Bale Bandit:
“Rent/Mortgage (a portion of this is claimable for office space for running your business (i.e your self employedness)”
Be careful if you are doing this, HMRC will be able to bill you for capital gains tax on the value of the portion of your house you use for business, if you sell your house
turbot:
Bale Bandit:
“Rent/Mortgage (a portion of this is claimable for office space for running your business (i.e your self employedness)”Be careful if you are doing this, HMRC will be able to bill you for capital gains tax on the value of the portion of your house you use for business, if you sell your house
Thank you I wasn’t aware of that, does capital gains kick in if you can show a loss for the financial year in which you sell your house?
turbot:
Bale Bandit:
“Rent/Mortgage (a portion of this is claimable for office space for running your business (i.e your self employedness)”Be careful if you are doing this, HMRC will be able to bill you for capital gains tax on the value of the portion of your house you use for business, if you sell your house
The HMRC wouldn’t be interested in it, if you’re using a room in your house as an office and claiming a small percentage, they won’t query it. I’ve got an office in my house, have moved several times, has never been raised, it’s too small an amount for them to question or chase (costs v income).
limeyphil:
If you need a new clutch, gearbox, headgasket etc, then you offset it against your tax.
Only the percentage of the cost which pertains to business use so if you do 10,000 miles a year consisting of 4,000 business miles and 6,000 personal miles then you can only claim 40%.
If you claim 100% then HMRC will quite rightly ask why you’re claiming mileage rates instead of the running costs. HMRC can and do disallow or give reduced expenses for shared use vehicles if they don’t agree with the percentage you claim you use it for business use.
Winseer:
…So, what you’re saying is that there appears to be an advantage to being self employed over PAYE in this area then?
Not on agency.
As PAYE agency, I’ve not been able to claim it.
You need to claim it yourself by keeping records and claiming business expenses using a P87 “Expenses in Employment” form at the end of the tax year.
Bale Bandit:
turbot:
Bale Bandit:
“Rent/Mortgage (a portion of this is claimable for office space for running your business (i.e your self employedness)”Be careful if you are doing this, HMRC will be able to bill you for capital gains tax on the value of the portion of your house you use for business, if you sell your house
Thank you I wasn’t aware of that, does capital gains kick in if you can show a loss for the financial year in which you sell your house?
Capital gains tax is not affected by how much income you make (or lose). This is from the HMRC web site and refers to Pricipal private residence relief, which the house that you live in qualifies for and so is exempt from CGT. You may find it hard to argue you are not using for business if you have claimed a room as an office on mortgage payments expenses.
Using your home for business purposes
You might work at home, running your business from there. You can still get the full amount of the relief as long as you keep using all of your house as a home. For example, the room you use as an office may also be used as a guest bedroom.
If any part of your home is used exclusively for business purposes, you’ll have to work out if there’s any Capital Gains Tax to pay. For example, if part of your home is used as a joiner’s workshop.
Example
You use 25 per cent of your home as business premises and 75 per cent as your living area.
You sell your home making a gain of £100,000.
You’d be entitled to Private Residence Relief of £75,000 on the part used as your home (75 per cent of £100,000).
You’d have to work out the Capital Gains Tax due on the remaining gain of £25,000 (£100,000 less £75,000).
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The self employed subcontractor is charged between £20 and £30 per week,
(£5 for earnings less than £100pw), with one particular accountancy firm.
£1040 to £1560 per annum will take a lot of mileage & meal fiddling to recover.
The ‘quid an hour extra’ from agencies doesn’t even cover the lost holiday pay,
nevermind these weekly fees.
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Dieseldoforme:
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.The self employed subcontractor is charged between £20 and £30 per week,
(£5 for earnings less than £100pw), with one particular accountancy firm.£1040 to £1560 per annum will take a lot of mileage & meal fiddling to recover.
The ‘quid an hour extra’ from agencies doesn’t even cover the lost holiday pay,
nevermind these weekly fees.
