Dave1980

Morning All

Been self employed for the last few months as a sole trader in the construction industry.
Just interested to know what sort of things i am entitled too claim back or claim for now.
Basically i am keeping every receipt for everything work related (bridge tolls, fuel, car maintainance etc).
Tax is already taken off by the company i am contracting to before i get it.

Probably need to get an accountant in the very near future but some people on here must be in a similar position. Just curious to see what i can claim for.

Cheers

Neanderthal

iTrader: (6)

If you're happy to have your car as an 'asset' of your business then you can claim a % of the depreciation against tax I believe. Say you use your car 60% for business, 40% for pleasure then you can claim 60% of that years depreciation against taxable income.

Book to see an accountant (go with someone you've been recommended) and they'll let you know what you can and can't claim for.
Also, might be worth booking yourself on a course with Business Link. I hear they're very good

Dave1980

cheers will have a look into it

BlkKnight

I can recommend my accountants - they specialise in "tax avoidance". They have offices in Harrow & Beaconsfield. Drop me a PM if you want details.

Dave1980

could be worth a go, not generating loads of money yet but hopefully be worth a look in the very near future

David Lock

If you are self employed I do not understand why the company is taking off tax. They should just pay in full against your Invoice. May be this is something special about the construction industry? You can always phone the tax office to clarify - they can be quite helpful these days. dl

Peanuts

iTrader: (15)

basically you pay tax at base rate and then claim any rebate at year end.
if you end up paying over 10% over the year then you need a better accountant.
Its kind of like the old 714 that was running when I was younger and is used by shonky sub contract firms (typically groundworkers) to do away with them paying any NI contributions and being able to hoof you out the door at a moments notice.
No doubt you had to sign a disclaimer agreeing to the terms set out by HMRC to do with self employment as well.

The Zohan

+1
A good, proactive accountant who has some idea of your business and what can be claimed is vital.

BlkKnight

General rule of thumb is the accountants should be saving you money - if they are not, time for new accountants.

Ray T

Bill, I could do with that name. you have pm

Peanuts

iTrader: (15)

in answer to claiming it really depends on what role you have, Groundworker, Engineer, site manager etc or even a dirty QS

zip106

To be paid gross by a contractor you have to hold a gross payment certificate otherwise as a sub-contractor your tax is deducted at source - 20% if verified by HMRC or 30% if not.
The rules to get a gross payment cert. are very stringent
Obviously working for private customers they would pay your invoice in full.

OP - I take it you've set up a direct debit to pay your NICs monthly?
Also don't forget you have to pay class 3 NICs on your profits at year end ( payable at the time you pay your tax)

Dave1980

I have set up a direct debit to pay the NI Contributions monthly, much easier.
As mentioned tax is -20% as i am verified by HMRC and CIS for the Construction Industry. Sounds like i need to have a chat with an accountant then.
As for my role i am a consultant but really do anything that the current site demands of me at the time. Wouldnt like to be a dirty QS

Cheers for the advice guys, will hopefully be worth my while then.

Peanuts

iTrader: (15)

you're a labourer then

Dave1980

ok my secret is out, just looks better on the cv

MMT WRX

Something to think about expenses wise.
Generally you have two types of expense:
Asset and consumable.
Say you bought a printer and ink, the printer would be an asset and the ink consumable. All your assets or proportion of asset(as per Neanderthals example) are totaled and depreciated by 30% each year. The total of you consumable spend is deductible each year.
So its worth keeping all your receipts in two separate folders.

Peanuts

iTrader: (15)

fair play

Keep every receipt and get an accountant, one who is up to speed in construction.
Write a ledger of everything you spend each day, it soon becomes second nature and pays dividends to maximise your tax breaks on a day by day basis.

Dave1980

spending a fortune in travelling at the moment so be good to get some money back for a change.
if only i was on a labourers wage though .

Kieran_Burns

iTrader: (1)

You should also keep all your receipts in monthly folders ( a big envelope will do!) and make sure you have EVERY bank statement available as well.

Can't stress enough you need to keep every damn' receipt though. My ex's accountant was a right little sneak - he even put a p.c. I gave her down as a business asset and claimed back off it! 16K profit in her first year and she got a rebate.

thesyn

Does it say that on their business card then?

MMT WRX

Good points about the monthly folders and bank statements.

When your first starting out you can bring things like PC's into the business with an estimated cost and a few things without receipt aren't usually a problem.

We use a place, when you go into the office there are carrier bags full of receipts all over the place. Accountant says some people can't be bothered and just bring it like that for him to sort out.

stevebt

iTrader: (8)

Don't think being self employed is the golden goose. I have been self employed for years and my company takes 20% tax from me every week. This would be good if that was it but I then have to pay thousands more in a one off payment each year for extra payments Don't think you can claim for your car as well as years agomy accountant told me I could no longer claim for my car as spending was out of control Being self employed has benefits but don't think its going to get you free stuff if you spend more. In the current economic climate there is no good reason to be self employed!

Lee247

You need a new Accountant

stevebt

iTrader: (8)

I have an accountant which I have used for 20 years. I have tried to use another accountant which people say get them loads of cash back and all it got me was a phone call from the Tax office telling me to go back to my original accountant as I was going going to pay a fortune in tax if I didn't

Lee247

You must be a sub contractor earning mega bucks, then
Are you claiming all for a van, if you aren't claiming for your car??

Peanuts

iTrader: (15)

can only claim against the same car for so long, you can't claim depreciation past 0

Lee247

I was on about running costs, not depreciation

Berks-Jack

iTrader: (10)

oi you cheeky gits!!! nothing wrong with being a dirty QS.....

stevebt

iTrader: (8)

I do tend to get recipts for my van instead