Sole Trader Receipts

[edpm]

Hello,

I've recently started working as a sole trader. I'm doing my VAT returns myself and I was just wondering if there is any leaflet which gives you an idea of what you can claim back in VAT and then finally in your Tax returns. I've been keeping receipts for lunch, petrol, medical things etc. Are there any other things I should keep track of? For instance, can I claim my driving insurance as a cost etc.

Thanks

 

[mirmick]

Re: Sole Trader Reciepts

Hello,

I've recently started working as a sole trader. I'm doing my VAT returns myself and I was just wondering if there is any leaflet which gives you an idea of what you can claim back in VAT and then finally in your Tax returns. I've been keeping receipts for lunch, petrol, medical things etc. Are there any other things I should keep track of? For instance, can I claim my driving insurance as a cost etc.

Thanks

Check this link for VAT info

[broken link removed]

Basically keep everything which is genuine business expense. If you are using the business credit card or business bank account for personal expenses then keep the track of those expenses. Most people dont bother at the start and then at the end it becomes a mess. Just MAKE SURE that you keep the personal expenses record. If the vehicle is commercial and you use in the business then yes but not for the car in personal use.

When you will file Form 11 then you need the extracts from your accounts. So keep the proper books of accounts. You dont need to submit the accounts with Tax returns but you have to keep the accounts because if ever Revenue decides for audit then you have to produce the accounts.

 

[edpm]

What happens (as in my case) when you own a personal car but you use it for your business travel. For instance, last week the tyres had to be changed. I've held onto the receipt and was hoping to claim them against VAT and income tax. Is this possible?

 

[mirmick]

What happens (as in my case) when you own a personal car but you use it for your business travel. For instance, last week the tyres had to be changed. I've held onto the receipt and was hoping to claim them against VAT and income tax. Is this possible?

Yes, thats possible. A deduction or credit is available in respect of disesl, car repairs, car parts (e.g set of tyres), subject to the condition that they are used for the purposes of a taxable business.