equipment , tax return and receipts

I claimed for my CPu which i got free but then again my accountant sorted it. I had no receipts for this and I'll probably never know whether or not I got anything for it, all I know is that in my first year tax return, they owed me money. This is the area where I lack in because I don't realy care about it to be honest, but thats my fault, I just let the accountant do his magic. Sorry if this is no help whatsoever! [][]
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The things I have to do.

Thank Rude for the reply..... well its a start!!
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Are you aware of all that you can claim for from working from home? i take it you are working from home.
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The things I have to do.

Hi Rude I have a full time job and this is part time business so i dont know if i can claim for working at home a few hours per day??? j
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John, In general terms if you don’t have the receipt for an item, you can still include it as a business expenses, however you should retain some "second best" evidence such the payment going through your bank/credit card account. As a sole trader it is irrelevant whether it has your name on it or not. In general it is far easier to run a small business bank account so that all transactions go through it, that muddle it all up with your personal banking. Something like the Abbey Nationals "free banking for ever" account is often ideal for the small part-time business, as its free! In terms of equipment you need to be careful what you claim. PC equipment is normally an asset, and as such you claim "capital allowances" as opposed to the simple cost of the equipment as with normal expenses. Fortunately for 2003/4 there where 100% capital allowances available on IT equipment. If the equipment that you don’t have receipts for had already been purchased for private usage. eg if we are talking about a 3 year old PC, there isn’t going to me any real value to it, and I personally wouldn’t make a claim. You have to adjust out for personal usage, eg if you buy something for £100 and use it 25% for business, only £25 of that cost can be considered a business expense. Regarding home office expenses, yes you can claim specific costs (eg extra phone costs) and some shared expenses but if you already have a full time job the amount you can claim is going to be minimal and again is probably not worth the hassle of trying to work it all out. If you need some help sorting out your return, then please let me know. Regards,
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James Smith
Chartered Accountant
www.jamesesmith.co.uk
01235 536 773

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Your indispensable guide to Small Business Bookkeeping, Self-Assessment & VAT

thanks james for all you help - much appreciated! maybe give you a shot in the future if i get stuck!
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