solly40 started this topic @ 10:36 on 05/04/2006
Hi,
I am employed full time and also had to set up us a Sole Trader 11 months ago for the odd bit of web design/hosting work which comes my way. To date, I have never had to file a self assessment for my full time job.
My Sole Trader accounts are very simple, with sales purely from my incoming design jobs and my only expenses are the 70% that I'm taking as salary.
Firstly, will the Self Assessment be purely based on my part time business, or will it incorporate my full time work too? Also, if I ever ceased the Sole Trading, would I still have to Self Assess each year for my full time work?
I'm due my first Self Assessment any day now, and want to know if I can claim travel expenses for visits to my clients?
I have a business account, but whenever I have made any of these journeys, I haven't paid for my fuel via the business account - I've just been travelling at my personal expense. Does this mean I won't be able to claim travel expenses?
Grateful for any comments.
RE: First Self Assessment
James Smith | 05/04/2006 04:06 PM
When you see the tax return you will see that all your incomes are reported, ie employment, self employment, savings etc. If you are a basic rate tax payer than when you cease your sole trade, then you won’t need to do any more tax returns.
What you are taking as a "salary" is not an expense for tax purposes, but you can certainly claim travel etc. There are quite complicated rules about what you can cant/claim - for example for using your own car there is the option to use mileage allowances rather than claiming actual costs.
I know I am biased but it it is a simple return it really won’t cost a lot to have it completed professionally, and often the fee is re-cooped in tax savings. It also means you don’t have to worry about whether you have done it correctly or not and spend hours trying to fill the sodding form in. You may also find that once you have one or two completed you can do them yourself ongoing.
The new edition of my book "how to complete your tax return" for 2005/6 will have a sole trader section but like any guide of its type can only make so many suggestions as to what is deductible.
Hope this helps,
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
