Expense Claims / Sole Trader

[jaydebruyne]

Does anyone know if:

Van stock can be claimed for under expenses?

Parts I order for jobs, they just get taken off of the invoice total and then I submit what I earn (after taking off total for parts) to HMRC on my tax return?

Cheers

 

[PlumbBobBob]

if you have receipts I don't see why not but only in the tax year that corresponds to the date on the receipts

 

[jaydebruyne]

if you have receipts I don't see why not but only in the tax year that corresponds to the date on the receipts

Yeah.. Ok cool cheers Steve

 

[lame plumber]

claim for anything and everything from parking tickets to work clothes to tools etc etc

 

[jaydebruyne]

claim for anything and everything from parking tickets to work clothes to tools etc etc

Sounds good to me

 

[Chalked]

Van stock is the opposite! If you have £1000 of stock on your van at year end, you will pay tax on it.

 

[jaydebruyne]

Van stock is the opposite! If you have £1000 of stock on your van at year end, you will pay tax on it.

But if you buy van stock and use it before year end you can claim it?

 

[tamz]

You or your accountant should put something in for stock as you are taxed on it even if it is only marked in as a few hundred pounds of stock.

 

[jaydebruyne]

You or your accountant should put something in for stock as you are taxed on it even if it is only marked in as a few hundred pounds of stock.

You mean cover van stock with profits? Sorry, I'm new to this tax stuff and I'd rather do my own accounts - I don't have an accountant

 

[tamz]

Everyone will have some stock unless you are one of these guys who buy 3 elbow a tee and 6 clips so you mark a figure in your accounts for stock. This amount is then subject to tax. You can keep the figure quite low but they would normally expect to see some stock on your return unless you are subbing labour only.
It could be worthwhile speaking to an accountant as they will generally save you more than they cost as there will be a few things you are not claiming allowance on.
.

 

[jaydebruyne]

Everyone will have some stock unless you are one of these guys who buy 3 elbow a tee and 6 clips so you mark a figure in your accounts for stock. This amount is then subject to tax. You can keep the figure quite low but they would normally expect to see some stock on your return unless you are subbing labour only.
It could be worthwhile speaking to an accountant as they will generally save you more than they cost as there will be a few things you are not claiming allowance on.
.

I'll take your advice and book an appointment.. Cheers Tamz

 

[Chalked]

I will try and explain.

You have bought £1000 of stock that you have on the van.
You use £500 of your stock on a job and charge it out at £1000. So you have made £500 of profit.
You also charge the customer £500 in labour. This is also profit.
So you have made £1000 profit. This will be taxed. So 20% is £200 tax to put aside.
But..........
Now this is where you are best using an accountant, or are very good at tax law.

During the financial year you will have business expenses,like van depreciation, tool replacement, stationary, fuel, room in your house for bookkeeping, bank expenses , accountancy fees. and the main one you mentioned, material costs. All these are expenses that do not attract tax.
At the end of the year, you will have an ammount of stock left over in you van or garage. This is expected, but will be taxable. I usually just say £500. If you are a 20% tax payer p, that's £100.

But as other posts, I would recommend paying an accountant. They should always reduce your tax bill by at least thier charge.
Also if you want to borrow money from lenders in the future. You will need certified accounts going back three years. So best to start now.

Good luck.