Originally posted by WordIsBond
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Previously on "Opinions on using coffee shop as a casual workspace."
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Originally posted by TheCyclingProgrammer View PostHow did none of us think of this workaround when they introduced the low cost trader rules?
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Originally posted by password View PostRegarding commentary about the amounts being miniscule. I think it is a good practice to include even the simplest of business expenses. I say this because when I go shopping online for example and go click happy and add a bunch of items to my cart thinking.. Oh that's only £2 pounds and so forth. By the time I click checkout the overall cart value is quite high.
If someone has the power to make my life hell, I don't want to trigger them. I don't mind at all having them say, 'Man, this guy even expenses envelopes' -- envelopes hardly cost anything but they are legit business expenses. But I don't want them saying, 'This chancer tried to put his morning coffee down at his local Starbucks through his company. Where else is he cheating?'
It's a risk/reward question. I think the risk here is significant and the reward small. I wouldn't do it. Sounds like your risk tolerance is higher than mine.
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Originally posted by WordIsBond View PostIf you buy enough coffee you won't have to be a low cost trader and can make profit on flat rate VAT.
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Originally posted by pr1 View Postplus the VAT
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Originally posted by Alchemy Accountancy View PostSorry to be pedantic here...but what you actually need to do is divide it out by 1 minus the rate of tax (expressed as a decimal) - I'm sure there will be a proper mathematical term for this..
The proper term (non-mathematical) is 'lazy' (that's me, for not making sure I had it precisely right) and 'nerd' (both of us) and 'clueless but accurate accountant' (that's you, for focusing on the numbers and ignoring the huge issue that he's not going to be doing admin in a coffee shop 230 days a year ).
But anyway, thanks for correcting me, I deserved it for being both pedantic and wrong.
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Originally posted by WTFH View PostAnd if the coffee shop kicks you out after 1 hour when all you bought was a single coffee, while you're in the middle of an important conference call?
...or they refuse to serve you because you take up a table for 4 people for 6 hours when they are busy?
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Originally posted by WTFH View PostAnd if the coffee shop kicks you out after 1 hour when all you bought was a single coffee, while you're in the middle of an important conference call?
...or they refuse to serve you because you take up a table for 4 people for 6 hours when they are busy?
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Originally posted by Lance View PostWetherspoons. All day coffee/tea free refills.
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And if the coffee shop kicks you out after 1 hour when all you bought was a single coffee, while you're in the middle of an important conference call?
...or they refuse to serve you because you take up a table for 4 people for 6 hours when they are busy?
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Find a coffee shop that will give you a receipt for hot desk space for a tenner and throw in a tenner's worth of drinks and food.
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Originally posted by Freewill View Post£10 / day = £2,300 / year
paying this out of pocket would cost 2300 x 1.2 x 1.325 = £3,657
which makes a saving of £1,357 / yearOriginally posted by WordIsBond View PostYou should also have used 1.19, not 1.2. And you should have asked OP if he is higher rate or not, if not, you should have used 1.075 instead of 1.325.
So the 2300 is wrong, the 1.2 is wrong, and the 1.325 might be wrong. Other than that your figures are fine.
So to get the dividend declaration required to get an after tax amount of £2,300 (and assuming a higher rate payer @ 32.5%) it is:
2,300 / 0.675 = 3,407.40
Then to get the amount of income required prior to corporation tax (19% is indeed the right rate), it is then:
3,407.40 / 0.81 = 4,206.67
So the actual saving (assuming a higher rate tax payer) would be £1,906.67
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Originally posted by LondonManc View PostRent a cheap office space, get a Nespresso machine contract. Surely it looks more like a business space then?
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