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TBH that shows what little you know about it then… being s/emp or Ltd Co isn’t just about what you earn, and what you can claim, it’s also about how little tax you will pay - package the whole thing up and you’re far better off than PAYE. I’ve done PAYE full time on the trucks, now as a Ltd Co I’ve probably doubled my income and more than halved my outgoings (inc tax & NI). And the agencies I use pay more than £1 an hour extra as well.
Herongate:
Being s/emp or Ltd Co isn’t just about what you earn and what you can claim, it’s also about how little tax you will pay.
What are you talking about ? Earnings, claims and tax are all directly linked.
You earn, you claim and you’re taxed accordingly.
Herongate:
Package the whole thing up and you’re far better off than PAYE.
Give us some facts and figures.
Herongate:
I’ve probably doubled my income and more than halved my outgoings.
Probably ? You either have or you haven’t. I’ve heard these wild claims before.
Give us some facts and figures.
Herongate:
The agencies I use pay more than £1 an hour extra.
Which agencies and how much do they pay?
What do you claim for that PAYE can’t claim for ?
How much Holiday Pay do you receive ?
How much Sick Pay would you receive ?
How much do you pay the Umbrella Company / Accountant ?
Herongate:
Don’t know the exact figures, ask your accountant.
Typical.
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Conor:
limeyphil:
If you need a new clutch, gearbox, headgasket etc, then you offset it against your tax.Only the percentage of the cost which pertains to business use so if you do 10,000 miles a year consisting of 4,000 business miles and 6,000 personal miles then you can only claim 40%.
If you claim 100% then HMRC will quite rightly ask why you’re claiming mileage rates instead of the running costs. HMRC can and do disallow or give reduced expenses for shared use vehicles if they don’t agree with the percentage you claim you use it for business use.
You claim 100%, If hmrc want to knock a bit off then that’s up to them. and it’s all business miles, You should never make it too easy for them. 
Dieseldoforme:
Herongate:
Being s/emp or Ltd Co isn’t just about what you earn and what you can claim, it’s also about how little tax you will pay.What are you talking about ? Earnings, claims and tax are all directly linked.
You earn, you claim and you’re taxed accordingly. Correct, but it’s how much I can earn, what I can claim Ltd Co v PAYE, and how little tax I have to payHerongate:
Package the whole thing up and you’re far better off than PAYE.Give us some facts and figures. What facts & figures do you want….? How much I earn - won’t be telling you that!!!
Herongate:
I’ve probably doubled my income and more than halved my outgoings.Probably ? You either have or you haven’t. I’ve heard these wild claims before.
Give us some facts and figures. Ok, yes I have, near enough doubled (some years slightly more, some slightly less, it fluctuates) - but I won’t be telling you how much I earn.Herongate:
The agencies I use pay more than £1 an hour extra.Which agencies and how much do they pay? That’s between me & the agencies, I won’t be telling you how much I earn!!
What do you claim for that PAYE can’t claim for ? Think about things you use everyday and start your list
How much Holiday Pay do you receive ? As much as I want, I’m an employee of my own Ltd Co therefore I set my own limits.
How much Sick Pay would you receive ? As much as I want, I’m an employee of my Ltd Co therefore I set my own limits
How much do you pay the Umbrella Company / Accountant ? Accountant - not much, as I do the bulk of the paperwork myself - it’s not hard, then the accountant just signs it off
Herongate:
Don’t know the exact figures, ask your accountant.That was in relation to a comment I made months ago, regarding the daily allowances, I don’t know the exact figure per day / night - excuse me for not knowing, but I don’t need to know, I just enter the number of days / nights worked.
Typical. Typical of what??
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Typical bullshot.
YAMBOL57:
I was advised to go with an umbrella company last year and have found them to be ok I only pay them when i earn over a certain amount and then its about £17.I dont have to worry over anything at all i get petrol allowance of 45 p a mile first 2000 miles i travel then 25 p a mile after that £ 5 a day meal alowance and a lot of other stuff including some form of insurance … all i have to do is send in my expences form and reseipts for extra expences i.e sat nav /mobile phone bill / weekly
dont even have to send petrol receipts .So Im happy but its not everyones cup of tea.
