Quote:
Originally Posted by tysfoot  i'm going to register as self employed in march and i didnt know you can claim so much back do you get this back at the end of the tax year in a lump sum. out of interest how much do accountants charge roughly.
So if i go self employed and i buy a 2 grand van i can claim that back ? |
Hi Tysfoot,
You don't actually "Claim" anything back as such, what you do (in very basic terms) is prepare accounts showing how much you have earned, what you have spent and you deduct one from the other to give you a "profit". This profit is then the basis for your tax calculation.
Incidently vans are classed as "Fixed Assets" and are not directly tax deductable. What you do however, is claim a "capital allowance" against your fixed assets on your tax return. For instance if you spend £2000 on a van, you would be able to claim against your tax bill £500 in the first year (25%), then 25% of the reduced balance of £1500 in the second year i.e. £375, and so on.
As for accountants charges, how long is a piece of string? Go to the likes of Price Waterhouse Coopers and you may well pay all your profit to them!!! If you use a smaller practise the fees vary so much you will need to get meeting to get an idea of the what they would charge.
Grumpy