Reply to: Previous years expenses?

[northernladuk]

Thanks. So in summary his tax relief is against the dividend tax of 7.5%.

Obviously if he'd had done it properly it would of been relief on the company against corporation tax which would of been against 19%!!!

Which would have been a lot more than the cost of a decent accountant......

[Lance]

Thanks. So in summary his tax relief is against the dividend tax of 7.5%.

Obviously if he'd had done it properly it would of been relief on the company against corporation tax which would of been against 19%!!!

his tax relief is against his income tax. So yes if he's drawing small salary and dividends.

[325i]

Yes.
It works if you’ve done business mileage but not been recompensed.
You get tax relief on 45p per mile for 10,000 miles and 22p per mile after that.

Thanks. So in summary his tax relief is against the dividend tax of 7.5%.

Obviously if he'd had done it properly it would of been relief on the company against corporation tax which would of been against 19%!!!

[Lance]

I am not sure but presume so. That's something for him.



Thanks, understand. But by putting it on the SA, it will reduce income tax?

Yes.
It works if you’ve done business mileage but not been recompensed.
You get tax relief on 45p per mile for 10,000 miles and 22p per mile after that.

[Old Greg]

I am not sure but presume so. That's something for him.



Thanks, understand. But by putting it on the SA, it will reduce income tax?

Google Tax Relief etc. etc.

[325i]

So, I have a question: does your "friend" have an accurate mileage log to support such a claim; one that would withstand scrutiny from HMRC?

Ok, so two questions: does the two year rule not apply here, and why not?

I am not sure but presume so. That's something for him.

SA is simpler but will not reduce CT.

Thanks, understand. But by putting it on the SA, it will reduce income tax?

[Old Greg]

Thank you for the reply.

Obviously I have always done it against my company to reduce corporation tax.

Therefore should he not be doing it against his company? What's the difference if he does it on his SA?

SA is simpler but will not reduce CT.

[wattaj]

So, I have a question: does your "friend" have an accurate mileage log to support such a claim; one that would withstand scrutiny from HMRC?

Ok, so two questions: does the two year rule not apply here, and why not?

[325i]

There are two elements to the tax relief here. Personal and company.
For personal just ring HMRC and ask them if you can do several years in one SA.
For company ask an accountant.

In addition, if for the same client, then the 24 month rule may well apply. Read the links to the right on those.

Thank you for the reply.

Obviously I have always done it against my company to reduce corporation tax.

Therefore should he not be doing it against his company? What's the difference if he does it on his SA?

[Lance]

There are two elements to the tax relief here. Personal and company.
For personal just ring HMRC and ask them if you can do several years in one SA.
For company ask an accountant.

In addition, if for the same client, then the 24 month rule may well apply. Read the links to the right on those.

[Old Greg]

Thanks. Why do you probably? Is there a risk?

So is by using P87 or a different process?

Probably because I'm not an accountant.

Ask an accountant or Google it and try to work it out.

[325i]

Probably, yes.

Thanks. Why do you probably? Is there a risk?

So is by using P87 or a different process?

[Old Greg]

Yes this exactly. Basically tax relief for the previous years. Do you think he can?

Probably, yes.

[325i]

Any further comments on this to whether he can claim back precious tax relief?

[Scruff]

A man who has himself for a client, is the biggest fool...

Engage an Accountant FFS!