More fantasy but agreed that its “not everyones cup of tea” because some Drivers are better off on PAYE. I wonder who advised you to go Umbrella - How much are they making out of you ? Your £17 is cheap because some charge £30 per week.
The tax free travel allowance is 45 pence per mile for the first 10,000 miles per annum then 25 pence per mile after that. But you don’t get the 45 or 25 pence. You only get the tax and national insurance that you would have paid on those amounts. That is 20% tax and 9% National Insurance. So you only benefit by 29% of 45 pence and that is 13 pence. It must cost you more than 13 pence to travel so you’re not making money out of it at all. Some people fiddle their mileage but some have been caught and have to pay a hefty price. HMRC are having a clamp down on all this and will be requiring more receipts from self employed people in the future. They will also increase their random checks on distances from home to place of work. Take heed of the small print warnings from some of these Umbrella companies and remember that they’ll keep your 30 quid a week even if you do get a hefty bill and fine for unpaid back tax and fiddled claims.
The same applies to the meal allowance. The Tax Man is not treating you to any free meals. You shell out a fiver for a meal and he’ll let you off with £1.45 tax and insurance. It’s still cost you £3.55 but you could have enjoyed a coolbox full of goodies from home for less than that.
And don’t forget the Holiday Pay that you have lost. That can be worth £65 per week for 46 weeks of the year. (That’s based on actual true figures of £2995 for six weeks holiday taken in 2011/2012 - and 6 weeks off means that it had to be earnt in 46 weeks.
And finally - these tax free allowances can also be enjoyed by PAYE agency Drivers anyway - but many Drivers simply do not know about them. And they are actually worth MORE to PAYE agency Drivers than self employed because they get 32% back, not 29%.
Yes - not every ones cup of tea so only use an Umbrella if it’s raining.
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Dieseldoforme:
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.The self employed subcontractor is charged between £20 and £30 per week,
(£5 for earnings less than £100pw), with one particular accountancy firm.£1040 to £1560 per annum will take a lot of mileage & meal fiddling to recover.
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I pay nothing, nada, zip and never have done. I’ve always done my own books. It ain’t rocket science.
Conor:
I pay nothing, nada, zip and never have done. I’ve always done my own books. It ain’t rocket science.
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Good if you can do it.
Good if you can make it pay.
I’ve now read some literature that these accountancy / umbrella firms pump out
and they are full of bullshot. Whilst they are NOT telling pork pies, they are misleading,
bending the truth and avoiding any disadvantages. Typical accountants.
If anyone has the names of any accountancy firms that specialise in looking after self employed drivers, I’d be grateful.
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Dieseldoforme:
Typical bullshot.
Why’s that…… just because it doesn’t suit you or you’re not man enough to go for it, you just sit there and criticise those that do. Your excuses are pretty pathetic, all you seem to bleat on about is the lack of holiday pay - I GET HOLIDAY PAY - as I employ myself, and I therefore get as much holiday pay as I want, instead of being restricted to the 4/5 weeks per annum you get on basic hours/money only, no overtime etc.
So how much do you earn, how much do you claim and how much tax do you pay on your wonderful PAYE salary…… you keep asking me, but you won’t say what you on……
Herongate:
How much do you earn, how much do you claim and how much tax
do you pay on your wonderful PAYE salary…… you keep asking me, but
you won’t say what you on……
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You are very rude.
I earn £615 pw
I claim £496 per 4 weeks subsistance
I pay £62 pw tax
I pay £41 pw NI
I bank £512 pw
I have 6 weeks paid holiday pa.
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Quick question IF you are self employed and claiming the tax back at the 45p or 25p rate from the Tax Man do you need to have buisness Insurance ■■?
Fallmonk:
IF you are self employed . . .. . . do you need to have business Insurance ?
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I can’t help you with that - I am Pay As You Earn.
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Fallmonk:
Quick question IF you are self employed and claiming the tax back at the 45p or 25p rate from the Tax Man do you need to have buisness Insurance ■■?
No you don’t need to have Business Insurance to be self-employed, you do need to ring the HMRC and let them know that you are self-employed or self-employed/PAYE mix etc