C
Not an accountant so take this with caution!
Your car, decide/calculate a milage figure and keep a track of you miles you drive for work. Then calculate the figure, include fuel, car services, car tax etc in your milage figure.
Fuel for travel, either fill the car with a specific amount of fuel that will be used for work and keep the receipts. Alternativly, if you use your car about 40% of the time for work keep about 40% of you fuel receipts as expenses!
A home office can be claimed for in expenses, again work out how much extra it is costing you, and claim this. If you get 6 bills a year (bi-monthy) you could just put the full amount of 1 as expenses, as approximate. My understading is tax man won't be too strict on this but just don't take the pi$$!!
Buisness meetings and lunch etc. keep the receipts and put them in as just that, expenses! Again i would imagine if it was all above board tax man would be ok with it but if figure for lunch meetings was very high then a question might be asked!!
Sorry this advice is misleading is almost all respects. Why do people persist in posting replies that they're unsure of? Self-employed people can not claim mileage. Claiming for both mileage and fuel costs is forbidden, no matter who you are. The idea of filling a car with fuel to be exclusively used for work purposes makes no sense. There are drawbacks and pitfalls involved in reclaiming home office expenses. Routine lunch etc costs are not allowable, unless incurred while away from normal place of work, and subject to further conditions.
+1
Crazy advice from spindizzy...almost 100% wrong and dangerously misleading in places.
Sorry this advice is misleading is almost all respects. Why do people persist in posting replies that they're unsure of? Self-employed people can not claim mileage. Claiming for both mileage and fuel costs is forbidden, no matter who you are. The idea of filling a car with fuel to be exclusively used for work purposes makes no sense. There are drawbacks and pitfalls involved in reclaiming home office expenses. Routine lunch etc costs are not allowable, unless incurred while away from normal place of work, and subject to further conditions.
There is a difference between mileage allowance and actual expenses incurred. As an employer you are entitled to pay and offset against tax a mileage allowance (within reason) to employees who use their car for business purposes. However, as a sole trader you are only entitled to charge the actual costs relating to the use of the vehicle against your taxable income. I.e diesel/petrol - car tax etc.
Just want to follow up on this Brendan.
My wife is a sole trader and at the end of year, the actual costs relating to the use of her car (Petrol/Diesel) are factored in. However, at no stage has Car tax or Car insurance costs ever being included against her taxable income. Is this correct?
Also at the end of each year, her accountant sends a list of books/figures he requires from the bookeeper (ie. me). One point also asks - Did you purchase new car this year?
Why does this matter to a sole trader?. My wife has just purchased a new car? How does this affect her as a sole trader?
Thanks.
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