Self Employed accounts and tax

M

money man

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Hello,
Posting this query for a friend who is self-employed. She commenced in February 2008. When will she complete her first set of accounts and for what period will she prepare returns for.
Is it from February to February and then payment of tax due in 31.10.09?

Also can she claim expences for lunch if she is working away from her office at a clients premises 150 kms away?
What other types of expences other than travel may be allowable. She frequently works from clients premises and is in the design business.
 
Has she registered yet with revenue? If she has, then she would have informed them of her year end. This can be changed by letting revenue know.

She can complete her accounts for whatever period she likes. If she wants to do a first "year" from February to December 2008, that is ok. It would be advisable for her to consult with an accountant now, as revenue have detailed rules in place for the commencement (and cessation) of self employment.
 
She has registered as self employed. I will get her to check if she put down an accounting period. i think there was just space for her to put down start date though?
 
The area of expenses can be quite difficult to get a handle on, especially if she is self-employed as a Sole Trader as opposed to an Owner/Director of her own Ltd. Co.

Some people will tell you that you can't claim for lunch regardless, because everyone has to eat. Some people will quote the 'subsistence' rule for Ltd Co. employees and use that as a guide.

However, from my understanding lunches can not be claimed. The general rule of thumb is anything that is genuinely used for business purposes can be claimed. For example, a percentage of home heating/electricity (if working from home), a percentage of all car expenses (if private car is used for travel to clients premises to work). A quick chat with an accountant will give you an idea of what these percentages can be, based on your level of use of each.

Other general expenses like equipment, stationery, advertising etc are all acceptable.
 
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