Any Accountants/tax specialists/self employed?

[-Jonesy-]

Sorry if this is on the wrong board but it didn't seem like a technical help kinda thread.
I've recently made a switch to freelance work and registered myself as self employed. Was wondering if anyone here is either an accountant or has some experience of self assessment as I've a couple fairly easy questions about expenses that I could do with clearing up and have got mixed answers from all the various sources of information on the net.
If you do/are, holla back yo!

[CropleyWasGod]

Sorry if this is on the wrong board but it didn't seem like a technical help kinda thread.
I've recently made a switch to freelance work and registered myself as self employed. Was wondering if anyone here is either an accountant or has some experience of self assessment as I've a couple fairly easy questions about expenses that I could do with clearing up and have got mixed answers from all the various sources of information on the net.
If you do/are, holla back yo!

Holla.

[lapsedhibee]

Sorry if this is on the wrong board but it didn't seem like a technical help kinda thread.
I've recently made a switch to freelance work and registered myself as self employed. Was wondering if anyone here is either an accountant or has some experience of self assessment as I've a couple fairly easy questions about expenses that I could do with clearing up and have got mixed answers from all the various sources of information on the net.
If you do/are, holla back yo!

No, you can't claim back the cost of a Lady Of The Night if you have to stay overnight somewhere for work.

Unless the work is writing a book about Ladies Of The Night.

[-Jonesy-]

Holla.

Great stuff.

So I just wanted some clarity on claiming expenses related to travel and home office space. I am a freelance chef and use my phone to get work so can I write off part of my monthly bill? Also I have been told I can write off a percentage of my rent as I use my home as an office to maintain my accounts and contact clients from there also. I have heard that it's a flat rate for a year but have also heard that it's dependent on how many rooms I have in my house and as a percentage of that.

Regarding travel, I have no fixed place of work so must travel to various different places. I'm fairly certain I can claim the standard 45p per mile in my car but have also heard it's only the journey to work and not the return that can be written off.

If you know the answers to this, or can remember just point me to the info online, apart from the pretty confusing government site. I'd be super happy.

[-Jonesy-]

Also sorry for the late late reply, I've been working.

[CropleyWasGod]

Great stuff.

So I just wanted some clarity on claiming expenses related to travel and home office space. I am a freelance chef and use my phone to get work so can I write off part of my monthly bill? Also I have been told I can write off a percentage of my rent as I use my home as an office to maintain my accounts and contact clients from there also. I have heard that it's a flat rate for a year but have also heard that it's dependent on how many rooms I have in my house and as a percentage of that.

Regarding travel, I have no fixed place of work so must travel to various different places. I'm fairly certain I can claim the standard 45p per mile in my car but have also heard it's only the journey to work and not the return that can be written off.

If you know the answers to this, or can remember just point me to the info online, apart from the pretty confusing government site. I'd be super happy.

Taking each in turn:-

1. you can claim your phone bill to the extent that you use it for work. Thus, if you use it 75% for work, that's the amount you claim.

2. again, you can claim an amount for the use of your home. The classic way to do it is to take 1 room in your house as your "office". If that's one room out of 5, say, you can claim 20% of your home electric, gas and insurance bills. However, that might set you up for Capital Gains Tax problems when you sell the house. It's easier to claim a flat-rate. Use your domestic bills as a rule, but £15-£20 per week is fairly common.

3. I would suggest that your business base is your home, therefore all travel is allowable, there and back. However, you'd be pushing that a bit if, say, you got a 3-month contract, travelling daily. In that event, maybe claim half of it.

Hope this helps. Feel free to ask me more, here or in PM. :agree:

[CropleyWasGod]

No, you can't claim back the cost of a Lady Of The Night if you have to stay overnight somewhere for work.

Unless the work is writing a book about Ladies Of The Night.

That would depend on whether it's a research-related **** or a personal one.

[Hibrandenburg]

That would depend on whether it's a research-related **** or a personal one.

:tee hee:

[-Jonesy-]

Taking each in turn:-

1. you can claim your phone bill to the extent that you use it for work. Thus, if you use it 75% for work, that's the amount you claim.

2. again, you can claim an amount for the use of your home. The classic way to do it is to take 1 room in your house as your "office". If that's one room out of 5, say, you can claim 20% of your home electric, gas and insurance bills. However, that might set you up for Capital Gains Tax problems when you sell the house. It's easier to claim a flat-rate. Use your domestic bills as a rule, but £15-£20 per week is fairly common.

3. I would suggest that your business base is your home, therefore all travel is allowable, there and back. However, you'd be pushing that a bit if, say, you got a 3-month contract, travelling daily. In that event, maybe claim half of it.

Hope this helps. Feel free to ask me more, here or in PM. :agree:

Yup, huge help thank you. 2 more things if I may :)

I split rent with my gf, so does the percentage claimed for a home office come from my half only or as a whole.

