New Business

[jasonhanger]

I've recently set up a business as a sole trader. But, to make things complicated I have two separate business models. When I submit my tax records to the Inland Revenue, do I have to do two sepaate lots of forms or can I combine them. (Mainly because one idea is not really doing anything).

ALSO
Can I claim, food, sustenance, travel, personal health insurance, pension, health club membership, company jet on expenses... (BUT seriously, are there things that aren't that obviously that I can offset against the business?)

Thanks

Jason

[jason1980]

When you complete your self assessment form it normally asks you for the names of your business on more than one line, so you list on each line the names of your businesses. because you are a sole trader, and the profit goes to you personally, you are taxed on all your income together from each business that you run. If one business made a net profit of 50K and the other made a loss of 10K then you are taxed on 40K.

You can only reclaim business items. Personal health insurance, health club membership, are items which are your choice to have and nothing that perhaps your business requires. You can put down travel expenses on your accounts, and if you run your business from home. You can get business tariff electricity, phone bills, which can be offset.

[jasonhanger]

Thanks for that Jason 1980

Is there any unusual or items i can include as legitimate expenses? or do you know of a website or book that can help me with items that I might overlook?

Jason

[jason1980]

Hi, I can not think of anything unusual because the rule is that whatever the expense is - it can be absolutely anything from buying a plot on the moon or ownership of a rocket. The expense itself just needs to be associated with your business and not yourself personally unless you HAD to have it for business related reasons. For instance with our business, we take staff out in Limousine Parties, the expense of that can go down because its a staff party, and it actually boosts staff morale and they do work better. Although I work in a family business I am also a qualified accountant with the AAT (association of accounting technicians) and as mentioned above you can put down anything you want, so long as you have the receipt in hand, and it was used to benefit your business, or something your business needed.