How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask bigduckontax Your Own Question
bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3825
Experience:  FCCA FCMA CGMA ACIS
75394688
Type Your Tax Question Here...
bigduckontax is online now

Hi 1. I am working part time and hire a car for when i have

Customer Question

Hi
1. I am working part time and hire a car for when i have work as i need to carry large amounts of equipment, all the mileage is work related but have been told that i can not claim all the costs (petrol and hire cost) is this true?
2. Last year i invested £3000 in cheap friend-ship bands as i hoped to sell these and roll the money over so as to be able to purchase a piece of kit worth £8000, this didnt happen as Ebay changed their rules for selling items under £1. I have tried selling cheap them in bulk to get my money back (£500) but still have the items. How can i show this in my books?
I have a few other questions but will save for later.
My business is working as a Decontamination Engineer which involves travelling about 150-200 miles daily. I work 3/4 weeks and then have 3/4 weeks off (due to ill health and working long hours during work time and a bit of old age in there too!)
just checking to see the cost before any more questions!
Thanks, Bill
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.
Hello Bill, I'm Keith and happy to help you with your question.
Car Hire, well yes and no, you can claim 45p a mile which is designed to cover all running and capital [in this case hire] costs. That is one solution, a rough and ready twist of the spoon to stop the treacle running off so to speak.
Here is the 'Which' guidance on the subject:
'Self-employed: expenses you can claim
Travel and accommodation
Running costs of a car or other vehicle, including petrol, car tax, insurance, repairs and servicing.
If you also use the car privately, you can claim only a proportion
This is usually the ratio of your business mileage to your total mileage
It's worth keeping a log of business mileage for a representative period as well as all bills.
Travel and accommodation on business trips and between different places of work can be claimed as well.'
I think you have been slightly mislead on the advice you have received.
Friendship bands, you take the left overs into Stock at their original cost reducing the expenditure in the accounts accordingly. The purist will say these stocks should be entered into your balance sheet at the lesser of cost or net realisable value. If the expenditure is small don't worry about stocks at all, just put the cost as a cost of sale in the current year. In the great scheme of things it doesn't really affect the price of cheese, as my old boss was wont to remark.
I do hope I have cleared the air for you to be able to complete your annual accounts.
Customer: replied 2 years ago.

Hi

Thank you for your reply.

More questions later

cheers

Bill

Expert:  bigduckontax replied 2 years ago.
Delighted to have been of assistance.
Please be so kind as to rate me before you leave the Just Answer site.
bigduckontax and other Tax Specialists are ready to help you
Expert:  bigduckontax replied 2 years ago.
Thank you for your support.

Related Tax Questions