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Advise: First Year Without an Accountant

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  • Advise: First Year Without an Accountant

    Hi,

    I'm looking for a little advise please?

    I have been self employed for four years and this is the first return (08/09) I will be doing on my own.

    I'm wondering if anyone can help with some questions I have:

    i) I do 50% of my work from my flat. Because I do this is there a certain percentage that I can deduct from my annual interest only mortgage? If so, what %?

    ii) I have a mobile phone bill that is my main telephone and used mainly for work. Is there a % I can claim against?

    iii) Last year rented out my flat for six month in order to settle a debt. For this period I moved back to my parents house. Do I declare the rent I recieved as earnings as I still had to pay the mortgage and it ended up costing me more than it would have done staying at home?

    If there is any help you can offer it would be greatfully recieved.

    Also is there a website or helpline number that would answer any problems I'd have about the above?

    Thanks for your help!

    (-:

  • #2
    1. You can, but think carefully. Whatever percentage you pick, the tax man can claim as a percentage of any profit you make when you sell your flat. (Capital gains tax).
    2. If your mobile is your business phone put all the costs down as an expense but if you use it for personal calls look at the bills and take that bit off the total.
    3. Yes you should, but you should have tax deductable allowances to do with your flat which should knock out any profit.....so that should make your tax bill go down......but I'm not ofay with the details. You need advice from someone who does buy to let, or ask your local tax office....

    My son's accountant says claim for whatever you think you can as long as you think you can put forward a sensible argument to support what you are claiming for - if the Tax man comes to call.
    I say check it out with your friendly local tax office first and get their advice in writing ('cos I hate an argument).

    You can usually find the answer to any? question on
    www.businesslink.gov.uk
    and
    www.hmrc.gov.uk
    but you can float around those websites like a piece of flotsam sometimes (but you do stumble upon interesting things) so ringing your local tax office (in the phone book and on the Web) gives you a human being to talk things through with.
    They don't always have the answers at their fingertips, however, which is why I said get it in writing - they'll be more careful about what they say.

    AnnieAnna
    (Beware of moving goal posts.)

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