Help with tax return. Employed and self employed
Creamcheeseontoast · 12/01/2018 10:54
OK so ball park figure
Employment earnings. 25k
Self employed work done. £1.4k
However. Employment expenditure I. E tools, equipment and workwear - 2k
Self employment expenditure - 2. 5k making me at a loss.
So how does it affect my gross if my s/e has made a loss
Would I get a rebate? Is it easier to get an accountant?
Oblomov18 · 12/01/2018 10:59
Why have you spent £2k on tools etc for PAYE paid employment? That's not normal. And can not be reclaimed. Your employer should pay for what you need. I don't understand.
Yes, you have a loss for your self employed activities for the year.
Which can be offset against your PAYE income.
OutToGetYou · 12/01/2018 11:02
Is this for 2016/2017? You'd best get on with it, you've only got two weeks and you might need to use the extra pages for the expenses.
I have my accountant do mine.
I'm not sure you can claim an offset for tools, equipment and workwear for your employed role, why isn't the employer providing the first two? If your employer provided a uniform which needs dry cleaning you can claim a tax offset from the cost of dry cleaning.
Phone your tax office and ask them which pages of the self-assessment you will need to do. I assume you are all set up to do your SA online, with your gateway password and everything?
If not, you'll need to get that sorted first.
Then you can start doing it and it will tell you online whether you are due a rebate, but I don't think you are - HMRC (/the taxpayer) isn;t responsible for you spending more than you earn and you can only have a 'rebate' of tax you have paid, you don't get 'funded' for buying tools. You might be able to carry the loss into the new tax year.
Next [tax] year (this year), start this in May!
Creamcheeseontoast · 12/01/2018 11:25
Because I've just passed my mechanics. So had to buy all my tools. They don't supply tools at garages.
Creamcheeseontoast · 12/01/2018 11:26
I was told by my employer you can claim tools for the first two years of setting up your tool box. I've just rang and accountants that's a parent at my sons swimming club. And asked her advice or for her to. Do it.
Creamcheeseontoast · 12/01/2018 11:29
This is what my employer told me to look at. As it isn't small tools. It's specialist ones and equipment. But just for two years www.gov.uk/tax-relief-for-employees/buying-other-equipment
If it can't be then that's fine. I just wasn't sure as new to both scenarios
Stickerrocks · 12/01/2018 14:57
Losses from your self employment can be offset against your employment income, generating a refund of some of your tax paid through PAYE. meanwhile, is your self-employment in the same area as your employment and do you use the employment equipment you paid for your self-employed work? If so, as your employer will not pay for your tools and equipment, you may find it makes sense to claim for the tools within your annual investment allowance. This would increase the loss available to offset against your employment income.
Creamcheeseontoast · 12/01/2018 16:14
No its two. Completely different types of work.. The other is kids face painting and parties... No tools required 😂 but had to buy disco equipment
Stickerrocks · 12/01/2018 16:32
Ok. For your party business make sure you split your £2.5k expenditure into 2 chunks, one for routine expenses and the other for the disco equipment. The expenses go into Box 20 on the self employment pages, whereas the cost of your disco equipment goes into Box 23. Your self employed sales go into Box 9.
Meanwhile the figures from your P60 go into the employment pages. Then you put your equipment costs into box 20 of the employment pages. I would add a note explaining that your employer will not reimburse you for the tools which are essential for your role, hence the claim.
Creamcheeseontoast · 12/01/2018 21:55
Perfect thanks. Got an accountant to do it now.. Lol
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