And, slightly silly question but, I was once told I could claim dining out in restaurants as "research" due to the nature of my work. Any idea if there is any truth in this?

[CropleyWasGod]

Yup, huge help thank you. 2 more things if I may :)

I split rent with my gf, so does the percentage claimed for a home office come from my half only or as a whole.

And, slightly silly question but, I was once told I could claim dining out in restaurants as "research" due to the nature of my work. Any idea if there is any truth in this?1.it would be the percentage of your share of the cost.

2..there's scope for that, sure, but don't go OTT. If you ever get an enquiry from HMRC, you'd need to be able to demonstrate that the research was genuine.

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[-Jonesy-]

1.it would be the percentage of your share of the cost.

2..there's scope for that, sure, but don't go OTT. If you ever get an enquiry from HMRC, you'd need to be able to demonstrate that the research was genuine.

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Good stuff, thanks a lot for your help, are you an accountant by trade?

[CropleyWasGod]

Good stuff, thanks a lot for your help, are you an accountant by trade?By reputation, apparently [emoji16]

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[snooky]

By reputation, apparently [emoji16]

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There's no accounting for taste apparently. :greengrin

[lapsedhibee]

That would depend on whether it's a research-related **** or a personal one.

Or a bit of both. That'd be a conversation with an inspector - what proportion of this expense was incurred wholly and exclusively for work purposes, and what proportion personal use? I imagine it'd be best to keep a record of a series of encounters and claim on the basis of an average proportion.

[CropleyWasGod]

Or a bit of both. That'd be a conversation with an inspector - what proportion of this expense was incurred wholly and exclusively for work purposes, and what proportion personal use? I imagine it'd be best to keep a record of a series of encounters and claim on the basis of an average proportion.You mean a double-entry record?

[Alfiembra]

You mean a double-entry record?

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no back door accounting methods I hope

[Onceinawhile]

1.it would be the percentage of your share of the cost.

2..there's scope for that, sure, but don't go OTT. If you ever get an enquiry from HMRC, you'd need to be able to demonstrate that the research was genuine.

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I think you would be struggling to class eating out as wholly and exclusive. If away from home i can see it from a subsistence point of view, but not convinced in this scenario.

[CropleyWasGod]

I think you would be struggling to class eating out as wholly and exclusive. If away from home i can see it from a subsistence point of view, but not convinced in this scenario.

If you were an HMRC Inspector, at this stage I would offer to arm-wrestle you. :greengrin

I think there is a case. If I were a chef, I'd want to know how other chefs were "doing things". In that light, I don't see a problem. If I was doing it every week, and going to my favourite restaurant every time, then I wouldn't expect the cost to be allowable. But, every now and then, IMO it's acceptable. The important trick is to make a note of when these visits take place, and record "why".

As a similar example, I have had many musician clients who (again without going over the top) claim the cost of gig tickets. Thus far, that has never been refused.

[snooky]

By reputation, apparently [emoji16]

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But the way, do you have any idea how much an accountant would charge for a very basic tax submission for one person (PAYE & no business involved)? Ball park figure? £50/£100/£200/£500? Just curious.

[CropleyWasGod]

But the way, do you have any idea how much an accountant would charge for a very basic tax submission for one person (PAYE & no business involved)? Ball park figure? £50/£100/£200/£500? Just curious.

Were I still in that white-hot pressure-cooker of practice management, I would have said that sounds like a £100-£200 job. However, I was often told I was too cheap... and not just in my personal life. Depending where you go, and the palatiality (is that a word?) of their offices, you might be charged double that.

[snooky]

Were I still in that white-hot pressure-cooker of practice management, I would have said that sounds like a £100-£200 job. However, I was often told I was too cheap... and not just in my personal life. Depending where you go, and the palatiality (is that a word?) of their offices, you might be charged double that.

Thanks, CWG. That was the range I kinda expected.

[Onceinawhile]

But the way, do you have any idea how much an accountant would charge for a very basic tax submission for one person (PAYE & no business involved)? Ball park figure? £50/£100/£200/£500? Just curious.

If you only have paye you're going to be unlikely to need to file. Fwiw my firm charge a minimum of 350 per tax return.

[Onceinawhile]

If you were an HMRC Inspector, at this stage I would offer to arm-wrestle you. :greengrin

I think there is a case. If I were a chef, I'd want to know how other chefs were "doing things". In that light, I don't see a problem. If I was doing it every week, and going to my favourite restaurant every time, then I wouldn't expect the cost to be allowable. But, every now and then, IMO it's acceptable. The important trick is to make a note of when these visits take place, and record "why".

As a similar example, I have had many musician clients who (again without going over the top) claim the cost of gig tickets. Thus far, that has never been refused.

I understand where you are coming from and i certainly have authors who buy books for research purposes, but I think the subsistence aspect of the food would snooker anyone claiming it.

