Self employed - expenses?
Discussion
Hi all,
Recently became self employed (in addition to full time employment) to pursue some photography work. I have a basic spreadsheet that I've set up to record invoices and payments etc and I have a few questions about expenses.
1) Mileage: as I understand it I can claim up to 10,000 miles a year at 40p per mile. I won't do anywhere near that figure, but in terms of how I record the mileage, am I obliged to record it under each specific job I do, or is it ok to have a single row in a spreadsheet for total mileage which I add to each time I travel somewhere.
2) Sometimes I don't charge clients for mileage - can I still list the mileage I do as an expense?
3) I have invested several £k in camera gear over the last few years (with the aim of becoming a working photographer) and I started working properly in May 2008 (first paid work). Can I list any (or all) of the camera equipment in my accounts to offset tax? The majority of it was purchased before the official date I started working - does that mean I can't do anything about it? I have receipts for a pc, various lenses, tripods etc etc etc.
Thanks in advance for your help
Recently became self employed (in addition to full time employment) to pursue some photography work. I have a basic spreadsheet that I've set up to record invoices and payments etc and I have a few questions about expenses.
1) Mileage: as I understand it I can claim up to 10,000 miles a year at 40p per mile. I won't do anywhere near that figure, but in terms of how I record the mileage, am I obliged to record it under each specific job I do, or is it ok to have a single row in a spreadsheet for total mileage which I add to each time I travel somewhere.
2) Sometimes I don't charge clients for mileage - can I still list the mileage I do as an expense?
3) I have invested several £k in camera gear over the last few years (with the aim of becoming a working photographer) and I started working properly in May 2008 (first paid work). Can I list any (or all) of the camera equipment in my accounts to offset tax? The majority of it was purchased before the official date I started working - does that mean I can't do anything about it? I have receipts for a pc, various lenses, tripods etc etc etc.
Thanks in advance for your help
Edited by bramley on Wednesday 15th October 09:47
Dave_ST220 said:
bramley said:
I will look to do that in the long term, but at the present turnover level it really wouldn't be worth it I don't think.
What's your approx turnover? You'd be surprised........Taita: when I've finished tweaking it I'll share the layout.
Dave_ST220 said:
You will pay zero tax anyway if that is your gross turnover!!!
Even though I have a full time job? 
I thought I have to do a self assessment and allow 22% or whatever off turnover. I thought the only relief I got for earnings that low was Class 2 NI exemption?Man I've got so much to learn!
bramley said:
Hi all,
Recently became self employed (in addition to full time employment) to pursue some photography work. I have a basic spreadsheet that I've set up to record invoices and payments etc and I have a few questions about expenses.
1) Mileage: as I understand it I can claim up to 10,000 miles a year at 40p per mile. I won't do anywhere near that figure, but in terms of how I record the mileage, am I obliged to record it under each specific job I do, or is it ok to have a single row in a spreadsheet for total mileage which I add to each time I travel somewhere.
No need to specifically tie up mileage to individualk jobs. However, the Revenue will appreciate any detail that helps prove that the mileage was properly undertakin in respect of your self employed activity. Keeping a note of miles driven in a diary would be sufficient.
2) Sometimes I don't charge clients for mileage - can I still list the mileage I do as an expense?
Yes. I would do my best to recover ALL costs from customers. You don't have to show cost recovery separately on your sales invoices but you should build it into your job pricing.
3) I have invested several £k in camera gear over the last few years (with the aim of becoming a working photographer) and I started working properly in May 2008 (first paid work). Can I list any (or all) of the camera equipment in my accounts to offset tax? The majority of it was purchased before the official date I started working - does that mean I can't do anything about it? I have receipts for a pc, various lenses, tripods etc etc etc.
If you have evidence for these purchases, then you CAN make a claim for them as business costs. Howerver, they would be looked on as Capital Costs rather than ordinary "Expenditure" so the claim should be made under Capital Allowance rules. Also, as some of the equioment is no longer brand new, some of the claim should really be based on a realistic valuation of the assets at the date you commenced self employment. The good news is that the Revenue now allow small businesses to claim up to £50,000 each year on Plant and Machineryt costs so you should be able to offset the entire cpaital costs of these items against your initial business profits.
Thanks in advance for your help
Recently became self employed (in addition to full time employment) to pursue some photography work. I have a basic spreadsheet that I've set up to record invoices and payments etc and I have a few questions about expenses.
1) Mileage: as I understand it I can claim up to 10,000 miles a year at 40p per mile. I won't do anywhere near that figure, but in terms of how I record the mileage, am I obliged to record it under each specific job I do, or is it ok to have a single row in a spreadsheet for total mileage which I add to each time I travel somewhere.
No need to specifically tie up mileage to individualk jobs. However, the Revenue will appreciate any detail that helps prove that the mileage was properly undertakin in respect of your self employed activity. Keeping a note of miles driven in a diary would be sufficient.
2) Sometimes I don't charge clients for mileage - can I still list the mileage I do as an expense?
Yes. I would do my best to recover ALL costs from customers. You don't have to show cost recovery separately on your sales invoices but you should build it into your job pricing.
3) I have invested several £k in camera gear over the last few years (with the aim of becoming a working photographer) and I started working properly in May 2008 (first paid work). Can I list any (or all) of the camera equipment in my accounts to offset tax? The majority of it was purchased before the official date I started working - does that mean I can't do anything about it? I have receipts for a pc, various lenses, tripods etc etc etc.
If you have evidence for these purchases, then you CAN make a claim for them as business costs. Howerver, they would be looked on as Capital Costs rather than ordinary "Expenditure" so the claim should be made under Capital Allowance rules. Also, as some of the equioment is no longer brand new, some of the claim should really be based on a realistic valuation of the assets at the date you commenced self employment. The good news is that the Revenue now allow small businesses to claim up to £50,000 each year on Plant and Machineryt costs so you should be able to offset the entire cpaital costs of these items against your initial business profits.
Thanks in advance for your help
Edited by bramley on Wednesday 15th October 09:47
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