What do you/can you claim back/offset against tax?

[Fleegle]

It's never a good idea to attempt to claim every penny you earn which would be liable to higher tax against expenses in order to keep your liability within the lower tax bands. It looks a wee bit 'coincidental' don't you think?

You may only claim expenses based on the receipts you have given your accountant. There is a bit of leeway, which she can advise you on. Rule of thumb however is..no receipt (or proof of payment), then no allowance.

You mention you travelled 8,700 miles. If you have already claimed mileage expenses from your clients, then you are also liable for tax on the payments you received as travelling expenses. If you paid your travelling expenses from your own business, then you are entitled to offset them against your own liability. This includes all motoring expenses including servicing, insurance, MOT, repairs, fuel, and lease/hire purchase payments on your vehicle. If your travel costs have already been claimed from your clients, however, you cannot claim any expenses whatsoever, as your clients will claim relief on the travel expenses they have already paid you. i.e. relief cannot be claimed twice for the same journey.

Hope this helps.

Fleeg.



Fleeg.

[Sinister]

i understand.. But as all of us, just trying to save as much as i can
The problem i've got is that she's not bothered about going an extra mile for me and she doesn't seem to have a creativity for leeway..
By the way, when is the deadline to submit all the paperwork?

[Fleegle]

I'm in Ireland, so a Jan 1st to Dec 31st tax year applies. My paperwork is at the accountants, and my tax payment date for year end 31/12/08 is Nov 17th 2009.

I've been out of UK a while, but when I was there an April 5th to April 4th tax year was in force. If this still holds, you should have your books in soon, as I remember your tax would be due in early January. (Please someone correct me if I'm wrong here..it's been a long time).....

Don't forget also, that preliminary tax for the following tax year is also usually payable at this time. If it is your first year of trading, you can extend your tax year, dependent on startup date. This can postpone your liability, but it doesn't mean you don't still owe it!

Unfortunately there isn't much room for creative accountancy with regard to locum pharmacists.

Fleeg.

[DavidS]

In the UK the deadline may already be past, unless you are filing them online. Risky.

If you are a limited company you set your own dates, I recall. You will need to consult an accountant on that one.

I had an accountant who went the extra mile, but who charged me triple or quadruple what I'm paying now. I don't think they saved me any more money, but they were certainly approachable, and boy, did they know how to charge. When I was a yuppie they were necessary, probably, but not any more.

[johnep]

My year starts May 1st, giving an extra year before tax paid. All expenses incurred concerned with the business may be claimed. With regard to the paltry mileage paid by multiples, this is part of your fee and you will pay tax on it, therefore can claim INR standard rate of 40p/mile. I too had a top brass acct for many years who charged a lot but I did not know any better, When I earned above the threshold, I paid sufficient into a pension fund to mop up the surplus. As I was over 65, this meant that I got tax relief on the payment, received 25% back tax free and get a sum every year from the provider.

Controversial point at present is lunch allowance. The INR allow its own staff to claim £6.50/day without a receipt, although they have to 'guarantee' they spend this.

I have never claimed while a locum, but if called out and have to buy lunch, then claim full amount as subsistence. Never had a problem.
johnep

[Sinister]

You mention you travelled 8,700 miles. If you have already claimed mileage expenses from your clients, then you are also liable for tax on the payments you received as travelling expenses. If you paid your travelling expenses from your own business, then you are entitled to offset them against your own liability. This includes all motoring expenses including servicing, insurance, MOT, repairs, fuel, and lease/hire purchase payments on your vehicle. If your travel costs have already been claimed from your clients, however, you cannot claim any expenses whatsoever, as your clients will claim relief on the travel expenses they have already paid you. i.e. relief cannot be claimed twice for the same journey.

Hope this helps.

Fleeg.



Fleeg.

aaaahh.. this is even more complicated then i thought
So can I claim my mileage twice? The one i received from clients (usually first 40miles deducted, etc) and then claim my actual mileage at 40p/mile (7800miles in my case)?

Another thing just to make clear: If i don't claim mileage at 40p/mile, can i claim the expences on my actual motoring (like petrol, mot, servicing)? Is there a limit for that? Reason being is my car broken down (engine problem) and i spent over 3k just for repairs last year. Not even mentioning new tyres, etc. Is there a way to claim all that? I would imagine there will be something to do with private use and business use then, isn't?
This is my first year as a full time locum and everything seems to be so complicated and confusing..

[johnep]

INR give you a choice. Mileage claim or percentage of running costs based on business mileage vs private mileage. If new car, then mileage, if banger then percentage running/repair costs.
johnep

[Sinister]

ok. I think i'm getting there Who checks the percentage of business miles vs private miles? Just a thought: what if I got a weekend car which i only use for personal stuff? Does that mean the car I'm using on weekdays for work is purely for business?
Or is there a standard percentage? would imagine:
7 days = 100%
5 working days = x.
x= 71.4% ?

p.s. I'm not a dodgy person, just one to know how the system works and what is allowed and what is not allowed

[johnep]

You should be ready at any time for an INR in depth investigation. I advise a couple of diaries. One page to view as the master, one week to view as your pocket. Reconcile them at least once a week. Record where you are booked and if you actually worked. You should record there and back mileage for locums and everytime you fill up. I have a record of every day going back to 2000 and can justify all claims. I can look up the % business vs private at any time. With the 'phone you can claim part cost. Your acct will advise. I keep a mobile and use mainly for business. I claim 80-90% total cost.

As long as you can justify your claims and show that they are accurate, you should have no problems.
johnep

[wwjd_andy]

Just joined the post. Love post 1 - claiming for TV license! We're not MPs!

I say let the MPs have all of their expenses, as long as we can haev them too! Still it's a drop in the ocean compared with the bankers when the tide went out!