Tax questions

[rocketmanbkk]

Friends

I have some tax questions that you may or may not know!

Here goes:-
1). I believe you can carry a loss forward to the next year. Any comments?

2). After being employed and now self employed, if someone makes a loss can they claim against their previous years income tax for a rebate?

3). Do you claim for all family mobile phones? Cars? Petrol? Internet? Home phone? Water, Gas/electric etc?

4). any other tips?

I have asked an accountant to deal with my end of year returns and I expect to make a loss hence the loss and income tax rebate questions. Just trying to get a bit of knowledge so I can ask them specific questions about stuff to maximise the service and get back anything I can and pay as little taxes as I can.

Cheers

Rocket

 

[Simon F]

if you have lots of time to kill, you could read the stuff on the HM Revenue & Customs website,
you might find what you want there??
HM Revenue & Customs: Self Assessment and your tax return

I think the accountant will be best suited to point you in the right direction,
but, point 3, if the use is for the business in full or in part that can be legitimately claimed as whatever percentage,
as to the whole family?? are they all working with you/for you??
if you are on a loss, ie - expense is more than income, how could there be any tax to pay??

 

[rocketmanbkk]

Thank for your response. I've looked at HMRC website but there a lot to try to understand.

The question about whole family was really about wife's mobile which is in my name, also got a PAYG mobile for daughter so wanted to say all are used for business. Can and car are mine. I use home phone also as well as Internet so will put everything down. I think all is legit.

The tax rebate I was thinking about was what I paid when employed in April and I paid tax. No ill be declaring a loss I think that should come back to me?

The last bit that confuses me is whether I can carry forward a net loss onto the next year. I think you can but again the HMRC website isn't easy.

I'll ask the accountant but thanks again.

 

[gassafe]

Thank for your response. I've looked at HMRC website but there a lot to try to understand.

The question about whole family was really about wife's mobile which is in my name, also got a PAYG mobile for daughter so wanted to say all are used for business. Can and car are mine. I use home phone also as well as Internet so will put everything down. I think all is legit.

The tax rebate I was thinking about was what I paid when employed in April and I paid tax. No ill be declaring a loss I think that should come back to me?

The last bit that confuses me is whether I can carry forward a net loss onto the next year. I think you can but again the HMRC website isn't easy.

I'll ask the accountant but thanks again.

sounds like your trying to milk it to me. If the mobile is your daughters then it ain't a business expense. The home phone & mobile plus fuel, heating home etc will come under use of home as an office. The accountant will take a small amount to allow for this not 100 allowance tho...

 

[rocketmanbkk]

Of course I'm trying to milk as much as possible.

Don't you?

 

[kirkgas]

Be very careful if you claim things like family mobiles through the business, it's fair to say if the phone is used for business it's an expense, therefore it's its fair to say that the person who uses that phone is working for the business (it's irrelevant if the business makes money or not) so that persons circumstances will be looked at to see whether they should be paying tax on the earnings, remember the company losing money and the employee's tax liability are not linked in any way,
I'm listed as a director in our family business, with son, wife and daughter shareholders, when we take money out the business we do it as a dividend rather than payment, as there's no NI on dividends and we can choose how much to pay out to who ( its based on % of shareholding and we all must be offered our share but we don't need to take the dividend,) so I have a shareholders meeting and propose a dividend payment of £x per share, we agree and I contact the accountant to advise him of the payment, if I don't take my dividend ( sometimes don't to keep my tax down) then there is more profit to have another dividend payment next month as there's more money in the pot, then my wife or daughter decides to give me some pocket money that's their business, 100% legal, and that's why the accountant gets paid so well.
I've been told to take next to nothing from the business as wages or bonus and to create more profit for dividends, if I choose to work this way then it's my business I don't claim benefit so it doesn't create a problem there, just be careful who is listed as share holder or what ever way you do it if they are unemployed etc

 

[rocketmanbkk]

Thanks. I'm just a sole trader so dividends etc. won't count but maybe in the future things will change.

I've got 2 mobiles in my name so I'll claim for both.

Look forward to seeing what the accountant can do.

The way I look at it is its better in my pocket than anyone else's!

Thanks again

 

[lame plumber]

just pray that the mods dont ever let "taxingplumb" into the arms!!!

 

[JAH HEATING]

Be carefull with tax, trying to use things like your kids phone etc to save a couple of quid could bite you on yer hoop one day

 

[Rickster123]

just pray that the mods dont ever let "taxingplumb" into the arms!!!

They have a pass for everywhere don't they?

 

[lame plumber]

they dont require search warrants to hit u fm memory!!!!!!!!!!!!!

 

[nicro3]

Be very careful what you claim, if your name is drawn out of the tax mans hat, you will be dragged across the coals. Best to seek advice from an accountant if you are in any doubt.

 

[lame plumber]

if you are investigated, do it at your accountants office, never relase diaries etc and dont bend over or youll be fingered there as well. Anything you cant verify will be added or subtracted fm your account. takes several days and is scary, if you join the fed of small businesses you get insured against this if you feel the need. However well kept accounts and paperwork will protect you. if you run 2 sets of books, youll be caught out in the end, not worth the hassle really.