expenses and taxman

[ian.settle1]

Be carefull how much undeclared cash jobs you do.

If you get inspected they go through your personal bank statements and work out how much you are spending. They dont tell you this of course, and then you have to fill out a form detailing your lifestyle expenditure. They then put the two together and if your lifestyle cost is more than you have drawn out of the bank in a year they then confront you with this and ask you where the rest of your money is coming from.

At this point you have painted yourself into a corner and there is no way out other than the costly one.

Tax inspections can happen to any self-employed person at any time, they can go back seven years and it can drag on for months (18 months in my case).

It's a absolute effing nightmare !

I believe they can go back even further than this, it is only you who can claim any tax etc back from seven years onwards

 

[wattsup]

A good accountant is worth 9-months in prison -

 

[salisbury spark]

Yeah met bloke who was paid cash for most jobs - he said he cant let it show anywhere so just spent the money on women,women,women....- was a very happy guy...

Also Most business people i meet have 2 books - 1 for the taxman and the other the real figures. - Seems best idea, at last if taxman comes and says we think you owe us this much you have the other books to refer too and come clean(unless better off not coming clean).

Most customers pay me cash and are quite suprised to get a receipt with my details on it and what was done...

Not to clear what u can claim for eg. workwear. - hence this thread.

 

[robbie_98]

Your local tax office should offer free courses to clarify what you can and can not claim back.

 

[professional]

Other one is that the accountant may also be able to class his time doing work for you as a tax expense for as well

No he can`t - you do not have to have an accountant so you can`t claim for his pound of flesh!

Also - remember YOU (not the bean counter) are responsible for your books accuracy!

 

[ccrowe]

Remember, that even if you have an accountant, YOU are responsible for your accounts*. If your accountant cuts corners, or allows expenses that he shouldn't, it may seem great and save you loads of tax - until the taxman tells you otherwise. So, make sure that whoever you choose is not likely to get you shafted. By all means, claim all you can, but don't take the P or Hector will have you.

* doh, just seen the post by professional.