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Tax Time

LoxleyLoxley NottinghamPosts: 4,961
edited 21 January in The potting shed
I don't think I've ever left my taxes so late.

I have a question. I charge my 'client' fees and also for certain expenses which his business pays for. So for instance I would be paid fees per month, and a certain amount to cover mileage and various business related receipts.

I receive this as a total payment for the month.

The way I've been doing my accounts is to record this total payment for each month, then on separate rows I record the monthly expenses. These (along with other expenses such as the working from home allowance) get added up to give an annual figure for expenses, which is subtracted from my total annual payments, to result in my annual taxable income.

Is this correct? 

Posts

  • fidgetbonesfidgetbones Derbyshire but with a Nottinghamshire postcode. Posts: 16,456
    Thats the way I do it.  If you have a vehicle purely used for business, you can claim capital allowances. If not claim mileage at the rate specified by HMRC.  (45p per mile up to 10, 000 miles then 25p per mile therafter.  If you do that you don't include petrol receipts Car tax/insurance  in your expenses as the mileage rate covers it.
  • LoxleyLoxley NottinghamPosts: 4,961
    Thanks, yes I go by the 45p rate. I hope I don't exceed the 10,000 miles - never actually checked!
  • fidgetbonesfidgetbones Derbyshire but with a Nottinghamshire postcode. Posts: 16,456
    I used to log every business journey and the mileage.
  • LoxleyLoxley NottinghamPosts: 4,961
    edited 21 January
    I do log miles, just never add them up to an annual mileage - just done that and I did 3053 miles apparently. I don't think I'll be hitting the 10,000 mark any time soon.
  • LoxleyLoxley NottinghamPosts: 4,961
    Submitted!!!

    I always nearly faint when the amount I owe comes up, then I remember I've already made payments on account. Phew
  • nick615nick615 SW IrelandPosts: 1,239
    Without going into specifics, when I was self employed I created an MS Excel form on my PC with suitable columns that  could be totalled up etc.  When I needed to submit a return, I merely attached my Excel file.  They seemed delighted and it saved me a lot of time.
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