Another tax question.

[xKatieBabyx]

Mine is quite simple and straightforward, just money into my bank as earnings, and business costs as expenses. I am NOT up on accounts at all and other than those two figures input onto the self assessment website i haven't got a clue. My tax bills so far though have been ridiculous. With only 1k - 3k per year expenses, i end up paying a stupid amount.

[kinkydirtybitch]

Sounds like you are not claiming enough expenses! A good accountant is tax deductible & worth their weight in gold.

[xKatieBabyx]

I spoke to an accountant today in light of all the VAT stuff and going forward will be using him to handle my affairs. From what we discussed it does sound as though I am claiming for pretty much everything i can. It includes all things i've bought solely for the business such as computers, webcams, software subscriptions, courses, training, professional advice, clothing, sex toys, website fees, advertising and marketing, my business phone, business broadband, and a conservative portion of household expenses.

[sarahxxx]

To be fair, accountants only come into their own when you have reached a certain level of taxable income and even then it can depend on your circumstances.

Beware the "clever" accountant that suggests you claim expenses on your own home, this can lead to paying CGT on the sale of the property if it is not done right.

An accountant may baffle you with savings that in the long run do you more harm.

Sarah x x x

[xKatieBabyx]

yeah, that's why i'm really conservative with household bills. i can't remember the exact amount, think it's £3.50 a week or something as a portion of bills associated with purely business space in my home.

[beauvoir]

^ Really?

I have a room dedicated to camming, and I worked out the area of the room against the area of my flat. It's 20% of the floor space, so 20% of all my bills - insurance, heating, electric, etc (and 60% of my internet bills) - are deductible.

[Sexxy-Claudia]

Interesting . I take 15 % of the space - bills, heating , electric , insurance etc and 40 % for internet and phone .

[beauvoir]

My accountant suggested 60% which is how I came up with that figure. I was using 20% before then.