I am preparing accountstax return for my sister and want to ensure that I am claiming all that I can. The work she undertakes is not home based but she is often home at lunch time and evening calling her clients to arrange the next medical visit. She stores and cleans her medical equipment at home and obviously writes up her books there. I have the following questions:
Am I correct in thinking that I can claim a flat rate of £4 per week for use of home. She has not kept records of all her bills so to allocate useage on floor area would n't work.
Her mobile phone is used 80% for calls to her patients/clients - can I claim 80% back - would I need to prove all of the calls were work related
Is there a claim that can be made for work uniforms - I cannot find the link on HMRC website. Is the claim just for renewal or can you make a claim for cleaning of it?
She has not kept records of her postage and stationery expenditure as it was minor amounts but of course these can add up. In your experience do you think that it would be acceptable to put in an estimated cost based on that incurred last year? We are only talking a few £00 but it all helps?
At the moment she is claiming mileage of 45p per mile and all of her work is local. I think that it is possible to introduce the car into the business and claim capital allowances on it. As she lives in the centre of town approx 80% of the car useage is for business purposes. Would I need to restrict the capital allowances to 80% or would that just be the insurance, tax etc etc. Also, in your experience have you found that it is more efficient from a tax point of view to have the car in the business rather than claim business miles at the the prevailing rate?
Is there anything else that you are aware that I can claim?
2) You can claim a percentage of call from mobile. You have to be able to back up your assumptions in the event of an inspection. HMRC have even suggested before that if you are on PAYG mobile that you take a reading of the credit left before and after you make the call and log it. I think that is a bit extreme to say the least but with contract phones you can easily work through a couple of bills to show your assumptions (and re-check them every so often)
3) Does the work uniform have a logo? Care - there is a difference between a worker and self employed in this regard when it comes to how to claim.
4) Postage and stationery - A valuable lesson to learn - keep the receipts even for minor amounts as it all keeps the tax bill down. No receipt no claim in my book, although others will suggest if you can see it going out of the Bank account then here is an argument for putting it through. If you put something through you need to be aware that in the event of an inspection, if you dont have the proof then it can trigger the items being disallowed and potentially fines for inaccurate returns.
5) How long has she been Self employed and claiming mileage allowance? Is this her first year?
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Oh and meant to say - HMRC run some rather good and totally free webinars on this subject. Ive not done this one - I dont do s/e tax, but Ive been on a couple of others.
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
At the moment she is claiming mileage of 45p per mile and all of her work is local. I think that it is possible to introduce the car into the business and claim capital allowances on it. As she lives in the centre of town approx 80% of the car useage is for business purposes. Would I need to restrict the capital allowances to 80% or would that just be the insurance, tax etc etc. Also, in your experience have you found that it is more efficient from a tax point of view to have the car in the business rather than claim business miles at the the prevailing rate?
Hi Fiona
Further to Joanne's comments, if she is already claiming 45p mileage rate you will need to stick with that until she changes her vehicle, as you can't swap and change
As a guide though it will be 80% capital allowances as well as 80% on all other motor expenses. Double check the C02 emissions, as they have changed this year, and affect the WDA.
Whether it is advantageous or not can only be judged on an individual basis. I have a taxi driver on my books and it is better for him to claim the expenses, but in my case my only usage is a 140 mile trip once a month, so for me it's better to claim 45p a mile.
Cleaning uniforms - I'm not sure there is any guidance for the self employed, although employed workers can claim if they have to wash their uniforms at home.
Hi Joanne
Just for my clarification, does the uniform have to have a logo? I had assumed that if it was something like a tabard that would be ok. I know that with dual purpose clothing (eg Tee shirt) a logo makes it ok.
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
