it or is it done on a day by day basis and what receipt do I need to keep.

Also is there any other expenses I have missed?, accountancy fees of course.

All advice appreciated

Johnny

 

[myate]

Honestly, your accountant should sort that out, regards percentage of usage. For me, I tell my accountant each year what I pay in total for each item you mentioned, he goes & works out the percentage I can claim. Broadband I put all through as I would be on a much cheaper option if I didn't have a business at home.
In terms of receipts I put through, the broadband is a monthly bill, so he gets that receipt as normal with any other expenses. Petrol I do keep receipts but he just gets the full bundle at the end of the year & he works it out, no VAT can be claimed on it. Rest I put what I pay bi-monthly/yearly as a figure only....no receipt or anything.
My accountants are a firm & straight shooters, nothing gets claimed unless its business. If I need new car tyres, I'm allowed claim for 2 only, so 50%! I just let them do their thing, that's their expertise!
You have most if not all of the variables mentioned. All other expenses will be specific to your own business!

 

[IanC12]

Thank you myate that very helpful.

yes my accountant does do some of ti but I always worry that others may do it differently.
For 3xamole I work from home am in my house working 5/6 out of 7 from 9am to 7pm some days.

This obviously impacts the heating bills.

In a four room house do I charge a quarter of my bill though I know the bulk of the costs is me operating from home during the day.

Advice appreciated.

 

[T McGibney]

Thank you myate that very helpful.

yes my accountant does do some of ti but I always worry that others may do it differently.
For 3xamole I work from home am in my house working 5/6 out of 7 from 9am to 7pm some days.

This obviously impacts the heating bills.

In a four room house do I charge a quarter of my bill though I know the bulk of the costs is me operating from home during the day.

Advice appreciated.

Impossible to answer this sort of question meaningfully without knowing your circumstances.

There's a lot to be said for not claiming tax deductions on any domestic costs. The hassle of collecting and trawling through domestic bills and storing them for 7 years turns a lot of people off.