urgently need some insight into partners self employed vehicle costs please!!
can all HP payments go through as an expense? If also used 50% personal?
Can all fuel, insurance, servicing and other costs go through as an expense if used 50% of the time for personal use?
Can someone explain what the attached means too? Vehicle bought in 2012 - is tax relief being claimed on the original value still?
any help greatly appreciated - reason for asking is because I'm trying to keep a roof over child's head whilst ex partner writes off all his income. Am trying to understand if the £7k vehicle running costs a year are legitimate.
thank you
-- Edited by Lulu3376 on Thursday 12th of May 2016 01:06:45 AM
-- Edited by Shamus on Wednesday 29th of June 2016 12:08:04 AM
Hi Lulu
I would suggest you get an Accountant to review all of the paperwork so that a case can be put together, or at the very least the right kind of questions can be asked of your ex in any court case or other hearing. Having that expert on hand to review the answers from your ex is important too, rather than us trying to second guess certain aspects of the accounts with only partial information. Plus its something we could not advise on given the nature of this site.
If you want to do some digging yourself of course I understand so suggest you look up certain key things on HMRCs website, all using the search term sole trader included ( as it can get messy as you will be directed to Limiteds as well) eg allowable expenses for the self employed, private use of a business vehicle, capital allowances for a vehicle and impact on self assessment. Also remember that every expense should be accounted for by a bit of paper. You can ask for proof of mileage for business purposes, which need to be kept for in then event of an HMRC inspection. The Local Incomes tax reform group will have some useful info for you I think.
On a personal note, a word of caution, the only winners in this are usually the solicitors so if it looks like you are flogging a dead horse then dont and remember probably the only one you can rely on at this time is you! (speaking from experience).
Good luck
__________________
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
I wasn't sure whether to ask on here and thought may not be appropriate due to the nature of the sight but it was a last resort.....it's such a minefield!
I'll take up your suggestions and thank you for the good luck. I think I'm going to need it!!
I will be honest with you Lulu. Im afraid that no matter what you stir up, its often the luck of the drawer on the day with the judge you get.
I had a PILE of stuff that proved my ex's court affidavit was a bunch of total tosh, but the male judge who heard the case didnt give a damn, didnt even give me a chance to speak, although when I took it anyway and made my point, threatened me with contempt of court. Moron! I was left with not enough money for nappies! (Wasnt earning as still on maternity leave). Hence my words of caution.
Although several years later, when we ended up in court again, I got a female judge who listened to us both, then wiped the floor with him for his pathetic attempt at another bunch of lies. But I tell you what was even better than that - the look on his face when he saw my salary was four times what his was. (He still had to cough up as it was for his son, not for me). Getting your independence back will be the best feeling, but I understand why that might seem a million miles away.
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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
Hi Lulu,
not withstanding joanne's remarks about getting proper representation, only the interest element of the HP can be put through as an expense. usually in the accounts this will be in its entirety and when the accountant prepares the tax computation any personal use (i.e. the 50% you are suggesting) gets added back to the profit. The same applies to the other motor expenses. You would probably do better in asking to see the tax computation as opposed to the accounts to ascertain your partner's income, it my well show an additions £3,500 in profit if the accountant has added back 50%.
Those attachments seem to be implying that no writing down allowances have been claimed on the additions that have been capitalised.
To be clear these are just indications rather than professional advice.
Although several years later, when we ended up in court again, I got a female judge who listened to us both, then wiped the floor with him for his pathetic attempt at another bunch of lies. But I tell you what was even better than that - the look on his face when he saw my salary was four times what his was.
Oh that's brilliant Joanne and it's a shame that you had to go through that first whitewash in the first place.
I've often said that it's down to the Judge you get on the day. Year before last I assisted a client who was going through a bankruptcy case because they had signed a pg for a Ltd Co. The Ltd Company was wound up and the Director was made bankrupt. The PG was an abomination with the majority of it completed afterwards by the trade supplier. They even got the Directors surname wrong, completely!!
They applied to have the statutory demand set aside based on this but the Judge dismissed it and allowed the statutory demand!! I was there as a McKenzie friend and I could tell the Judge had already made his mind up.
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
I would still happily kick that judge in the shins if I saw him today, the ex is buried under the patio! LOL. He was a City fan, so the writing was on the wall! You shouldve heard seen him crying when he saw my redundancy payout - that was hilarious!
With yours, I would have taken that one further as how can they enforce a PG if its in the wrong name? I wouldve suggested it wasnt me that had signed it!!! Although I suspect having his signature on the form wouldnt have helped that argument but getting the name wrong is a classic and valid reason for things being thrown out of court! Mind you, knowing what I know of the legals from the wording of PGs my mantra is and always will be NEVER EVER EVER EVER EVER sign a PG. My son knows it too, from a young age, along with the fact that I wouldnt even do one for a family member, EVER. If I wanted to help that family member out its by way of the cash only and if I havent got it, sorry but I cant help you! NEVER EVER EVER EVER EVER sign one.
__________________
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
My 2p - I've not looked at your attachments. Either costs or AMAP can be used. Not both, £7k sounds expensive....has both been claimed? Yes only 50% of HP can be claimed if 50% is personal. Might be worth looking for a forensic accountant. Too many variables for a forum. If you think you're being taken for a ride, chances are, you probably are. Rob made a good point about not claiming WDA - I'd do that to keep my tax bill high...then when divorce is over, claim then. All based on opinions.
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Johnny - Owner of an overly-active keyboard.
A man who can read, yet doesn't, is in no way wiser than a man who can't.
