Hi all,
Firstly I know I need to talk to an accountant asap but I managed to bamboozle a trainee a/c friend with the following which if anyone can shed some light it would be great!
Myself and my wife are PAYE workers and combined income is well into the upper tax bracket.
I recently was offered the opportunity to earn some extra money and registered a business so I could send an invoice (Oct 2014). I supplied 2 props to a movie set in London. 1 belongs to me and 1 to a friend in the UK. £500 each. He will invoice me for his half of the total £1000.
Q1: How is the figure for taxable income generated? Are deductions taken first i.e. my friends £500 before tax is considered.
Q2: Could i use my £500 to purchase equipment to expand my stock (currently 1) and thus avoid tax altogether... seems too good to be true...
Q3: Is there a question/complication over exporting a service to the UK?
This is going to lead to more work in the future so any pointers would be gratefully received.
In essence I will become a middle man providing props and training/labour. Invoice amounts will be potentially large but costs will also be high as I source and pay other suppliers.
Thoughts?
Firstly I know I need to talk to an accountant asap but I managed to bamboozle a trainee a/c friend with the following which if anyone can shed some light it would be great!
Myself and my wife are PAYE workers and combined income is well into the upper tax bracket.
I recently was offered the opportunity to earn some extra money and registered a business so I could send an invoice (Oct 2014). I supplied 2 props to a movie set in London. 1 belongs to me and 1 to a friend in the UK. £500 each. He will invoice me for his half of the total £1000.
Q1: How is the figure for taxable income generated? Are deductions taken first i.e. my friends £500 before tax is considered.
Q2: Could i use my £500 to purchase equipment to expand my stock (currently 1) and thus avoid tax altogether... seems too good to be true...
Q3: Is there a question/complication over exporting a service to the UK?
This is going to lead to more work in the future so any pointers would be gratefully received.
In essence I will become a middle man providing props and training/labour. Invoice amounts will be potentially large but costs will also be high as I source and pay other suppliers.
Thoughts?