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

[zakkaz]

Can we make a definitive list that applies to pharmacists. Correct me if I'm wrong as I just started locuming.
Obviously keep ALL receipts (photocopies sufficient to provide to accountant?). How far do you need to go to prove something is NEEDED for work? How much, of the total EXPENDITURE, can one expect to receive back?

transport/travel (petrol, bus/train tickets)
car costs (insurance, MOT, parking costs)
pharmacy insurance
pharmacy registration fee
accountancy costs for the self-employed/ltd co types
stationary (pens, paper, computer ink, folders, etc)
laptop
internet costs
mobile phone bills
TV license
office space (what £ figure/month? how to work out?)
dry cleaning (?)
books
courses

[johnep]

Can only claim TV licence if necessary for you to work. 'Strictly' does not count. With regards to car, can claim either mileage or proportion of car expenses involved in travel to work.

Golden rule : Is this necessary for me to work as a locum?

Computer etc all claimable. Your acct will advise on typical allowances for use of home etc.
johnep

[dave20]

The amount you get back when claiming expenses is what you save on Tax and NI.

Basic rate tax payers (upto 40,835 pa) from £100 expense would save £20 Tax (20%) and £8 NI (8% class 4 ni for self employed) total saved £28.

If you are employed on PAYE, you can't claim expenses.

[johnep]

Plus the fact that you pay tax in arears and can therefore invest the money set aside in premium bonds.
johnep

[dave20]

A higher rate tax payer (over 40,835 pa) from £100 expense would save £40 Tax (40%) and £1 NI (1% class 4 ni for self employed) total saved £41.

[Sinister]

Guys, how about the dry cleaning?
I also heard that you can claim up to £7/day for lunch? Does anyone know?

[dave20]

If you're self-employed you can claim the dry cleaning and food, however you can only claim what you've spent.

Some employment services or umbrellas (rather than self-employed) will tell you about dispensations for £x per day, etc, but you can still only claim it if you have spent it; and kept the receipt to prove it.

The widest range of expenses and lowest employees NI comes with self employment. also zero employers NI which is a big bonus over umbrellas.

Try Sound Administration Services

[Sinister]

If you're self-employed you can claim the dry cleaning and food, however you can only claim what you've spent.

Some employment services or umbrellas (rather than self-employed) will tell you about dispensations for £x per day, etc, but you can still only claim it if you have spent it; and kept the receipt to prove it.

The widest range of expenses and lowest employees NI comes with self employment. also zero employers NI which is a big bonus over umbrellas.

Try Sound Administration Services

Oh sugar.. I obviously don't have any receipts for my lunch.. I'll have to check if I got any ow my weekly shopping receipts. I guess I can say: I'm spending £35 once a week on my lunch..
Does anyone know how much does the dry cleaning cost? And how often you do it? I guess if my wife or my friend 'has an equipment' she/he can issue an invoice for her/his services?

[johnep]

I doubt if you can claim for general shopping. If I take my own sandwiches, no claim, if I have rushed out or forgooten and have to buy sandwiches, then I claim. It must be clearly identified with working as a locum.

When I was a rep the co got caned by IR as said expenses paid to reps were a benefit. Our sales manager then asked what was allowance given to IR staff when out of the office (about £6/day back in the 90s). So we claimed that and did not have to furnish receipts as the IR staff did not have to.
johnep

[Sinister]

Just for curiosity:
How much money roughly you manage to put through as expenses?
Sorry, not trying to get in personal things, but just want to find out whether my accountant does know what she's doing...
In 2008-2009 i made about £42k which is £7400 over £34.600.
Is £7400 reasonable amount of money to put as expenses?
Traveled 8700miles ... The rest of the expenses I reckon is pretty general to all of us?