Evening gents ..

Re: Evening gents ..

Does this mean some employer / work provider is offering you a “job” but is trying to dodge their employer responsibilities by you declaring yourself as self-employed?
The best people to ask would be a tax office / helpline. You don’t need to tell them who you or your potential employer is, if you don’t want to; you can stay anonymous if you wish – it’s just a general enquiry. 😉
Mike.

Re: Evening gents ..

Yes that is right… So long as you are self employed you can claim most costings to the tax return if they are legitimate outgoings.

Tools
Workwear
Chargable Parts
Veh Fuel

You must keep all your receipts to prove your outgoings for 6 years.
Another thing; I am sure (I may be wrong) that if you take the vehicle home with you then they classify it as a company car and you get taxed on it.

George

Re: Evening gents ..

I will check with my wife for you tonight if you like? She is ACCA qualified tax specialist, she will tell you everything you need to know as i’m in a very similar situation to you and she does my books. 😉

Re: Evening gents ..

; I am sure (I may be wrong) that if you take the vehicle home with you then they classify it as a company car and you get taxed on it./quote]

If it’s a commercial vehicle IE a van then if you don’t use it for personal use (cough) then you don’t pay tax on it.

Bryan

Re: Evening gents ..

robdray wrote:

I have been told, that if I am Self employed, but given work on a daily basis & given a leased van to use to go about that work, the fuel that I use to get to and from jobs is able to be offset against my end of year tax return .. I.e if I spend £1000 on fuel, and have a tax return of say, £2500 i will only need to pay £1500 in tax .. ?

Is this right ? .. If it isn’t, then I would be spending approx £60 a week on fuel and need to offset that against any monies paid to me for doing the work supplied and need to adjust any potential profit ..

Hope I make sense .. :offtopic:

Rob

Hi DJ’s wife here. First off tut tut on your “employer”.. but anyway..

You can not claim any of the leasing expenses as these are being incurred by your “employer” and not you, however, other expenses directly incurred by yourself are fine to put through. Do you get paid a salary as such, or are you given £x amount per call-out?

In theory, since you are being provided with a company van, if your “employer” gets caught, he’s going to be shafted for class 1a NIC’s, PAYE, etc. since the time you started your employment with him.. And he’s going to have a hard time arguing the case when he’s providing you with a company van, contracted work etc. Unfortunately that does also mean that you would also be deemed liable for any unpaid taxes that would have been due on your part (ie. personal tax due on benefits received etc.)

But anyway, if you are claiming self-employment, you are entitled to put through any business expenses incurred against your monies recieved (the quote above reads that you are asking would you deduct say the £1000 directly off of your tax bill? Which is wrong).

You need to keep a record of all your fuel receipts, and as you are not using your works van for any private use ❗ then these costs will be offset along with any other expenses you incur during the year to give you your taxable profit.

ie. Salary/turnover £x
less business expenses – tools, clothing, fuel etc. (£x)
= taxable profit £x

Deduct your personal allowance (£6475 for 2010-11), and apply your rate of tax (20{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d}/40{e5d1b7155a01ef1f3b9c9968eaba33524ee81600d00d4be2b4d93ac2e58cec2d}) to get your personal tax liability for the year.

Just as a heads up, if you are only working for this one employer and not doing any self-employed work you are going to have a harder time arguing that you are self-employed if HMRC ever decide to investigate your employment status.. whoever you are working for can’t just choose whether you are employed or not, there are guidelines in place that determine that.

Hope that helps, N x

Re: Evening gents ..

If you do use a vehicle for personal use as well then it is a process of recording the vehicle mileage at the start of your tax year and recording the mileage of each business trip or personal trip. At the end of your tax year you then record the total mileage and work out the vehicles total mileage for the year. It then is a process of subtracting the total business or personal mileage so that you can work out a percentage mileage for business and personal. All claims against the vehicle then (ie. fuel, road tax, servicing etc) is the total cost minus the personal percentage.

:boops: sorry if you’re bored at this point! 😐

Chris