Self Employed

[Autonotiv]

May possibly be going self employed a bit later this year but have a few questions.

1 - I have heard that you can claim for things 3 years previous? for example, if i bought a drill 2 years ago then go self emplyed can i claim that back?

2 - When people say you can claim that back does this mean i can claim it back in full, for example if i bought the drill for £100 inc vat can i claim all that back? Also does this happen for things like Vans, Fuel, Clothing etc etc?

cheers

[AlexanderV8]

Are you Jackie Smith?

[V12Les]

No not 3 years BEFORE your self employed. With the other stuff you get allowances on, vat back etc. If you go limited you get 100% of PC (bought within the first year) gear knocked off your tax bill.

[mybrainhurts]

You don't "get it back".

Capital allowances are the same as depreciation, with rates set by Darling.

You work out your taxable profit, then deduct the allowances before calculating your tax.

So, if tax is 40%, you're reducing your tax bill by 40% of whatever you claim, which usually has to be spread over a number of years.

Don't know what the current rates are, I be a little rusty.

You can reclaim your VAT only if you're VAT registered.

[Eric Mc]

Autonotiv said:

May possibly be going self employed a bit later this year but have a few questions.

1 - I have heard that you can claim for things 3 years previous? for example, if i bought a drill 2 years ago then go self emplyed can i claim that back?

If you have bought equipment or furniture in the past and want to bring it into the business as a Fixed Asset, you will be able to claim Capital Allowances on its value at the date it was brought into the business. The value will be based on its estimated market value at the date it was introduced (not what it originally cost). A drill you bought three years ago for £100 might only be worth £40 today - so it would be brought into the business at a value of £40. The Revenue allows you to set the value - but you must be reasonable about the values you chose.
At the moment, intropduced or bought equipmet is eligible for a Capital Allowance claim of 100% - subject to an annual upper limit of £50,000 total claim.
Motor Cars are not included in this claim (although vans and other commercial vehicles are).

2 - When people say you can claim that back does this mean i can claim it back in full, for example if i bought the drill for £100 inc vat can i claim all that back? Also does this happen for things like Vans, Fuel, Clothing etc etc?

Yor Capital Allowance claim amount is offset against your business profits. The tax (and Class 4 NI liability) is calculated on the business profit. Therefore, the cash value of your claim is the allowance amount multiplied by the top rate of Income Tax and the Class 4 NI you are paying.

[SS HSV]

mybrainhurts said:

I be a little rusty.

Here you go old boy

[peter.brown]

speak to an accountant agood one will give some free advice in the hope of getting your future bussiness no vat if not regd other depends how much tax you have paid recently and your circumstancess

[mybrainhurts]

SS HSV said:

mybrainhurts said:

I be a little rusty.

Here you go old boy

Thanks, I shall rub it in all over....