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Author Topic: Tax - accountants, deductible expenses, general information  (Read 19380 times)

BevOsteen

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Tax - accountants, deductible expenses, general information
« on: 25 October 2012, 02:30:03 pm »
Yes you need a "uniform" for working & tools of your trade. Your accountant can sort this all out for you. I can even put my new washer through because it's used to wash towels, bedding etc.

A percentage of your bills etc can be put through.

xx

Yes it is tax deductable my accountant also allows me to put lipstick receipts as I use YSL red lipstick which is ?25 and really helps.

Funkymonkey

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Re: Tax - accountants, deductible expenses, general information
« Reply #1 on: 05 March 2020, 06:07:25 pm »
Might sound like a stupid question but say your income is 20k and expenses are 5k = £15k so you’re only liable for tax on that. Say for a mortgage, could you say your income is £20k or would it be £15k? I want to buy my ex out of the house so need to up my income as much as possible. Obviously nobody wants to pay more tax than they have to but i would be willing to if it meant I would be able to get the mortgage on my own. (Ie not declare any expenses and pay tax on the whole lot) Anyone got any idea?

MsRedhead

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Re: Tax - accountants, deductible expenses, general information
« Reply #2 on: 05 March 2020, 06:11:34 pm »
it'd be £15k

Funkymonkey

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Re: Tax - accountants, deductible expenses, general information
« Reply #3 on: 05 March 2020, 06:22:01 pm »
Thanks redhead, I thought it would be just wanted to double check.

LotusFlower

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Re: Tax - accountants, deductible expenses, general information
« Reply #4 on: 05 March 2020, 08:31:50 pm »
Pretty sure it's not 15k. The tax paid on expenditure (20% of 5k, say) is deducted then you pay tax on the remainder.

Your tax free allowance is 10k (just to keep it simple). Your taxable income after expenditure will be 9k. 20% of 9k will be your tax bill.

Your end of year earnings for mortgage purposes will be 15k: income - expenses.

My accountant explained it all to me as I was quite surprises at my tax bill this tax year, so now I claim for EVERYTHING I can just to try lower it. I may be wrong but it definitely wasnt as straight forward as deducting the expenditure and paying tax on the remainder.

Kay

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Re: Tax - accountants, deductible expenses, general information
« Reply #5 on: 05 March 2020, 08:53:58 pm »
I'm also doubtful it would be 15K. Your income is your income - you can't necessarily just deduct all your expenses; that would be like denying 25 percent of your earnings in your example.
"There is no sin except stupidity" - Oscar Wilde

MsRedhead

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Re: Tax - accountants, deductible expenses, general information
« Reply #6 on: 06 March 2020, 02:27:16 am »
Pretty sure it's not 15k. The tax paid on expenditure (20% of 5k, say) is deducted then you pay tax on the remainder.

Your tax free allowance is 10k (just to keep it simple). Your taxable income after expenditure will be 9k. 20% of 9k will be your tax bill.

Your end of year earnings for mortgage purposes will be 15k: income - expenses.

My accountant explained it all to me as I was quite surprises at my tax bill this tax year, so now I claim for EVERYTHING I can just to try lower it. I may be wrong but it definitely wasnt as straight forward as deducting the expenditure and paying tax on the remainder.

I don't follow, what isn't £15k? Your taxable income  is simply your gross income minus expenses. Of course you get the same tax free allowances as all other workers.

MsRedhead

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Re: Tax - accountants, deductible expenses, general information
« Reply #7 on: 06 March 2020, 02:28:13 am »
I'm also doubtful it would be 15K. Your income is your income - you can't necessarily just deduct all your expenses; that would be like denying 25 percent of your earnings in your example.

Your income for mortgage/referencing etc purposes is your gross income minus expenses. If you aren't making profit, then you don't have an income!

LotusFlower

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Re: Tax - accountants, deductible expenses, general information
« Reply #8 on: 06 March 2020, 10:12:11 pm »
I don't follow, what isn't £15k? Your taxable income  is simply your gross income minus expenses. Of course you get the same tax free allowances as all other workers.

Your taxable earnings are not 15k.

neutralC

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Re: Tax - accountants, deductible expenses, general information
« Reply #9 on: 06 March 2020, 10:29:55 pm »
When I was renting, they didn't care how much I earned. They only cared about my income after expenses.

And I couldn't rent place which I was eligible to rent for what they asked (on my salary). They only look at income after expenses. Which was very weird for me. And I was short in this case to rent the place, so I had to pay 6 months upfront with these rules.
« Last Edit: 08 March 2020, 01:11:52 pm by neutralC »

MsRedhead

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Re: Tax - accountants, deductible expenses, general information
« Reply #10 on: 07 March 2020, 10:39:13 pm »
Your taxable earnings are not 15k.

They are. Taxable earnings is a phrase that doesn't exclude your personal allowance etc (as people's personal allowances differ!)

LotusFlower

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Re: Tax - accountants, deductible expenses, general information
« Reply #11 on: 10 March 2020, 11:55:41 pm »
Right, but that wasnt even the point I was making. It was in relation to expenses, how they are deducted and what portion of tax is left to pay on expenses of £5,000.

Maybe I shouldn't quit my day job and become an accountant  ::) ::)

V24

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Re: Tax - accountants, deductible expenses, general information
« Reply #12 on: 11 March 2020, 03:34:55 pm »
Right, but that wasnt even the point I was making. It was in relation to expenses, how they are deducted and what portion of tax is left to pay on expenses of £5,000.

Maybe I shouldn't quit my day job and become an accountant  ::) ::)

You don't pay tax on expenses.  Your taxable income is the £15k without a doubt.  Taxable income is income - expenses.  If they ask for turnover that is a different story.

Honeyxx

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Re: Tax - accountants, deductible expenses, general information
« Reply #13 on: 14 March 2020, 12:00:58 am »
Can someone pm me an
accountant in London or if outside London - do video calls please. Budget is like up to 400. Thanks xxx