Reply to: Clever turnover/expense maxmising tips?

[Ruprect]

Hypothetical question for you then

You do buy a projector for your "demos".
You have an investigation 3 years and 1 day from the date of purchase
Given that depreciation writes off electronic items after 3 years (I think) - would this item even feature in the audit/investigation?

[Jog On]

I use the spare room in my flat as an office and will claim a portion of rent/bills/council tax for it as well as broadband.

I do internet marketing in my spare time though and really do use the room genuinely for this purpose - I'm sure my ISP logs could back that up as well.

I bought some books on business building and investing lately and will expense those - along with any other training materials.

[cojak]

Maybe, unlike 99.99% of contractors, you really do demos.

That's the great thing about being a trainer on the side!

[Denny]

I'd only ever put through business equipment that can convincingly only be used for business purposes through the books. To do otherwise is asking for trouble.

Rule of thumb - if you have a dedicated office and a TV in it for viewing corporate material, which is an essential component of your work, but have other TVs for personal use, elsewhere in the house then that's probably OK. If you only have one TV or more in rooms that are not dedicated to business use which can only be used for both bus and leisure, then I wouldn't risk it.

[MonkeyWorld]

Maybe, unlike 99.99% of contractors, you really do demos.

A book I read on tax investigations commented how things that seem OK at the time suddenly look very different when you have a tax inspector sitting across the table from you, looking you in the eye, and (in this case) asking you to estimate how many presentations you have given (truthful answer probably zero) and how often you have used projector for personal reasons (truthful answer probably once a week?)

You're taking the fun out of it for him!

[IR35 Avoider]

I find a portable projector (for all those business demos) produces a rather loverly big image + 100% expensable

Maybe, unlike 99.99% of contractors, you really do demos.

A book I read on tax investigations commented how things that seem OK at the time suddenly look very different when you have a tax inspector sitting across the table from you, looking you in the eye, and (in this case) asking you to estimate how many presentations you have given (truthful answer probably zero) and how often you have used projector for personal reasons (truthful answer probably once a week?)

[srennocks]

TV is ok as a computer monitor but have to claim it as a BIK however main expense comes out of the company.

I need it to look at large drawings which would be too small to view on normal pc monitor, hence the need for a 42" plasma.

I find a portable projector (for all those business demos) produces a rather loverly big image + 100% expensable

[Shieldsy]

TV is ok as a computer monitor but have to claim it as a BIK however main expense comes out of the company.

I need it to look at large drawings which would be too small to view on normal pc monitor, hence the need for a 42" plasma.

[srennocks]

I don't think thats correct. My accountant has said you can estimate how much of your time on the internet is work related and the claim that percentage - a bit like claiming use of home as an office, number of rooms, heating, lighting etc.

Broadband is an iffy one...personally I have a dedicated company phone line (an 0870 number - just happens I talk real slowly when agencies call me! ) and the broadband is on that line - so my accountant is happy that it's legit and just claim for the lot.

[BOBJ]

you can put broadband through the company aswell?

I don't think thats correct. My accountant has said you can estimate how much of your time on the internet is work related and the claim that percentage - a bit like claiming use of home as an office, number of rooms, heating, lighting etc.

[srennocks]

I have heard of occassions of contractors putting home cinema / hifi equipment through their company, PS2's/Xboxs, and other slightly dubious stuff all under the dubious suggestion that it's for R&D purposes! If you're accountant is really doing his job he'd block these sorts of things on the grounds of the risk/explaining you'd need to do if the revenue ever questioned them.

Just my two pennies worth, although I did make a few dubious expense claims in my first year of contracting!

[srennocks]

Why would I be on the flat rate scheme if I expense shedloads?

Not suggesting you expense shedloads - obviously if it starts to rack up to a really sizeable chunk a year then may be better off coming off flat rate VAT.

However for stuff you genuinely want and can expense for, then better off doing so rather than paying out of own pocket after tax.

[PAG]

you can put broadband through the company aswell?

I do. As I send all my invoices via mail and also host web site.

[Maxamus]

you can put broadband through the company aswell?

[ratewhore]

I still find there are far too many contractors using fee charging bank accounts, not on flat rate VAT scheme, and no nothing about xmas/social party expense claims.

Why would I be on the flat rate scheme if I expense shedloads?