Expenses

[KamikzMX]

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I'm self employed, have been doing freelance web development and building up some affiliate sites, I've got to the point where I've decided I dislike freelance dev work more than I dislike being employed and my affiliate sites aren't bringing in enough £££ by themselves to rely on, so I'm considering getting a job.

Now I was wondering, as I'll still be self employed as I have some affiliate income, could I claim my travel to the job as an expense, and if not then how do I know what miles I can claim for, as obviously any driving I do during the day would be classed as while I'm working, but what if I popped out to buy a printer cartridge on my lunch break, can I claim those miles? Do I need to prove it was related to my business rather than my job?

I presume I can still claim for everything else that I do at the moment, like hosting, computer equipment etc?

I would ask my accountant but she's not around for a while, and I know theres some knowledgable people on here

Cheers

[KamikzMX]

And another question that just popped into my head, would my employer pay me like when I was classed as an employee, ie take out the Tax, NI and Student Loan or would I just get paid the full whack and have to account for it myself at the end of the year?

Cheers

[cyates]

...I know theres some knowledgable people on here

really .. where ?

lol

[fizzbird]

And another question that just popped into my head, would my employer pay me like when I was classed as an employee, ie take out the Tax, NI and Student Loan or would I just get paid the full whack and have to account for it myself at the end of the year?

Cheers

No, you'd be paid on paye just as anyone else. Can cause confusion regarding tax codes though - I find it's easier just to pay tax on 'week 1' (what used to be called emergency tax) for my 'employed' income and get a refund at the end of the year.

You can claim an allowance for any expenses involved in earning your 'self-employed' income, such as mileage, etc.
You can also claim allowances for any expenses you incur doing your job that are not reimbursed. Depends what you do for a living (I am a surveyor and sometimes get mileage paid and sometimes don't) - it can be a pain keeping track but worthwhile when you get a refund each april.
But you must keep accurate records and be able to answer any query about this (they can be very petty).

Make sure your tax office know you have another source of income and file a tex return each april (do it online - much more efficient and any refunds get paid almost instantly).

[hrbs]

And another question that just popped into my head, would my employer pay me like when I was classed as an employee, ie take out the Tax, NI and Student Loan

Hi

Yes, as an employee your employer would tax you under PAYE using the tax code issued by its tax office. When you start your job you will have to sign form p46 stating that it is your only employment (unless you have a p45 from this tax year?) as self employment does not count for form p46. You will pay, as fizzbird rightly says, tax using the month/week 1 basis and tax code 522L until an update tax code is issued hy HMRC.

Your employer will give you a form p60 in April 2008 and a p11d in June (if they provide any benefits in kind). You will need to include these figures in your 2007/2008 tax return. Any tax paid will be offset against your tax liability for that tax year.

Depending upon how much you will be earning you can apply for NIC deferrment.

Expenses claimable ... must be wholly and necessarily for your self-employed business. Home/office based affiliate marketing has minimal travel and the Tax Inspector may pick up on an increase as abnormal if your income decreases. Also your accountant would query it and should advise against misclaiming expenses.

A brief list on what you can claim is at tips.hrbs.biz Tax deductible business expenses .

Hope this helps

Regards

Keith
Fixed Fee Accountants and Small Business Specialists - High Royd Business Services Limited
Small business and affiliate marketing specialists

[KamikzMX]

Thanks Keith, exactly what I needed to know, and all sounds straightforward.

I didn't think I'd get away with claiming those miles, but thought I'd ask just incase.

I may well be in touch with you next year as my accountant is a nightmare to get hold of, and you've obviously got all the know how for this sort of business.

[hrbs]

Thanks Keith, exactly what I needed to know, and all sounds straightforward.

I didn't think I'd get away with claiming those miles, but thought I'd ask just incase.

I may well be in touch with you next year as my accountant is a nightmare to get hold of, and you've obviously got all the know how for this sort of business.

Hi

Glad to help.


Regards

Keith
Fixed Fee Accountants and Small Business Specialists - High Royd Business Services Limited
Small business and affiliate marketing specialists