CMs - HELP!!! - what am I missing with Tax Return????

[looneytune]

Bill is very high this year and I can't think what I'm missing?!

I've got all cleaning products, trips out, this year I've gone with charging per meal/snack rather than every bit on shopping receipts (basically like Shoshe does). I must be missing something as my bill can't be that high!!!

Council tax/heating/elec/phone/tv/internet percentages?

Oh and 10% wear and tear?

Hiya

Got all that apart from tv - I've not put sky tv or anything down as I only have it on for such a small amount a day - what do you put down for that?

Oh barely any myself, 2% I think or something ridiculous. Are you sure your receipts for toys/arts/ etc etc are included?

Everything in my file is logged but I reckon some that were paid cash for have disappeared grrrrr

Everything in my file is logged but I reckon some that were paid cash for have disappeared grrrrr

You are allowed to guestimate (I think) cash purchases aren't you? I mean - you can prove you have them!

I'm just going to add roughly what the messy play items were as quite often bought these from The Works and paid cash. But tbh, not looking great for me lowering the bill too much more. Never mind, just got to get it submitted. I thought I'd be ok but then I read on another thread that you pay first £2230 @ 10% and the rest @ 22%!! That's what's making it so high

You pay nothing on teh first £5000 or so

I thought they got rid of the 10% band...which wouldmean that you are paying 20% on what you would previously have paid 10% on. But I am not sure if I am dreaming and the government did a U turn on that one.

looneytune - do you put aside money each month for your tax or are you having to find it all now?

I admit I'm another one of the many who doesn't put aside each month. I meant to then my dh got made redundant and well, we needed every penny. Anyway, it's not usuallyt a problem as I've not usually had to pay. Last year I did have to pay for the first time but it was only £130.50. Just a tad surprised at how different this years is which is what's made me panic. Anyway, I know it's my own fault but I was also pregnant and I tend to get very air-heady when pregnant!!

Oh well, looks like I'm just going to have to go for it.

how are you getting away with internet and sky charges? I was told no way could I use those as expenses.....

Also are we allowed to put down NI contributions as an expense?

Cant include Ni contributions apparently. What about stationery, printer ink (I use loads of that!), cutlery/beakers/plates etc?

Petrol

Are you calculating it right

Profit - 5225 = Taxable income

Taxable Income - 2230 = Income taxed at 22%

Tax at 22% + 223 = tax due

You don't have to have a receipt for anything under £10 although I know it's good practice to. There's been lots of times when I haven't had a receipt for bits and pieces under £10.

You don't have to have a receipt for anything under £10 although I know it's good practice to. There's been lots of times when I haven't had a receipt for bits and pieces under £10.

were u on maternity leave ? did u take off the 100 pounds allowence ..

Due to snowday (no mindees for me today) I decided to update my books for 08/09 to get an idea of what my tax bill will be. What a shock - without the 10% for the first £2k I am going to need to save extra hard for a while. I had been putting away some each month but need to double what I thought!! If I buy a laptop to do my college work on - can I put that on my expenses?? It might help a little instead of giving it all to the tax man .

Is your college course related to your work? If so yes you can...I think

But you only claim a "writing down allowance" for it, not the whole value...which is 25% of the value, then 25% of what is left next year and the year after etc.

Also if you use it 50% for work then you can only claim 50% of the writing down allowance. It does geta littel complicated...but if it is for work then yes do it...but unfortunately if you buy a £1000 laptop (round number for simplicity...I know they don't tend to be that expensive:

You could claim £250 WDA (Writing Down allance)...carry over £750 to next year. But you actually only take £175 off your income as only 50% is for work.

Next yearyou can claim £187 WDA (25% of £750), which is again limited to 50% which would be approx £90.

the same goes on year after year...

So yes you can claim it on your tax return...but not all of it!

just to contradict SMS (sorry), capital allowance rules changed as of 6 April 08, you now get a £50,000 allowance each year that you can claim in full.
So assuming you don't spend more than £50k on capital goods (unlikely I know ) then you can claim the full cost - assuming it is a valid work expense, I'm not sure a laptop for college work would be.

Fair enough Chasing squirrels....I haven't done DP's 08/09 tax return yet(!)...which is when I will find out the new rules.

Can we still do the writing down allowance as was if we want (and does the £50K allowance include vehicles?)...DP's main WDA is his car (driving instructor) and TBH we would be worse off it was all claimed in year 1...as the rolling WDA helps with his tax year on year.

ummmmm, cars - well expensive cars are still in the expensive car pool, ummmmmm.
So if it costs more than £12k it is in a pool on it's own and you get CA's (now 20% not 25% anymore) to a max of £3k.
But don't quote me on that!
You don't have to claim the £50k (Annual Investment Allowance - AIA), you can just put something straight into the pool and claim WDA,

So if we bought a car that cost less than £12,000.....what would happen then? [dim]

umm, KatyMac, I'm not shit-hot with the car rules. I don't know. But I can look at some notes and find out. tomorrow.

That is very kind of you.....