On the other hand, most accountants would let it through. Wether the revenue would though..

[lapsedhibee]

palatiality (is that a word?) of their offices

I'd go back in time a bit and use palaciousness, as that has the advantage of rhyming with spaciousness and salaciousness. You never know when you might be required to pull out a limerick. :nerd:

[-Jonesy-]

I understand where you are coming from and i certainly have authors who buy books for research purposes, but I think the subsistence aspect of the food would snooker anyone claiming it.

On the other hand, most accountants would let it through. Wether the revenue would though..
I can claim cookbooks as an expense?

This is great news

[lapsedhibee]

I can claim cookbooks as an expense?

This is great news

Don't forget a portion of your TV licence, as it's shirley essential that you keep up with what Nigella etc're telling Britain what and how it should be eating.

[CropleyWasGod]

Don't forget a portion of your TV licence, as it's shirley essential that you keep up with what Nigella's telling Britain what and how it should be eating.

For those of us who watch Nigella with the sound down, that is classed as personal entertainment. :greengrin

[lapsedhibee]

For those of us who watch Nigella with the sound down, that is classed as personal entertainment. :greengrin

Still worth claiming a portion of the sound component, though, as that constitutes exactly half of the cost of a TV licence. (Since blind folks get a 50% reduction,)

[CropleyWasGod]

Still worth claiming a portion of the sound component, though, as that constitutes exactly half of the cost of a TV licence. (Since blind folks get a 50% reduction,)

Even if the "inspiration" she's giving me has naff-all to do with cooking? :greengrin

[stoneyburn hibs]

Reading this thread it seems I'm paying a little too much for my accountant. £408 per year.

[CropleyWasGod]

Reading this thread it seems I'm paying a little too much for my accountant. £408 per year.

That sounds like £340 plus VAT.

Depending on how complicated your affairs are, it's probably not OTT. Sometimes, too, there's value in using someone that you feel comfortable with.

[lapsedhibee]

Even if the "inspiration" she's giving me has naff-all to do with cooking? :greengrin

I wonder if she gives her occupation as cook or sex worker when she fills out her SA form, the filthy slag.

[CropleyWasGod]

I wonder if she gives her occupation as cook or sex worker when she fills out her SA form, the filthy slag.

In my experience, HMRC is full of narrow-minded, judgmental people who stigmatise and pigeon-hole people based on what they put on their Tax Return.

For that reason, she would be best advised to omit her name entirely.:greengrin





(apologies to any HMRC staff looking in, who I'm sure are lovely people. The gag wouldn't work otherwise...)

[Moulin Yarns]

If you were an HMRC Inspector, at this stage I would offer to arm-wrestle you. :greengrin

I think there is a case. If I were a chef, I'd want to know how other chefs were "doing things". In that light, I don't see a problem. If I was doing it every week, and going to my favourite restaurant every time, then I wouldn't expect the cost to be allowable. But, every now and then, IMO it's acceptable. The important trick is to make a note of when these visits take place, and record "why".

As a similar example, I have had many musician clients who (again without going over the top) claim the cost of gig tickets. Thus far, that has never been refused.

Cheers for the info CWG. I dye and spin wool and sell at craft events. Does this mean I can claim back entrance to specialist wool events, and travel as well.

New York here I come https://sheepandwool.com/

[CropleyWasGod]

Cheers for the info CWG. I dye and spin wool and sell at craft events. Does this mean I can claim back entrance to specialist wool events, and travel as well.

New York here I come https://sheepandwool.com/

If you actually declare the income, you can.

The reason I say that is that many people do what you do as a hobby, for the fun. In that light, they might make a consistent "loss". HMRC view that as "hobby farming", and won't allow those losses to be set off against other income. Conversely, they don't require the income to be declared.

However, if what you do is a trade (and the definition of that is not set in stone), then those events may be allowable. A trip to New York? You might get away with some of the cost, but if there's a personal element (and I'm sure there would be), definitely not all.

[Moulin Yarns]

If you actually declare the income, you can.

The reason I say that is that many people do what you do as a hobby, for the fun. In that light, they might make a consistent "loss". HMRC view that as "hobby farming", and won't allow those losses to be set off against other income. Conversely, they don't require the income to be declared.

However, if what you do is a trade (and the definition of that is not set in stone), then those events may be allowable. A trip to New York? You might get away with some of the cost, but if there's a personal element (and I'm sure there would be), definitely not all.

I registered as a sole trader to keep it above board, but have been offsetting income against the equipment I need to buy, up to this year. Turnover this year is not huge, but is about 4x that of previous years so I will be liable for some tax. BOO!

[stoneyburn hibs]

That sounds like £340 plus VAT.

Depending on how complicated your affairs are, it's probably not OTT. Sometimes, too, there's value in using someone that you feel comfortable with.

Thanks, it is £340 + vat and I've been very satisfied with their performances over the last few years 😁