Self-Employed allowable expenses

[Salt]

Hello, I have a question regarding some of the allowable expenses.

1) How do you count your mileage expenses? Do you count from the moment you leave your home or from your first job (flat rate)? I am a bit confused because it might look like commuting, right?
2) Do you count any % of the property for the window cleaning business? What do you do?

I appreciate your response and advice.

 

[Part Timer]

I've always done it from the house, if you're claiming mileage allowance you would need to keep an accurate, daily, log.

If you have a dedicated room as an office for your business you are allowed to claim a percentage of your household bills. I think if you have say 5 rooms, 2 beds, living room, bathroom and kitchen you can claim 20%. Don't know if this includes, rent, water, council tax as well as gas and electric.

Ring HMRC and check but good luck getting through today.

 

[P4dstar]

if you're claiming mileage allowance you would need to keep an accurate, daily, log.

I've always found this such an effort. My work van is for work, I've always just put all the cost through and if the tax man ever wants to see it I have a car I use.

 

[Part Timer]

I've always found this such an effort. My work van is for work, I've always just put all the cost through and if the tax man ever wants to see it I have a car I use.

I have a van that I use for 2 totally separate businesses and do circa 20k miles a year so the only way I can do it is to own it personally and charge the companies mileage.

 

[P4dstar]

I have a van that I use for 2 totally separate businesses and do circa 20k miles a year so the only way I can do it is to own it personally and charge the companies mileage.

Yeah that makes perfect sense. Gives you some flexibility too. I wonder if I would be better with my 2 new vans retaining ownership and renting them back to the business. A local cabbie suggested this to me, Its what he does with his Taxi. All seemed too confusing for me.

 

[Part Timer]

Yeah that makes perfect sense. Gives you some flexibility too. I wonder if I would be better with my 2 new vans retaining ownership and renting them back to the business. A local cabbie suggested this to me, Its what he does with his Taxi. All seemed too confusing for me.

Don't know, you wouldn't be able to claim the VAT back and probably need specialised insurance as most insurance companies stipulate not to be hired out.

Speak to your accountant

 

[dazmond]

Hello, I have a question regarding some of the allowable expenses.

1) How do you count your mileage expenses? Do you count from the moment you leave your home or from your first job (flat rate)? I am a bit confused because it might look like commuting, right?
2) Do you count any % of the property for the window cleaning business? What do you do?

I appreciate your response and advice.

Keep it simple and don't count mileage expenses!

I just save my diesel receipts and any servicing,repairs,parts to do with my van and put them through.

Much easier!

 

[Chris34]

Keep it simple and don't count mileage expenses!

I just save my diesel receipts and any servicing,repairs,parts to do with my van and put them through.

Much easier!

I'm sure it is much easier, but you can only do that if the van is solely used for the business. For anyone using the van for both personal use and work use then it wouldn't be allowed.

I start it from the house because it's not commuting, essentially the day starts at home as that's where the office is, so I have to leave the office to go and do a job.

It's probably one of the most time consuming parts of doing the accounts.

For home use as an office, I have used the 20% rule. Basically I have 3 rooms and a garage. One room is dedicated as the office for the business. I used a quarter of the garage for storing the kit and making purified water with a 300 litre water butt inside the garage. I also use approximately £50 per month on water as my water bill used to be under £50 and it's now over £100. There is also the cost of my mobile phone line provider which is £20 per month. Then there is heating for when I'm working in the office.

It's up to the individual how much you want to estimate the cost is but you have to be reasonable. For me I just say £200 per month, there will be those who say that's too much but I'd argue that I can prove it should be more. I've always looked at it with the view of being able to defend it and for me I'd take it all the way through the courts and defend it vigorously, try finding me an office with heating, a phone line, internet, secure storage space for all my kit, free water supply for less than £50 per week. I know they don't look at it that way but that's how I look at it and if they don't like it well F$&£ 'em! enough is enough, I'd give them a right fight.

 

[dazmond]

I'm sure it is much easier, but you can only do that if the van is solely used for the business. For anyone using the van for both personal use and work use then it wouldn't be allowed.

I start it from the house because it's not commuting, essentially the day starts at home as that's where the office is, so I have to leave the office to go and do a job.

It's probably one of the most time consuming parts of doing the accounts.

For home use as an office, I have used the 20% rule. Basically I have 3 rooms and a garage. One room is dedicated as the office for the business. I used a quarter of the garage for storing the kit and making purified water with a 300 litre water butt inside the garage. I also use approximately £50 per month on water as my water bill used to be under £50 and it's now over £100. There is also the cost of my mobile phone line provider which is £20 per month. Then there is heating for when I'm working in the office.

It's up to the individual how much you want to estimate the cost is but you have to be reasonable. For me I just say £200 per month, there will be those who say that's too much but I'd argue that I can prove it should be more. I've always looked at it with the view of being able to defend it and for me I'd take it all the way through the courts and defend it vigorously, try finding me an office with heating, a phone line, internet, secure storage space for all my kit, free water supply for less than £50 per week. I know they don't look at it that way but that's how I look at it and if they don't like it well F$&£ 'em! enough is enough, I'd give them a right fight.

I only use my van for work as I've got a car too for leisure. I like to keep my work life separate as much as possible.

 

[Part Timer]

I'm sure it is much easier, but you can only do that if the van is solely used for the business. For anyone using the van for both personal use and work use then it wouldn't be allowed.

My Accountant has warned me that if your vans insurance has domestic and pleasure included they will automatically assume you use it personally

 

[Chris34]

I only use my van for work as I've got a car too for leisure. I like to keep my work life separate as much as possible.

I just use the van as I haven't got anywhere to store a car and I'm not interested in having a car I just see them as a mode of transport which the van does. Eventually I wouldn't mind getting a sports car but as time ticks by it's becoming less and less appealing (sounds like more work and stress with upkeep, lol).

 

[Crystalalan]

I just use the van as I haven't got anywhere to store a car and I'm not interested in having a car I just see them as a mode of transport which the van does. Eventually I wouldn't mind getting a sports car but as time ticks by it's becoming less and less appealing (sounds like more work and stress with upkeep, lol).

You could get an MX 5. They really reliable and cheap to run. I promise I will hold off with the hairdresser jokes

 

[dazmond]

I just use the van as I haven't got anywhere to store a car and I'm not interested in having a car I just see them as a mode of transport which the van does. Eventually I wouldn't mind getting a sports car but as time ticks by it's becoming less and less appealing (sounds like more work and stress with upkeep, lol).

I get a brand new car every 3 years(on lease). I'm currently driving a black cupra formentor. I absolutely love it! I need a car for taking the missus out,going away for weekends and gigging (for my drums). No room in my van.Plus I don't want to be driving around in my van with half a ton of water in the back unless I'm working.

It's my little present to myself for sticking at window cleaning for so long!