Deductible expenses from Self Assessment Tax Return (second job)

[DCNotts]

Good afternoon,

My question is regarding filling out a self assessment tax return on behalf of a friend for a secondary job. I understand tax will be 20% on what has been earned by them, and NI will not be charged on the second job unless over £110 per week, where it is charged at 11% thereafter.

As a Fitness Instructor they have made several expenses in order to teach the classes, such as sportswear, music and some equipment used in the classes. What, if anything, if deductable as an expense, that is 'wholly and exclusively' incurred in the job. The sportswear, music and equipment was bought for the sole purpose and used only in the classes.

Thanks in advance!

[Skyline D]

You've already answered your own question!

If the stuff was bought for the job purposes and only used in it then it's fine to claim. Be prepared for the Revenue to be sceptical about the music in particular though if they look at it at all.

[dothawkes31]

I suppose it is just like a joiner buying a new power drill, he can claim it as a new expense in the first year, but then in subsequent years he can claim a percentage of it's value, sportwear is not necessarily durable and would be classed in the same way as nails for a nailgun which aren't tools but come under sundry expenses. Any large item bought can be off set with a percentage reduction of it's original vale over a number of tax years, these are called written down value i think, something like that, i did his tax return last pay and so i;ve forgotten, ummmm will know though.

[dothawkes31]

sorry last may. You don't need to wait til now to do your self assessment, I do it now as soon as they set it up online and it is really quick and easy, by the end of june he has his rebate in his bank, if they owe you tax they have hung onto it for almost a year after you could have claimed it back!

[buildersmate]

It's called Capital Allowances, Dot. This tells more
http://www.businessli...er?topicId=1073868259

[dothawkes31]

don't forget travel to and from the class is also an expense, advertising, phone calls etc.

[ummmm]

Yes she can claim. She can claim for anything work related.

To be honest...if we're not looking at huge sums of money they won't bother checking. Just make sure she kept all her receipts and they correspond to what she is claiming back. The music will be fine as well. Even the taxman wouldn't expect people to work out in silence.

[DCNotts]

Thanks for all your help!

[albalass]

you can't claim for travelling to and from your workplace as this is commuting and therefore classed as a personal journey. the ni depends on whether your friend is employed or self employed. employed is 11%, s/e is 8% above the threshhold. if your friend isn't s/e there shouldn't be any need for an SA return.

[dothawkes31]

anyone self employed can claim their petrol costs under their expenses , they can also claim the VAT back on the petrol if they are VAT registered.

[albalass]

sorry dot, meant to say employed people for commuting x

[Skyline D]

Depends where your place of employment is. If you have your own office or workshop or in this case dance studio then travel from home to that place of business is NOT allowable. However if he or she has no base other than home and travels to someone else's studio to teach the class that would be allowed.

Annual Investment Allowance has done away with the scenario Dot describes of writing off small equipment as capital allowances over a number of years for any small business.