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

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

    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

  • #2
    Re: What do you/can you claim back/offset against tax?

    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

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    • #3
      Re: What do you/can you claim back/offset against tax?

      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.

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      • #4
        Re: What do you/can you claim back/offset against tax?

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

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        • #5
          Re: What do you/can you claim back/offset against tax?

          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.

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          • #6
            Re: What do you/can you claim back/offset against tax?

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

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            • #7
              Re: What do you/can you claim back/offset against tax?

              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

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              • #8
                Re: What do you/can you claim back/offset against tax?

                Originally posted by dave20 View Post
                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?

                Comment


                • #9
                  Re: What do you/can you claim back/offset against tax?

                  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

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                  • #10
                    Re: What do you/can you claim back/offset against tax?

                    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?

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                    • #11
                      Re: What do you/can you claim back/offset against tax?

                      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.
                      Last edited by Fleegle; 8, September 2009, 09:29 PM.
                      Don't Stop Believing

                      http://youtube.com/watch?v=rnT7nYbCSvM

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                      • #12
                        Re: What do you/can you claim back/offset against tax?

                        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?

                        Comment


                        • #13
                          Re: What do you/can you claim back/offset against tax?

                          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.
                          Don't Stop Believing

                          http://youtube.com/watch?v=rnT7nYbCSvM

                          Comment


                          • #14
                            Re: What do you/can you claim back/offset against tax?

                            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.
                            ....just my opinion

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                            • #15
                              Re: What do you/can you claim back/offset against tax?

                              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

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