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It amazes me the amount of self employed/sole traders that have no handle on their accounts.

The simplified 45p then 25p per mile is great if you use a car and subby a lot, but if buying/leasing a van and using it for business use it's terrible imo. I use the simplified method if I take the family car to do quotes, as the van is all business use I put all costs on it through on it. Worth noting the 45p per mile has been the same since the 90's, but the cost of everything has gone up a lot since then.
 
afaik, taxman allows you 25% of purchase price 1st year, then 25% of 75%, then 25% of 50%, then final 25%. (percentages referred to purchase cost), then it's written off as a "dead" asset, but you may have to pay tax if you sell it. if the HP has interest charges, you should be able to claim against that also.
That’s old hat now.
Can claim up to £50 grand in one go.
I believe it was 40% in the first year then 25% of what’s left each year after.

As for the hire purchase payments, it’s up to you how you file them as expenses.
You can either put in the total purchase price plus interest in the first year, or just put the monthly payments down as they occur.

Remember that whichever way you do it, you only get 20% of what you claim back.

If you happen to be VAT registered, then you can also claim that.

If you claim the mileage allowance, then you can’t claim the purchase price, as the mileage allowance is for using a private vehicle for work.
The allowance covers fuel, tax, maintenance and insurance.

Actually, it was 44p a mile up until about 5 or 6 years ago.

Depreciation only really applies if you are counting the vehicle as an asset, and when you come to dispose of the vehicle.
If you manage to sell the vehicle for more that it has depreciated to, the Tax man will not come knocking on your door for a slice of the profit.
However if you sell it for less, he may come asking for an explanation.
 
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I dont have an accountant just yet, i work for a company and have just recently registered myself to napit to sign off my own work and build up to eventually go self employed! Thats the dream anyway..

need to find myself a good accountant

Are you registered with HMRC for SE via your private work?
 
Are you registered with HMRC for SE via your private work?

No i have not registered with them yet, i only have a few months trading under my belt but i have kept a record of all jobs done so far and have a separate account ive been paying 20% of my profits into.

i believe i have until january to register and declare last years tax returns? Just trying to find a local accountant to sort everything out for me
 
No i have not registered with them yet, i only have a few months trading under my belt but i have kept a record of all jobs done so far and have a separate account ive been paying 20% of my profits into.

i believe i have until january to register and declare last years tax returns? Just trying to find a local accountant to sort everything out for me

You need to save for class 4 ni too so that's about 9% on top of the tax ...
 

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