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Sole trader expenses

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    Sole trader expenses

    Trying to plan ahead. SWMBO is started self employed. She has one employee (me unpaid part time).

    Trying to navigate the expenses minefield since it is a bit different.

    Typical pattern is that she will make multiple calls providing domestic care services to clients. She will generally have first about 9am last about 7pm and some breaks during the day.

    I have the following tentative list.

    - mileage at amaps rates (is this one of these rare cases where apportionment might work. But this means capital allowances not simplified)
    - interest on the car loan (in my name not hers) apportioned according to private/business use looks like it might be chargeable in a sole trader environment
    - car insurance. The additonal cost for business use is identifiable and i believe claimable
    - parking permit (medical) and casual
    - liability insurance
    - home office 10/month (25-50 hour rate)
    - mobile (full cost of contract 30/month)
    - social functions to 300/year. I am the employee she is my +1 (too thin ice maybe?)

    - Then the sticky subject of subsistence. Breakfast once or twice a week when an early start is required. Ditto dinner. How much 5/breakfast 15/dinner seems to fit guidelines. (Receipts needed since scale rates do not appear to apply).

    But.... the above "out of pattern" subsistence would appear to be ok always. However is there a reasonable argument to make that the work pattern is itinerant and that all subsistance is allowable? (cf a commercial traveller).

    Any help gratefully reveived. Just trying to ensure i claim something approaching everything. Not particularly wanting to rip the p.

    There is also the question of capital equipment. There is a recently acquired mac. Approx 1800. Depreciate and charge to capital allowances or a one off claim ? Will not be vat registered.
    Last edited by ASB; 1 January 2018, 16:42.

    #2
    Originally posted by ASB View Post
    - mileage at amaps rates (is this one of these rare cases where apportionment might work. But this means capital allowances not simplified)
    - car insurance. The additonal cost for business use is identifiable and i believe claimable
    Sorry but this is double bubble imho... mileage at HMRC rates or car related expenditure, but not both.
    Last edited by SeanT; 1 January 2018, 17:40.

    Comment


      #3
      There is a tool here that can be used to determine whether she would be better off on the simplified expenses of actual ones.

      AIUI, you can't mix and match, it's all or nothing.
      Last edited by TheFaQQer; 1 January 2018, 17:39.
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      Comment


        #4
        I will check out that tool. Thanks.

        I do also appreciate that claiming amaps rates and lian intetest does feel counter intuitive.

        I was only basing that possibility on an article i read - and it felt questionable at the time. See section 4 here. What Motor Expenses Can You Claim If You're Self Employed? - Accounts Resource Blog | Accounts Resource Blog

        The tool suggests exact costs may be beneficial. I suppose I can work it all out at the end of year and then decide since there has been no claim either way (though i have to stick with whatever method i choose).

        Comment


          #5
          Originally posted by ASB View Post
          I do also appreciate that claiming amaps rates and lian intetest does feel counter intuitive.
          The loan interest is claimable, as a bit of an anomaly - something to do with it still being your car and not the business'. Other car expenses aren't though afaik. See https://www.freeagent.com/guides/expenses/mileage/

          Comment


            #6
            Re the subsistence,

            https://www.whitefieldtax.co.uk/lunc...self-employed/

            (I was googling the Hansard link, and found my own post which I had forgotten I had written)

            For the computer equipment, depreciation is really irrelevant. Issue is to claim Annual Investment Allowance and take the expense in one go, or Writing Down Allowances on reducing balance at 18%. Largely be an issue of managing income/losses/projected tax rates - do you do better by claiming now or deferring.

            Brilliant research on the allowability of loan interest along side AMPs. 31 years, and I hadn’t come across this.

            Comment


              #7
              Thank you Jessica. This is turning a bit into the curates egg.

              There are elements of both habitual and itinerant into the customer visits. There are perhaps 10 clients overall, some drop off and new ones are added as their needs change.

              She will see some daily, some multiple times in a day and some less frequently. Usually "booked up"" for a few weeks in advance.

              This makes me feel that all the mileage twixt office at home and clients is therefore business mileage. As such i think subsistence should also be OK. But I think I will encourage her to be only claiming the unusual ones. Early start and laye finishes.

              Comment

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