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Doorwork - taxable expenses

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wiffers
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2006/07/11 12:45:39 (permalink)

Doorwork - taxable expenses

For various reasons, a lot of doorman in our securty company have the option to go self employed. As I am self employeed anyway I've decided to do this.

This means I get to claim tax back on expenses:

* trouser, shoes, shirts
* ear pieces / comms
* office sundries (pens, paper)
* mobile / landline calls to security company
* mileage to and from venues or share of motor expenses pro-rata

etc etc

Just wondering if anyone (esp those who run door companies) can think of other legitimate taxable expenses that I can claim.

Am I right in thinking it would be pushing it trying to run suppliments (namely whey and creatine) through, afterall, I do them to get big and strong, handy for the door, so it is a tool to do my job more effectively ?!??

Cheers

Raw dead Lift 320kg
Raw bench 171kg
Shirted bench 200kg
Amateur cage fighter @ 95 - 105kg
:o)
#1

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    RE: Doorwork - taxable expenses 2006/07/11 14:46:51 (permalink)
    Naw you won't get away with the Whey or Creatine tbh.
    #2
    James
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    RE: Doorwork - taxable expenses 2006/07/11 14:47:34 (permalink)
    He could get away with a meal if he has to tavel a bit to work
    #3
    wiffers
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    RE: Doorwork - taxable expenses 2006/07/11 14:50:28 (permalink)
    Didn't think subsistence was a taxable expense?

    (besides only a few mins down the road)

    Thought whey would be pushing it. But it isn't food, it's a suppliment, that was my logic ??!

    Any other expenses you can think of

    cheers guys

    Raw dead Lift 320kg
    Raw bench 171kg
    Shirted bench 200kg
    Amateur cage fighter @ 95 - 105kg
    :o)
    #4
    RockyV
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    RE: Doorwork - taxable expenses 2006/07/11 14:51:13 (permalink)
    Hi Whiffy.

    I am afraid I am not a security company but I am a Chartered Accountant so I hope you don’t mind me having a go at answering your question.

    If you can be self-employed rather than an employee in any job, you should do it, as the Inland Revenue are more relaxed about allowable expenditure when trading as a sole trader.

    Expenses by the definition of the revenue need to be "wholly and exclusively" The legislation disallows any expenditure not incurred wholly and exclusively for the purposes of the trade, profession or vocation. This means that the rule is only satisfied if the taxpayer’s sole purpose for incurring the expense is for the purposes of their trade, profession or vocation. If you identify a non-trade purpose then the expenditure is not allowable.

    However, if there is an incidental benefit, where a taxpayer incurs an expense wholly and exclusively for the purposes of their trade, profession or vocation an incidental benefit may arise. Such an incidental benefit does not, of itself, mean that the expenditure is disallowed.

    Supplements - In your case, if you were absolutely adamant to the revenue that you only take your supplements to increase your size and strength so that you can work as a doorman then I think this is a good case for the expenditure being allowable.

    Clothing - Unfortunately is not allowable unless it is protective clothing or it is branded. This is due to the "dual purpose" rule, where by we need to wear clothes whether we are working or not (e.g. Barristers clothing (and wigs) are not allowable!) therefore your clothing worn when working on the door is likely not to be allowable. It would have a stronger case for being allowable however if it had the pub / club name on the clothing or “Security” on it because then you could argue that the clothing can only be used in conjunction with your job.

    Car expenses - These are only allowable if you are a sole trader / own company and not if you are an employee. The best way to claim motor expenses is to claim the Inland Revenues standard mileage allowance rate of 40p per mile (on the first 10,000 miles).

    Earpieces - Are allowable as they are wholly and exclusively for the use of conducting your business.

    Phone call costs - Are allowable as well as line rental costs if you are self-employed / company owner.

    Office and stationery - Are also allowable. The Inland Revenue allow a fixed amount of say £10 per week as office expenses if you use your home, paper, pens etc to organise your business.

    I always say to my clients “If you think you have a good case for claiming it, Claim it”, the worst that can happen is you get investigated and they prove otherwise, in which case if it is a legitimate mistake on your part you only have to pay the difference in tax. You only get in trouble with the Inland Revenue if you deliberately try and avoid paying tax. I know as I have acted as agent for clients who have had tax inspections and an open, honest approach is always more effective.

    Keeping good books and records also keeps the Inland Revenue happy, if you have good books and records it shows them that you are not ignoring tax and accounting issues and again the revenue will be far more relaxed on you.

    Tax avoidance is illegal as opposed to tax minimisation, which is perfectly ok.

    Remember – You must register as self employed with the Inland Revenue within 3 months or commencing self-employment or they can fine you £100!

    There may also be even bigger advantages to trading as a company rather than self-employed (not too difficult to set up) and pay yourself dividends. This means you only get taxed on the money you draw out of the business as opposed to being taxed on all your profits at a beneficial tax rate.

    Hope this helps.

    Steve







    15 stone
    5ft 10in
    16-18% BF
    Goals: Increase strength and size will keeping BF under control.
    #5
    wiffers
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    RE: Doorwork - taxable expenses 2006/07/11 15:01:16 (permalink)
    nice one cheers Steve

    So if I put suppliments on, and did get audited and couldn't justify them, they'd just make me pay the difference, is that correct?

    That's all good - nice one!

    Raw dead Lift 320kg
    Raw bench 171kg
    Shirted bench 200kg
    Amateur cage fighter @ 95 - 105kg
    :o)
    #6
    RockyV
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    RE: Doorwork - taxable expenses 2006/07/11 15:11:07 (permalink)
    That's right wiffers. For example, one client (a construction company) bought a few bits (paint etc) for his own personal home and claimed them through the business. The Inland Revenue asked the person to pay up the tax on the expenese and they were satisfied.

    Another time a client had put a lot of entertaining expenditure in his books and when the revenue investigated him the reciepts were for things like restaurant bills around the corner from his home etc. The Inland Revenue wrote a letter and asked if they could give more details. We said that the bills were in relation to customer entertaining and they closed the case.

    So my point is "nothing terrible will happen if you claim a bit of whey protein and creatine on your tax return". But if the revenue did ever catch up with you (and the chances are they won't) then you may have to pay the tax on them at a later date.


    15 stone
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    16-18% BF
    Goals: Increase strength and size will keeping BF under control.
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    ArmaLite
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    RE: Doorwork - taxable expenses 2006/07/11 15:28:17 (permalink)
    how do you go about doing this? where do you get forms from etc and more info?

    Thanks
    #8
    RockyV
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    RE: Doorwork - taxable expenses 2006/07/11 15:40:26 (permalink)
    The following link gives you the phone number of Inland Revenue, details of N.I. payments and details such as how to determine what your employment status is and when the returns need to be completed:
    http://www.stevenbroomfield.com/self.htm

    You should always consider incorporation even for door work. More info here:
    http://www.stevenbroomfield.com/incorporation.htm

    And reasons for keeping good books and records:
    http://www.stevenbroomfield.com/bookkeeping.htm

    I hope this is useful.

    15 stone
    5ft 10in
    16-18% BF
    Goals: Increase strength and size will keeping BF under control.
    #9
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