accounts help needed!!!please

[squidgey]

hi all,

my question or questions  are

1. im a gardener (self employed) and if i buy some small tools (rake,spade etc) are these classed as direct or indirect expenses ?
2. fuel i buy for my mowers and strimmers are these direct or indirect expenses ?
3. a software package is this just an indirect expense or an asset
4. fuel for my car - if i use the car for my personal use too - do i have to keep a log of how many miles i do business use?

 

i am selfemployed and i am using a software accounts package that isn't specific to any trade so i'm struggling on these minor points... any help welcomed ....

i am also planning on doing my tax returns myself without the use of an accountant and to do this i'm going to use taxcalc. any advice on this also welcomed

thankyou

 

[saffstar]

The absolute best advice I can give you is to contact your local Inland Revenue Business Support Team.  You can either attend a workshop or, if you prefer, an advisor will come to see you on a one to one basis and talk you through everything you need to know, tax-wise, when you start in business. Their services are free and anything you tell them is confidential.  They have nothing to do with tax inspection/collection and they'll usually arrange to see you (at your convenience) within a couple of days. 

You can get more info here:

http://www.inlandrevenue.gov.uk/bst/index.htm

[saffstar]

P.S. As regards your car, yes, you absolutely need to keep a record of your business mileage. There are two different methods of claiming motor expenses (a business support team advisor will tell you about both) but, whichever you choose, you must keep a record of the date you travelled, where you went, and why, and the number of miles travelled - and keep all your car-related receipts (at least for the time being).  Take care :)

[sam1ellie]

Small tools are classed as consumable tools and are taken from your gross profit.Fuel for mowers etc and software packages are taken from your gross profit also along with motor expenses including fuel, repairs, insurance, RFL etc.  You need to split motor expenses though between business and private eg 50%each.  There are other expenses such as stationery, telephone, postage, advertising and depreciation to name but a few.These need to be added up and taken off your gross profit (or work done) to give you your net profit.

Things like your mowers and other big tools are classed as assets and you can claim capital allowances for these. Capital Allowances are entered on your tax return. 

It might pay you in the long run to see an accountant because there may be things you can claim for that you don't know about.  There are reasonable estimated expenses that an accountant will claim for that you probably wouldn't even think about. I am an accountant so I should know and a small firm will most likely charge you a lot less than a big firm.

[Scarlett]

I would say, get an accountant!! Mine charges �75 and does my tax return for me. I just give him my receipts and figures. Easy peasy, AND his fee is tax deductable.

[saffstar]

...and I'd say, see a free business advisor first (before you decide whether you need/want to pay an accountant) - Self Assessment is designed to make it possible for people to complete their own tax return (and completing the return, if you've got proper records, is really simple), but obviously it's up to you whether you can afford to pay an accountant or whether you do want to use one to free up your time.  The Inland Revenue will tell you exactly what you can and can't claim - if the business advisor you see doesn't know the answer, they'll know someone who does and they'll find out for you.  They'll also teach you about capital allowances and how to complete your return, amongst other things.  I'm not saying 'don't get an accountant', but just find out whether you need one first.  If you're using an accounts software package, then you're probably doing the hard work already.