Accounting/bookkeeping

[grumpygrouter]

Anybody who was following the thread about Vans and the tax man will have noticed that I offered advice regarding accounting and tax. I am, in another pre-tiling life, also self employed providing accounting services in my local area and have been for 12 years. If anybody using the forum wishes to ask any questions that I may be able to help with I am more than happy to try.

I must point out that I am NOT a Chartered Accountant, I started that particular career move quite late in life and it was not viable to sit the professional exams, though I did progress some way towards them.

Any questions, fire away. If I don't know the answer, I may be able to point you in the right direction to find out.

Grumpy.

 

[Varley]

Whats the best way to not pay taxes and not get caught ??

Only kidding

 

[grumpygrouter]

Whats the best way to not pay taxes and not get caught ??

Only kidding

Hi varley mate, get yourself a nice pad in Monaco, put your daily rate up to £750 and then start to live the high life - tax free. Yippppeeeeee!!!!!!!!!

Grumpy

 

[stumac]

grumpy
been told by business advisor i can either charge 40pence a mile for using my own car or bring my car into the business and claim against reciepts at 4/5 split to account for personell use. it would be easiest for me to use the second method but is it the best method. bearing in mind my car is a pajero and does about 20 miles to the gallon and costs a fortune to repair and the second methods means i can claim against servicing, tax etc. hope this makes sense and hopefully by sept i will have a van and the the pajero will go any advice would be gratefull

 

[grumpygrouter]

grumpy
been told by business advisor i can either charge 40pence a mile for using my own car or bring my car into the business and claim against reciepts at 4/5 split to account for personell use. it would be easiest for me to use the second method but is it the best method. bearing in mind my car is a pajero and does about 20 miles to the gallon and costs a fortune to repair and the second methods means i can claim against servicing, tax etc. hope this makes sense and hopefully by sept i will have a van and the the pajero will go any advice would be gratefull

Hi Stumac, personally I would opt for the second method, especially as you car is a bit thirsty on fuel. You can push all the receipts for ALL your vehicle use through your accounts and then make an adjustment on your tax return for personal use, as your adivser has said. I would consider the split carefully though. I have my car through my accounting business and, until I started tiling (my car is my van!) i was allocating 1 day per week as private use (14.29%), Never had any problems with the tax man from this proportion. You can also class your car as a business asset and claim tax relief by way of capital allowances. You can't do that by using the mileage method.

As a note, the 40p per mile is only for the first 10,000 business miles, the figure drops to 25p after that.:sad_smile:

 

[stumac]

thanks mate thats what i thought, just wanted a bit of independent advice it was what i planned doing
cheers

 

[grumpygrouter]

thanks mate thats what i thought, just wanted a bit of independent advice it was what i planned doing
cheers

No problem, anytime.