Self Assessment Advice
Discussion
Hi all,
After some basic advice on self-assessment with HMRC.
My wife went self employed as a tutor during last year and needs to do a tax return for the 5 months up to Apr 2017. We're currently following the self assessment process on the HMRC site.
The earnings part is straightforward.
Where I'm not sure is the expenses part. It seems like she can claim for mileage, working from home expenses, and stationary etc.
But thing is, I pay for all the fuel that goes in the cars, and all the household bills (e.g. for electricity) are in my name from my own bank account (we don't use a joint one). The only other significant expense is ink for the printer. There is a subscription for the ink, which again is on a direct debit to my bank account, not hers. I'm soft.
So can she claim for these?
We're not talking huge sums, probably 40 miles a week mileage, £10 a month WFH cost (using simplified system), and £20 a month for printing. But I'd imagine it's worth claiming as it will all add up over the years, if it is legitimate to do so.
Many thanks in advance.
After some basic advice on self-assessment with HMRC.
My wife went self employed as a tutor during last year and needs to do a tax return for the 5 months up to Apr 2017. We're currently following the self assessment process on the HMRC site.
The earnings part is straightforward.
Where I'm not sure is the expenses part. It seems like she can claim for mileage, working from home expenses, and stationary etc.
But thing is, I pay for all the fuel that goes in the cars, and all the household bills (e.g. for electricity) are in my name from my own bank account (we don't use a joint one). The only other significant expense is ink for the printer. There is a subscription for the ink, which again is on a direct debit to my bank account, not hers. I'm soft.
So can she claim for these?
We're not talking huge sums, probably 40 miles a week mileage, £10 a month WFH cost (using simplified system), and £20 a month for printing. But I'd imagine it's worth claiming as it will all add up over the years, if it is legitimate to do so.
Many thanks in advance.
Surely she can 'purchase' her supplies from you if you invoice her?
Not sure if this is correct IANAA - but years ago I could have claimed some relief on home office expenses but there was some drawback to do with HMRC being able to tax future increases in value of your home that they deem that they paid some of - or something like that. I'm sure someone knows better what I'm trying and failing miserably to recall. Just be careful with that bit.
Not sure if this is correct IANAA - but years ago I could have claimed some relief on home office expenses but there was some drawback to do with HMRC being able to tax future increases in value of your home that they deem that they paid some of - or something like that. I'm sure someone knows better what I'm trying and failing miserably to recall. Just be careful with that bit.
It doesn't matter who pays for the fuel since they would never ask for receipts. You're claiming for relief on mileage and the evidence is a record of journeys.
Again with WFH, it doesn't matter who pays the bills.
With the other bits, just keep the receipts. You're married and it's very small sums. No tax inspector is going to have an issue with that, as long as the claims are consistent with the job.
Again with WFH, it doesn't matter who pays the bills.
With the other bits, just keep the receipts. You're married and it's very small sums. No tax inspector is going to have an issue with that, as long as the claims are consistent with the job.
You can claim £4/Wk (or £18/Month) without the need to provide any records for household costs. Over this and you'll need to provide evidence on what you've spent. You can claim £0.45/mile for the first 10,000 business miles and £0.25/mile thereafter. Keep a simple record of your journeys, dates mileage etc. but there's no need to submit them with your self assessment. These are legitimate business expenses which require no supporting documentation (at the rates mentioned) so it doesn't matter who actually pays the bills.
Technically you can't claim for travel between home and work but in this case the workplace is home so mileage should be allowable. All materials are part of your operating costs, so simply keep receipts and record all amounts spent. They should be 100% allowable if used solely for business use.
Technically you can't claim for travel between home and work but in this case the workplace is home so mileage should be allowable. All materials are part of your operating costs, so simply keep receipts and record all amounts spent. They should be 100% allowable if used solely for business use.
I strongly suggest if self employment is going to be a long term thing that she gets an accountant. What they will charge will be repayed many times over not just in getting it done right, but in peace of mind. My wife and I have both been intermittently employed and self employed over the years and our accountant charges £250-£350 ish each for our fairly simple affairs, and they are a firm of chartered accountants in a provincial lancashire town (i.e. not a one-man band).
It's a good feeling when you get something from the revenue that either looks wrong or you don't understand to just pass it over knowing it will get sorted - no stress! and it's good to realise that The Revenue know too that if they want to pursue something, they have to engage with chartered accts and not just an ordinary member of the public. Does tend to focus their minds a bit I think.
It's a good feeling when you get something from the revenue that either looks wrong or you don't understand to just pass it over knowing it will get sorted - no stress! and it's good to realise that The Revenue know too that if they want to pursue something, they have to engage with chartered accts and not just an ordinary member of the public. Does tend to focus their minds a bit I think.
mike_e said:
You can claim £4/Wk (or £18/Month) without the need to provide any records for household costs. Over this and you'll need to provide evidence on what you've spent. You can claim £0.45/mile for the first 10,000 business miles and £0.25/mile thereafter. Keep a simple record of your journeys, dates mileage etc. but there's no need to submit them with your self assessment. These are legitimate business expenses which require no supporting documentation (at the rates mentioned) so it doesn't matter who actually pays the bills.
Technically you can't claim for travel between home and work but in this case the workplace is home so mileage should be allowable. All materials are part of your operating costs, so simply keep receipts and record all amounts spent. They should be 100% allowable if used solely for business use.
Spot on Mike.Technically you can't claim for travel between home and work but in this case the workplace is home so mileage should be allowable. All materials are part of your operating costs, so simply keep receipts and record all amounts spent. They should be 100% allowable if used solely for business use.
Gassing Station | Speed, Plod & the Law | Top of Page | What's New | My Stuff