Self employed money management and allowable expenses - what's what?
shark_90 started this topic @ 14:12 on 07/04/2009
I'm just starting out as self employed, I'm registered with HMRC and I have two business accounts in the correct names.
The question is, when it comes to money, what's what? I know as I'm a sole trader all the money is mine and it all goes on my tax return as my income etc.. how should I account for what's what? Should I be putting money in the business account for the sake of it being there, and then paying for things out of that account when it's for the business?
I am using equipment for this self employment that I already had.. how do I account for that? If I have an invoice/reciept then I can understand it but what about my two year old laptop?
The other big question I have is about allowable expenses and mainly around cars. I have two cars and the primary one gets used for my employment and I claim business mileage back from my employer. I will be using the same car for car shows (the self employment is in the Automotive accessories industry) and demonstration and the like... how can I account for that and what is an allowable expense?
The things I can think of are:
Accessories (Wheels/add-ons etc)
Wear and tear items (tyres etc)
Car loan (although this isn't necessarily clear cut as I might refinance it at a lower rate)
How do I account for these and what is allowable? It sort of makes sense that I claim back a mileage rate but is that going to affect my ability to claim for things like a set of wheels?
I would appreciate any help that I can get.. I don't have an accountant yet but I guess I will need one?
Cheers
Interesting or important topic? Please click "vote topic higher" if you think so.
RE: Self employed money management and allowable expenses - what's what?
Shane101 | 09/04/2009 02:18 PM
Hi ya,
You should not worry bout these things if you say you need an account, then get one and get them to do all the hard work coz thats why your gonna be paying for.
Thats what I do with my accountant, he's pretty good, you really need to ask an accountant so its just easier from the beginning.
If you need one, heres his email, you can give them a bell raihan@bbkca.com
good luck
shane