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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4984
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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Oh and one other thing, these are my expenses, are they all

Customer Question

Oh and one other thing, these are my expenses, are they all legit?
Phone bill: £240 (£20 a month x 12)
PR: £1600
Halloween services for event: £400
Computer: £1300
Rent: £6000 (£550 a month x 12)
Bills at home: £1800 (£150 a month x 12)
Camera: £340
New York flight: £417
Paris hotel: £200
= £12297
Thanks!
Submitted: 2 years ago.
Category: Tax
Expert:  taxadvisor.uk replied 2 years ago.
Hello and welcome to the site. Thank you for your question.

Please clarify what rent and bills at home are.

I presume airfares and hotel are business related and therefor will be allowable.
As far as computer and camera id concerned, these would be regarded as capital and you would cliam capital allowance for them.. you can claim 100% annual investment allowance

More information on this can be found here

http://www.hmrc.gov.uk/manuals/camanual/ca23081.htm


I hope this is helpful and answers your question.

If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.

Customer: replied 2 years ago.

Hi there,

Thanks for you reply.

My business is registered to my home, where I work and I visit my clients. So would my rent and bills be tax deductible?

What does 100% annual investment allowance mean?

Thank you.

Expert:  taxadvisor.uk replied 2 years ago.
Sarah, thanks for your reply.

There are guidelines from HMRC on how you calculate business use charge relating to bills when you have a home office.

You will not be able to claim 100% of the bills unless it is all business.

More information can be found here
http://www.hmrc.gov.uk/manuals/bimmanual/bim47825.htm

Certain expenditure of capital nature, you claim capital allowance on it and not expense it to revenue expenses. Your camera and computer would qualify for 100% allowance in the first year. You use this to reduce your profits for tax purposes. I sent you a link in earlier posting explaining capital allowance.

I hope this is helpful.