Setting up as a business

Freakbro said:
IIRC someone tried this, maybe a journalist claiming it was research expenses?

I think it got kicked out :p (cant remember the details tbh)
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there is a limit, just pick a club which issues receipts under a different and more discrete registered company name to the active trading name shown in pink neons above the door.
 
anksta said:
see these are the sort of things I was talking about in the first place when I made the thread.

Now we're getting to some benefits of this.

I work from home, only travelled to London for work once (don't have any receipts or anything for that although does email count), use the computer and the internet all day so that's power and internet right?

Eat at home, that's food, print the occasional invoice that's paper right?
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minus food all of that should be allowable

you will need to find a fair way of calculating business usage (easy if you have a dedicated home office as you can say that is 1 room out of 6 or whatever (excluding kitchen, bathrooms, toilets) and then apportion 1/6 of the costs of running the home

You can't just claim all power but the fair proportion
 
Freakbro said:
Because generally VAT is paid quarterly, so he is "saving" the VAT due ready to pay each quarter, and probably earning a little interest on it.
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mattyg said:
Its because you pay your VAT due every quarter.

So I put it into a seperate account so A: I dont spend it B: it gives a few quid in interest
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I see, I thought you meant you were sticking it there long term for some reason :p.
 
Right I'm just gonna charge them the 600 quid and say I'm not VAT registered if they ask.

Thanks for the help everyone, I'm sure this thread will be brought back to the screaming forefront the next time I need some help.

Gonna start keeping track of everything I do that's remotely related to work from now on.

Gonna go post this back now. Cheers
 
anksta said:
If I keep up my current rate it's not going to be much, maybe 12 or 15k.
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thing to watch with this your taxable income will include anything you earn from other work (if you are being paid for your writing or radio stuff) your 'business' is not a tax paying entity as a sole trader, you are.

Also I really would recommend putting aside a slice of everything you earn. As you may enjoy spending everything now up to the income tax threshold but then you are going to have to put aside more. Why not average it out?
 
Skidder said:
you will need to find a fair way of calculating business usage (easy if you have a dedicated home office as you can say that is 1 room out of 6 or whatever (excluding kitchen, bathrooms, toilets) and then apportion 1/6 of the costs of running the home
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Do you think anyone then lets the Council know they are running a business from home and gets that same proportion changed to Business Rates instead of Council Tax?....;)



(For exactness sake of being on the internet, there probably is SOMEONE who does this :p)
 
Freakbro said:
Do you think anyone then lets the Council know they are running a business from home and gets that same proportion changed to Business Rates instead of Council Tax?....;)



(For exactness sake of being on the internet, there probably is SOMEONE who does this :p)
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You have to careful of that too as when you sell your house a portion of it will be liable for tax
 
mrk1@1 said:
you can claim for food or build it into an all in one overhead rate that covers every aspect of your home working, usual scr of 1.15-1.35 would be reasonable if you have set an hourly/daily charge out rate.
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My accountants are whiter than white and there is no way in hell they let me include any food unless I'm travelling oversees
 
Skidder said:
thing to watch with this your taxable income will include anything you earn from other work (if you are being paid for your writing or radio stuff) your 'business' is not a tax paying entity as a sole trader, you are.

Also I really would recommend putting aside a slice of everything you earn. As you may enjoy spending everything now up to the income tax threshold but then you are going to have to put aside more. Why not average it out?
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Especially when you end up paying your "expected tax" for next year up front.
Well half of it.
 
No offence OP but it sounds like you are someone who *needs* an accountant to deal with this stuff.

You are only going to get yourself in a mess which will cost you more later for an accountant to sort it out. I think you should get one as soon as you can.
 
Robbie G said:
You only need to be away from your place of business to reclaim the VAT on food, not out of the country :p.



Why have you posted the same link twice?
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Because the same question or answer got posted twice


wholly and exclusively is the key word to claiming anything as a business expense.
 
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