paul1966 Posted November 12, 2008 Report Share Posted November 12, 2008 next year i am going to start doing some work as a side line to my full-time job that will probably earn no more than 3k a year. everything will have to be done above board so i am wondering if anyone else does something similar and how they sort things with the IR. i am assuming that working from home i can offset tax against any outgoings and hopefully not have to pay any at all or very little. any help appreciated Quote Link to comment Share on other sites More sharing options...
Nial Posted November 12, 2008 Report Share Posted November 12, 2008 i am assuming that working from home i can offset tax against any outgoings and hopefully not have to pay any at all or very little.any help appreciated Ho ho ho, the IR approved amount for a home office is something like £3/week unless you can demonstrate that expenses are purely for business with no personal use. Also if you dedicate a room as an office you _can_ be assessed to pay business rates on it and could be due capital gains on that portion of the house if you sell it. You'll probably end up paying most of your income at your full rate of tax. Having said that I'm not an accountant, it's worth speaking to one. Nial. Quote Link to comment Share on other sites More sharing options...
sirusman Posted November 12, 2008 Report Share Posted November 12, 2008 Nial you are pretty much spot on there Quote Link to comment Share on other sites More sharing options...
al4x Posted November 12, 2008 Report Share Posted November 12, 2008 simply put you'll need an accountant if you want to start offsetting many costs as a lot of it is loop holes and they will know which are best. It will cost you a couple of hundred but should save that in tax. Quote Link to comment Share on other sites More sharing options...
rocksaplenty Posted November 12, 2008 Report Share Posted November 12, 2008 Trawl through the old posts on this website: www.taxationweb.co.uk My advice would be to get an accountant for the first year. Then use the accountant's return as a template for future years. There are no totally solid rules as far as the IR are concerned. I used to claim my full mortgage as a business expense even though I was only using one small room as an office. During an IR investigation they picked up on this but let me have it. Quote Link to comment Share on other sites More sharing options...
rocksaplenty Posted November 12, 2008 Report Share Posted November 12, 2008 found it... http://www.taxationweb.co.uk/tax-clinic/pr...fice-costs.html Quote Link to comment Share on other sites More sharing options...
Dr W Posted November 12, 2008 Report Share Posted November 12, 2008 My advice would be to get an accountant for the first year. Then use the accountant's return as a template for future years. There are no totally solid rules as far as the IR are concerned. I used to claim my full mortgage as a business expense even though I was only using one small room as an office. During an IR investigation they picked up on this but let me have it. I'm amazed IR let you have that, that is totally unheard of. Was this recently? Just be warned that using a template is probably fine but tax rules do change every year so it's worth having things checked every now and again to make sure you're doing things right. Quote Link to comment Share on other sites More sharing options...
paul1966 Posted November 12, 2008 Author Report Share Posted November 12, 2008 was rather hoping that there would be some sort of rebate for small start up businesses i'm not looking at making mega bucks, just top up my full-time salary, looks like the incentive to better yourself is -NIL- no wonder the black market is booming. Quote Link to comment Share on other sites More sharing options...
Nial Posted November 12, 2008 Report Share Posted November 12, 2008 was rather hoping that there would be some sort of rebate for small start up businesses i'm not looking at making mega bucks, just top up my full-time salary, looks like the incentive to better yourself is -NIL- no wonder the black market is booming. Again, ho ho ho, what do you expect after 10 years of new labour. Have you not heard about the 'Family business tax' that's being introduced? This is going to hammer a lot of small family businesses throughout the UK. Nial. Quote Link to comment Share on other sites More sharing options...
bignoel Posted November 13, 2008 Report Share Posted November 13, 2008 KEEP IT ALL ££££££ .no jokeing get a accountant let them sort it out for you . Quote Link to comment Share on other sites More sharing options...
amateur Posted November 13, 2008 Report Share Posted November 13, 2008 next year i am going to start doing some work as a side line to my full-time job that will probably earn no more than 3k a year. everything will have to be done above board so i am wondering if anyone else does something similar and how they sort things with the IR. i am assuming that working from home i can offset tax against any outgoings and hopefully not have to pay any at all or very little.any help appreciated What sort of business are you looking at? Obviously you can claim for your direct business costs and expenses and it is possible to claim a percentage of premises costs if you are using (say) a room in your house as an office or storage. However different businesses have non-statutory concessions with HMRC, and you can also, in certain circumstances, offset any losses you may make against any other income, so talk to a chartered accountant who is dealing with current tax issues. If you are looking for a business, can I refer you to my website www Ian Quote Link to comment Share on other sites More sharing options...
rocksaplenty Posted November 13, 2008 Report Share Posted November 13, 2008 I'm amazed IR let you have that, that is totally unheard of. Was this recently? Just be warned that using a template is probably fine but tax rules do change every year so it's worth having things checked every now and again to make sure you're doing things right. About 5 years ago. To be honest, I was a bit shocked. But, the point being that the IR can be very flexible, or lazy, when they want to be. Just a slight note of caution about relying on an accountant: When, the tax man comes-a-knocking, you are in a much better position if you actually know what is in your account when you sign the tax return at your accountants. Also, accountants now have a legal obligation to report any suspicous bits in your accounts and are not permitted (by law) to let you know that they have done this. Quote Link to comment Share on other sites More sharing options...
Dr W Posted November 13, 2008 Report Share Posted November 13, 2008 Also, accountants now have a legal obligation to report any suspicous bits in your accounts and are not permitted (by law) to let you know that they have done this. By suspicious, you mean evidence of money laundering or breaches of the theft act. This includes writing back overpayments from customers to the profit & loss account, just because a customer is stupid enough to pay you twice doesn't mean you can keep it. By the way we don't report every thing, if I'm suspicious of something then I report to my money laundering officer who then decides whether a report is necessary. Quote Link to comment Share on other sites More sharing options...
Maiden22 Posted November 13, 2008 Report Share Posted November 13, 2008 (edited) . Edited December 1, 2008 by Maiden22 Quote Link to comment Share on other sites More sharing options...
Dunkield Posted November 13, 2008 Report Share Posted November 13, 2008 don't take advice from people on internet forums and you won't get better advice than that on an internet forum Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.