More Tax Advice UK Needed ;) Sorry

graphicnut

graphicnut

Supreme Member
Joined
Feb 21, 2008
Messages
1,330
Reaction score
245
Domains/ Hosting etc etc are they clased as Expenses?
or are they something else? I'm never too sure, ive put them under "Materials Purchased" which comes under "less cost of sales" is this correct??

Kind Regards hehe
 
Advertise on BHW
Domains should be capital expenditure, hosting wil be direct costs.

In terms of working from home, ensure your insurance is aware as it can invalidate any home insurance claim.

Apportion realistic costs for your venture# elec, broadband,phones,hosting,stationary - dont take the "P!ss" and you should be fine.

In terms of materials purchased, it depends on how your chart of accounts are set up but in theory for your self assessment these are direct costs as they relate directly to what you are doing in your business - elec costs etc are overheads.

Hope this helps.
 
Yes, I put it under 'cost of sales'

Don't forget you can add every service etc you have purchased here on BHW and paid for via paypal etc. You can even claim the Paypal fees as 'cost of sales' if you have the time and patience to work it out.

Sounds like you decided to declare in the end then? Bummer tax isn't it!
 
That's what I pay my accountant for.
Not to do my books but to save me money.
Good accountants are worth their weight in gold,
anyone can use quicken or sage but they don't have
loopholes programmed into them.

PS, My accountant's Nigerian, I've used him for over 25 years and there isn't one loop or hole
he doesn't know about.
And of course his fees are a business expense.
 
Last edited:
Yes, it's a very real business expense.

I base much of my accounts on the tax assessment form.
Using the boxes you have to fill in - go to the hmrc site and download the current empty one if needed.

For hosting and domains - i put them in the marketing and advertising costs.

As long as you can give a reason for each expense you claim, it's valid.
I've even claimed site membership as an expense - I was checking out their features provided to paying members and members profile security in comparison to one of my sites.

As Delboy2424 said, just don't take the p!ss and you'll be fine.

Si
 
Cnotey said:
Not sure how it works in the UK, but here in the US you can write off a percentage of your electric bill as long as you claim a home office.
Click to expand...


in terms of UK self employment, any aspect of home working can be offset as a cost BUT you have to be prepared to prove it and sensibly apply a percentage that applies - you cannot offset every aspect of your utility bills against it (I have seen many try!!!) - rule of thumb for this area is normally treat it as a % of rooms in the house and you should be fine.

Gas: Based on rooms in house
Elec: Based on rooms in house
Phone: all itemised calls for business use and normally 50/50 split between home and business for line rental
Broadband: Normally get away with minimum 50/50 or 75/25 split - if you claim 100% you may be asked to prove you dont use it for personal use.
Council Tax: Fair split as equivalent for business rates: Based on rooms in house
Fixtures and Fittings: Providing you can prove the room is purely an office, you can claim full recovery of any reasonable costs with kitting it out ie. desks, chairs etc
 
Dont forget if you take capital allowance relief you can write these off as a small business rate relief in year one thus reducing your overall liability by 100% of the cost, if not just capitalise and apply depreciation as an allowable expense.
 
Didcot said:
You rent them both so I would have said fixed overheads.
Click to expand...


This is incorrect - if the self employment is internet based, then these are direct costs and not overheads as without them the business is not viable
 
Just another note. If you bought any equipment then you can add it in AIA (anual investment allowance) which means you don;t have to write off the value year after year.

Motorbikes, scooters and mopeds can also be added as 'machines' now.
 
thesaintv12 said:
Just another note. If you bought any equipment then you can add it in AIA (anual investment allowance) which means you don;t have to write off the value year after year.

Motorbikes, scooters and mopeds can also be added as 'machines' now.
Click to expand...

yep Saint - this is the right off allowance for capital expenditure, get yourself a new pc and write off at no cost in your first year ... ;)
 
Delboy2424 said:
yep Saint - this is the right off allowance for capital expenditure, get yourself a new pc and write off at no cost in your first year ... ;)
Click to expand...

You get a new AIA every year, so now you have an excuse to get a new laptop whenever you want ;)
 
AIA?? Im Uk remember...
Ill do as best i can, ill just take a small % out for electric but i dont wanna over step it as its not classed an an "office" it's a computer in my living room so got to be careful.
 
im using kashflow.co.uk, really good
 
graphicnut said:
AIA?? Im Uk remember...
Ill do as best i can, ill just take a small % out for electric but i dont wanna over step it as its not classed an an "office" it's a computer in my living room so got to be careful.
Click to expand...

AIA (Anual Investment Allowance, google it) is for the UK. You can claim it as a Sole Trader on your Self Assesment return (paper or online). It is just a very simple way of claiming for any computers, printers, network kit etc you have bought over the year.
 
AIA, but i thought you can write off all your computer stuff etc etc so whats the diff?
 
Advertise on BHW
You must log in or register to reply here.
Sign up now!

Main Menu

Home Main Forum List Black Hat SEO White Hat SEO BHW Newbie Guide Blogging Black Hat Tools Social Media Downloads

Marketplace

Account Selling Content / Copywriting EBooks / Methods Hosting Misc Proxies For Sale SEO - Link building SEO - Packages Social Media Social Media - Panels Web Design More

Making Money

Affiliate Programs Hire a Freelancer IM Journeys Making Money Pay Per Click Site Flipping Want to Buy

BlackHat World

Dispute Resolution Forum Suggestions & Feedback Introductions Lounge
Back
Top