What EXACTLY can i claim for as a sole trader

S

shanemotyer

Guest
Heya All

Im a sole trader, working as a service engineer, dealling with cctv systems, intruder alarms, access control, fire alarms and automatic gates.

have tryed to find out from my accountant what i can claim for but never seem to get an answer from him.

if anyone could tell me exactly what i can claim it would be great.

thanks

shane
 
Well, you can claim for all legimitate expenses.

If you're VAT registered then you can claim all VAT back on legitimate expenses, with VAT receipts, or normal receipts if no VAT receipts available (sometimes on small purchases in Tesco, or mobile phone prepay credit for example)...you must also charge VAT if registered.

Any legimitate expense can include a portion of household expenses if you work from home, like heat,light etc.. this may have a Capital Gains implicition when you sell your house, it may also have insurance issues, .. if you rent it may be against your lease to work from home.

VAT can't be claimed back on petrol, even if legimitate, except possibly when used in a generator, or garden tools for gardeners... not sure, but can't be claimed back for use in a car.


There are no mileage allowances or anything like that. Food, like lunches, is not allowable, as you eat to live, not for your job. The exception may be when working away from your usual base, like staying overnight in a B&B when doing a job in Waterford, and paying for meals while staying down...


Your phone bill would normally all be charged to your trade.. both the VAT reclaimed, and the ex-VAT entered as an expense, and taken off your profit,...

Your car, and all associated expenses could likely be completely used as legimitate expenses... you should probably allow a portion of private use, say 20% or 40%, but this probably isn't necessary, especially if you have a second car for private use, or you drive a van with commercial tax and insurance..

Some big expenses, like new cars, or big machines, are not expenses.. but you claim VAT back when paid, and the ex VAT part would normally be completely taken off your profit over five to eight years say, as depreciation each year... say 20% per year over five years.



Business cards and all that are allowable... and pens and tippex for the office.



You need to ask specific questions... about what you're thinking of doing.. your accountant may be vague as it' pretty simple, you can claim for practically every expense you incur while doing your job, except food and clothes, and you can't claim for anything else...

I'm not an accountant by the way,.. and I don't always strictly follow all the rules,.. like... I'd claim VAT back no problem on mobile phone credit even if the VAT wasn't displayed..
 
Expenses that are wholly and exclusively incurred for the purpose of the trade.
So motor expenses, phone, rent, all materials, accountancy fees, print post and stationary, wages, insurance ect.
Have you particular expenses that you have in mind?
 
VAT on Diesel

I know you can't reclaim any VAT on petrol, but can you claim VAT back on Diesel if you need to do a lot of travelling for the business as a sole trader?
 
I worked self-employed for 12 years, are you paying your accountant, he should know about all the above. Also if you go on the revenue site they will advise what you can claim for. I know as a sole trader you have more flexibility with red tape, but in present circumstances, maybe consider forming a Limited Company.

Without knowing your customer payment records, size of turnover etc. its hard to offer advise, other than to say all the above is good.
 
I know as a sole trader you have more flexibility with red tape, but in present circumstances, maybe consider forming a Limited Company.

Sorry,no offense...what do you mean by that please !! Tia.
 
Get a new accountant who you can talk to and get advice from. The one you have sounds like a plonker and a chancer!
 
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