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Putting A Round Through Tax

mak2503

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Over the past year I have been paying £600 each month for a large round. The round has all been paid off now.

Does anyone have any idea how I will put this through tax?

In total I paid £7000 for the round and equipment but I have been told by my bookkeeper that she is not sure if we can put it through on the tax return.

Thanks in advance.

 
You cannot claim monies paid for goodwill and any money with a receipt that includes the words goodwill will have to be written off as a loss if the receipt was to read equipment then you may have a chance of claiming something if that makes sense doesn't quite work the same when you sell though

How much work did you gain for the £7000 mate

 
I have a big loan for customers/van and equipment. I get all my interest back in tax from the loan, The other is classed as drawings . soo just say £500 loan of which £50 is interest, then £450 is classed as drawings. The £50 is tax deductable.

 
I have a big loan for customers/van and equipment. I get all my interest back in tax from the loan, The other is classed as drawings . soo just say £500 loan of which £50 is interest, then £450 is classed as drawings. The £50 is tax deductable.
Just so I have this right in my head as now think I have it wrong drawings meaning wages against taxable allowance and if your tax allowance is say £8150 then you have lost £5400 of the allowance on the 12 £450 repayments and you don't pay any tax on the interest paid so you can earn£2750 or £229.16 a month before you start paying tax on the income national insurance contributions being a separate equation

 
I have a big loan for customers/van and equipment. I get all my interest back in tax from the loan, The other is classed as drawings . soo just say £500 loan of which £50 is interest, then £450 is classed as drawings. The £50 is tax deductable.
What size loan did you take out to build your business .

 
I'd get an accountant for this. Probably cost about an hour of their time but you can save more than that on tax.

 
Just so I have this right in my head as now think I have it wrong drawings meaning wages against taxable allowance and if your tax allowance is say £8150 then you have lost £5400 of the allowance on the 12 £450 repayments and you don't pay any tax on the interest paid so you can earn£2750 or £229.16 a month before you start paying tax on the income national insurance contributions being a separate equation
This is what my accountant done with my books last year.
 
It's always better to lease equipment because the whole payment is tax deductible. There's then one final payment at the end of the lease which transfers ownership to you.

So if you were paying £500 a month it would all be tax deductible and go through the books so you'd claim £6000 per year as a business expensive.

Of course you can't do this if you're buying work. You can however claim the cost of a canvasser who finds work for you because you're paying for a service and not goodwill.

 
Ouch !!! I suppose its only £107 a week you gotta make to pay it back and im sure you can manage that in a day easy .

18k? Hmm u got a few vans on the road
Only the one van. But as you say, its paid within a day.I was very naive when i brought the business, but to be fair, i work 4 days a week, i pay someone to work fridays, I only do 5 hours a day. So all still very easy.

In 3 1/2 years it will be all paid, which will feel like a payrise haha.

Bare in mind, my hubby pays the morgage and bills, so my money is just extra.

 
You can however claim the cost of a canvasser who finds work for you because you're paying for a service and not goodwill.

Oh really?

 
I paid £4000 for 4 rounds, I have a receipt for the £4000 ...I assume I will be ok to put this forward in my tax return ?
I would be pretty sure the rounds you bought we're canvassed and that's how your receipt would read obviously the tax man would know the x rate of a canvasser wink nudge
 
From reading the tax site it clearly reads no allowance for goodwill payments but allowances are available for things like training and equipment and office supplies and canvassing(research and development)so therefore to give your accountant a chance of claiming allowances it's important to get the receipt broken down into what it includes in the sale so if a round is £10000 for instance break the cost of the round down via the extras trad gear wfp equipment round software days of training showing round the round the goodwill payment would obviously not be the full £10000 takes longer to get back the money if you pay tax on it different accountants have different views on how they read the rules amazingly this is not conning the system it's just words on a receipt in the tax game the receipt is gospel

 
I've yet to use a canvasser but as far as I'm aware and the post above seems to agree, you can pay for a canvassers services and it will be tax deductible because you are paying for a service not for goodwill. It's the same as getting an employee to do it, his wages are still a business expense or in other industries, employing salesmen.

Dave

 
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