"Yes but you can write it off against tax ;)"
Discussion
Anyone else get 
ing irritated when people say that phrase to you.
Non business-owners genuinely seem to think that if you have a business then everything in the world is free because "you can write it off against tax" nudge nudge wink wink.
Everyone says it!!!!
The most widely used and meaningless phrase in existence.
I have developed a whole army of sarcastic comebacks to any unwitting friend or member of the family who says this to me.
Not many of them like me .
ing irritated when people say that phrase to you.Non business-owners genuinely seem to think that if you have a business then everything in the world is free because "you can write it off against tax" nudge nudge wink wink.
Everyone says it!!!!
The most widely used and meaningless phrase in existence.
I have developed a whole army of sarcastic comebacks to any unwitting friend or member of the family who says this to me.
Not many of them like me .
Piss off you ignorant tt ?
A friend of mine is starting a business for the first time, I had to endure 2 hours of another friend (who has worked for the man for his entire life) telling us all the things friend one could claim against.. It is amazing, we should employ this chap as an accountant...NOT!
D
t ?A friend of mine is starting a business for the first time, I had to endure 2 hours of another friend (who has worked for the man for his entire life) telling us all the things friend one could claim against.. It is amazing, we should employ this chap as an accountant...NOT!
D
slapmatt said:
I think it is a myth largely perpetuated by business-owners, particularly self-employed plumbers/electricians who claim to put every conceivable expense through their business and therefore pay no tax.
I know a few who do ...50 inch plasma = advertising / multimedia display unit
arse
JonRB said:
arfur said:
50 inch plasma = advertising / multimedia display unit
That's just extracting the urine, unless it is genuinely for that at a dedicated business premises and even then only if used for that purpose.arfur said:
slapmatt said:
I think it is a myth largely perpetuated by business-owners, particularly self-employed plumbers/electricians who claim to put every conceivable expense through their business and therefore pay no tax.
I know a few who do ...50 inch plasma = advertising / multimedia display unit
arse
You don't go into a shop and say:
"Ill have that tele please"
"Ok that'll be £1500 please"
"Fine, but I shan't be paying as I am writing it off against tax!!!!"
arfur said:
JonRB said:
arfur said:
50 inch plasma = advertising / multimedia display unit
That's just extracting the urine, unless it is genuinely for that at a dedicated business premises and even then only if used for that purpose.Then it stops working fine!
Buying some tyres for my van recently, I had the guy ask if I'm paying for it personally, or is it going throught the company. I'd said why does it matter - their reply was 'it will be more through the company because you can claim it back'. I said that is still my company, I have to earn the money to pay for the goods, so I don't want to pay more just because I use the company debit card instead of my own.
The problem is not how much you can write off your profits but how little. What is happening is that people are charging their expenses to a company which may be in a position to pay them but setting them against tax is another story altogether. I'm not an accountant though maybe I need one but I am getting seriously pissed off with this country.
Yes, effectively a sole trader. Somehow I end up paying twice as much in tax as I take in drawings. Plus when I invest in the business, such as buying new IT equipment or cars for that matter, they come out of taxed income and I get capital allowances back at a trickle. So and these are just examples, I pay £25,000 for computers and £25,000 for a car in a given year, and the £50,000 gets taxed at 40% so I pay £20,000 in tax. Doesn't encourage investment, does it?
I hope you've claimed the 50% Cap[ital Allowances you are eligible for on the purchase of the computers.
In effect, the Revenue follows accounting principles when not allowing the full write off of capital costs in the year of purchase of a fixed asset. Don't forget that, when an asset is sold, remaining unused Capital Allowances ARE claimed in the year of disposal so, in effect, you DO get full allowances on the cost of the asset, spread over the period of time the asset was in use in the business. It's quite a fair system really.
Obviously, the Revenue are not so generous with motor cars and Capital Allowances on the purchase of buildings are either very low or non-existent.
Keep an eye out for the radical new rules coming in next year which completely change the whole Capital Allowance scenario for small businesses.
Eaxh year a small business will be able to claim 100% allowances on Plant and Machinery expenditure up to an annual ceiling of £40,000.
The nitty gritty of the new rules has yet to be released so how this scheme will REALLY work - i.e. interaction with old rules, purchase of cars, what happens when expenditure EXCEEDs £40,000 etc etc
In effect, the Revenue follows accounting principles when not allowing the full write off of capital costs in the year of purchase of a fixed asset. Don't forget that, when an asset is sold, remaining unused Capital Allowances ARE claimed in the year of disposal so, in effect, you DO get full allowances on the cost of the asset, spread over the period of time the asset was in use in the business. It's quite a fair system really.
Obviously, the Revenue are not so generous with motor cars and Capital Allowances on the purchase of buildings are either very low or non-existent.
Keep an eye out for the radical new rules coming in next year which completely change the whole Capital Allowance scenario for small businesses.
Eaxh year a small business will be able to claim 100% allowances on Plant and Machinery expenditure up to an annual ceiling of £40,000.
The nitty gritty of the new rules has yet to be released so how this scheme will REALLY work - i.e. interaction with old rules, purchase of cars, what happens when expenditure EXCEEDs £40,000 etc etc
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