what can be tax deductable... - Page 2 - TilersForums.co.uk | Tile Forums

**grumpygrouter** · 24-11-2007

Quote:

Make a loss - tools, expenses etc and it will be offset against your tax bill on earnings from other sources - other income or pensions etc

Also if you have no other income, losses can be carried forward and used against future profits.

Would recommend ANYBODY who is self employed organise their book keeping as early into self employment as possible. It has a habit of being put to one side until "I am less busy" only to find that 7,8,9 months down the line you find you are running out of money.

It appears that most of the people on here are computer literate and I would recommend that research in to accounting packages be done and to try and implement one of these packages into an administration regime. The software that I use (and support) is called MYOB. Have a look at www.myob.com/uk and you will get an idea of how it looks and works. Currently their software is available at 1/2 price until 30th November as there is an upgrade due early next year.

I have also attached a summary sheet for info.

Grumpy

**CLAYS TILES** · 11-12-2007

nice one grumps

Corky · 19-12-2007

Great thread, I went to the MYOB site and had a look ,the prices were great .then I clicked the Ireland link ,wow big difference in price (paddy price

) Corky

Ric · 20-12-2007

Go on hmrc website and download their help guide on self employment it details all you need to know.

Corky · 20-12-2007

Will do ,thanks..corky

davy_G · 20-12-2007

Hi all,

When i did my tilign course we where given a basic accounting package in excel. It is basic but has a purchase and sales ledger with quick look summary, expense and invoice book as well.
Helps to keep a grip of everything and might be a good starting point for a sole trader by themselves. I use it and after adjusting the format a bit and running it by my accountant so everything he wanted at year end was included it is going well.

**grumpygrouter** · 20-12-2007

Quote:

Originally Posted by davy_G

Hi all,

When i did my tilign course we where given a basic accounting package in excel. It is basic but has a purchase and sales ledger with quick look summary, expense and invoice book as well.
Helps to keep a grip of everything and might be a good starting point for a sole trader by themselves. I use it and after adjusting the format a bit and running it by my accountant so everything he wanted at year end was included it is going well.

Not a bad starting point Dave, ideally could do with all the sheets being integrated into one work book and having links between each section to aid flow of information.

If you can operate that successfully, you would have no problem using MYOB which does all the hard work for you. i.e. enter the details of your purchase, it enters the appropriate amount in the ledgers and bank if appropriate. With the system you are using, you need to move between work books and transfer some details across, giving rise to potential data entry errors.

Grumpy

**pjc** · 20-12-2007

just shows you boys and girls how usefull this forum is to some of us well done Grumpy

not that i would think about cooking my books

**grumpygrouter** · 20-12-2007

Quote:

not that i would think about cooking my books

Course not Pete!

Grumpy

mickmcc · 20-12-2007

Thanks Very Much For All The Replies People, Need A Bit Of Help Here If You's Dont Mind, I Currently Work In My Old Job Monday Tuesday Wednesday And I Tile On A Thurs Friday And Weekend If Needed, Ive Not Registered Yet As Only Been Going Nearly 2months, To Put It In Easy Terms, When I Buy Tiles And Materials Do I Just Keep Every Reciept I Get And Put To One Side, And When I Ring Hrmc Obviously Need To Let Them Know About My Other Job But What Differnece Does This Make To That Tax If Any. Cheers.

**grumpygrouter** · 20-12-2007

Quote:

Originally Posted by mickmcc

Thanks Very Much For All The Replies People, Need A Bit Of Help Here If You's Dont Mind, I Currently Work In My Old Job Monday Tuesday Wednesday And I Tile On A Thurs Friday And Weekend If Needed, Ive Not Registered Yet As Only Been Going Nearly 2months, To Put It In Easy Terms, When I Buy Tiles And Materials Do I Just Keep Every Reciept I Get And Put To One Side, And When I Ring Hrmc Obviously Need To Let Them Know About My Other Job But What Differnece Does This Make To That Tax If Any. Cheers.

There is no problem being employed AND self-employed at the same time. Main difference you will notice is that you will receive a tax return every year and you will be required to pay Class 2 national insurance contributions of (currently) £2.20 per week. Any PROFIT you make in excess of the personal tax allowance threshold of £5225 will attract Class 4 national insurance deductions of 8% of the balance, and you will be liable for 22% tax on pretty much all your profit because of your employment income.

Bearing in mind that your employment income will probably absorb your tax free allowance, I would allow about 25% of your profit as a "tax to pay" figure -in simple terms - and put it to one side.

As a note, you are oblidged by law to register as self employed within 3 months of commencing trading.

Grumpy

webby · 28-12-2007

Don't put your Mrs.down as employed.Put her down as a partner.Your accountant should then work the tax due proportionately between you.That doesn't mean equal tax but it will work out cheaper overall.My accountants bill is about £450 per annum.