What can I write off against tax

R

Ron Burgundy

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i'm just in the process of reginstering as a sole trader, i work in the PAYE sector during the day and dj at the weekend.

now this is all new to me so i was wondering what can i write off against tax, i know the term is probably wrong but i mean what outgoings can i put against the business, some examples.

diesel, tolls, hotels, meals, mobile phone, house phone and broadband.

my industry is wide, so i can add cd players, av equipment etc as well.

any information would be great, i want to do as much as i can without professional fees
 
Hi there,

Just on one point, re: your home phone bill & broadband, you can only claim the difference between your phone bill & broadband before you started working as a sole trader and phone bill after. E.g. if you normal phone bill is €80, now goes up to €100 due to increased usage, you can claim on the extra €20 only.
 
Ron Burgundy said:
i want to do as much as i can without professional fees
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I used to operate as a sole trader and would strongly recommend that you get an accountant because you will have to file returns. They are also best placed to advise you on what you can claim as an expense.

If you are working away and have to stay over night then you can claim an overnight allowance, it was around 120 euro a night a couple of years ago so be sure to ask them about that!
 
askalot said:
If you are working away and have to stay over night then you can claim an overnight allowance, it was around 120 euro a night a couple of years ago
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Yes if you are a company director, but most definitely not if you are self-employed!

Just goes to show the importance of getting proper advice on all the potential complications of self-employment.
 
we didn't have broadband, plus its a standard fee per month. but i do intend to employ an accountant but i want to have as much work done as possible to lower the amount of hours i need to pay him/her for.

here is an example i only do weddings and have to wear slacks, shirt and tie.

now i never wear them in any other part of my life ( jeans and t shirt to work during the day) so is that considered a uniform ?????

its the small things like that.

anyone know of a good accountant in Laois ????
 
Ron Burgundy said:
we didn't have broadband, plus its a standard fee per month. but i do intend to employ an accountant but i want to have as much work done as possible to lower the amount of hours i need to pay him/her for.
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Fail to prepare, prepare to fail. You may well end up paying your accountant more in the long run to correct mistakes than it will cost you to get proper advice at the outset.

Ron Burgundy said:
here is an example i only do weddings and have to wear slacks, shirt and tie.

now i never wear them in any other part of my life ( jeans and t shirt to work during the day) so is that considered a uniform ?????
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No (How long do you think your accountant would take to answer that question?)
 
Do you use the broadband in some way in your business as a DJ? If you can't justify it, it will be disallowed.

Wearing smart clothes would not be considered a uniform, plenty of people in business wear suits etc. that they would not wear in their own time but they cannot claim them.

For staying nights away etc. you will not be able to claim a per diem as suggested earlier but if you actually paid for a hotel room or B&B you could claim that cost.
 
dam099 said:
Do you use the broadband in some way in your business as a DJ? If you can't justify it, it will be disallowed.
.
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Yes i need to download music from i tunes etc for weddings, its common these days for couples to paick their own playlists and music has to be sourced. Also i need e mail access so i can keep in touch with couples, an example of whcih is a couple living in oz and coming home to get married, they e mail the whole time because of time differnce etc.

i just want to get these things out of the way so i'm not wasting time with an accountant, time is money and if he/she is getting paid by the hour i need to focus on the important issues, these are just side questions i would throw at them.

but thanks to all of you for answering to the thread.

i know i have purchased, lighting, mics etc and they are all fine, its the smaller things i need to find out about, like anyone i just want to keep my tax bill down
 
Ron Burgundy said:
i just want to get these things out of the way so i'm not wasting time with an accountant, time is money and if he/she is getting paid by the hour i need to focus on the important issues, these are just side questions i would throw at them.
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IMHO if you're going to pay an accountant to file your returns then there is no way they should be charging you an hourly rate for some tax advice on startup. Find an accountant, tell them what work you'll be giving them and then arrange a meeting to discuss it. Be sure to get their fees for the year and walk away from any that try to suggest an hourly rate.
 
thanks, i also bought a van last year now its mainly used for my dj work but i use it to get to the train station as well, i take it a portion of the diesel and up keep with by writin off, i still have the invoice so if i have to i'll say irt was a business purchace, depends on the benefit in kind.
 
Going by Revenue's guidelines, if you can proove that an expenses was wholly, neccessarily and exclusively business related, then claim it. And by prove it, I mean be able to prove it in an audit!

On their website, they give a outline as follows:


What expenses can I claim for?
You can claim for any business expenses which you have incurred in order to earn your profits. These expenses are normally referred to as revenue expenditure.

Revenue expenditure is your day to day running costs and covers such items as:

  • Purchase of goods for resale
  • Wages, rent, rates, repairs, lighting and heating etc.
  • Running costs of vehicles or machinery used in the business
  • Accountancy fees
  • Interest paid on any monies borrowed to finance business expenses/items
  • Lease payments on vehicles or machinery used in the business
If you are registered for VAT the expenses you claim should be exclusive of VAT.


What expenses can’t I claim for?The general rule is that you cannot claim for any private expenses i.e.
  • Any expense, not wholly and exclusively paid for the purposes of the trade or profession
  • Any private or domestic expenditure e.g. your own wages, food, clothing (except protective clothing), income tax etc.
  • Business entertainment expenditure i.e. the provision of accommodation, food, drink or any other form of hospitality.
You cannot deduct capital expenditure in calculating your taxable profits, however you can claim what are known as capital allowances on certain expenditure.


What about expenses which are partly for business and partly private?Where expenditure relates to both business and private use, only that part which relates to your business will be allowed. Examples of such expenditure are rent, electricity, telephone charges etc., where the premises involved is used partly for business and partly for private purposes. These expenses will need to be apportioned to exclude the private use.
 
Ron Burgundy said:
i know i have purchased, lighting, mics etc and they are all fine, its the smaller things i need to find out about, like anyone i just want to keep my tax bill down
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Be aware that equipment may not necessarily be able to claimed in full in the year they are incurred as expenses but may be regarded as capital expenditure which is written off over a number of years by claiming capital allowances. e.g a lighting rig would likely be claimed over a number of years as capital allowances but replacement bulbs could be written off as expenses as incurred.
 
one final thing, concerning transport, would i claim an amount per mile or a fixed amount, say x for going to dublin, y for tullamore
 
You really would be better off getting independent, professional advice from an accountant/tax advisor for example. The cost of such a professional service will most likely pay for itself in savings made that you would otherwise not be aware of. Perhaps the cost can also be written off too - I'm not sure? In any case you will probably need an acountant to do your annual returns/books so no harm in getting a good one now and establishing a relationship with them.
 

Yes the cost of professional fees for an accountant/tax advisor would be deductible from your business earnings.
 
made an appointment, i'm taking monday off work, meeting accountant and opening my business bank account. i was talking to the bank manager as well and he is offering me 2 years free banking. so all going well with this years and last years accounts and my day job a mortgage should be sorted by the end of the year.

many thanks for all your posts
 
with people concerning vat, that is the bechmark for your tax return at the end of the year.
everything you claim vat on, you can claim for
over and above that all your visa receipts should be kept and recorded to give to your accountant at end of year
 
Just to point out

Only applies to employees and co directors, does not apply to self employed
 

The majority of accountants calculate their fees based on an hourly rate, which is assigned to each employee depending on experiance...its standard practice. So the fee is calculated based on the number of hours spent completing the accounts rather than a figure pulled out of the air.
 
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