Advice Self employment and tax shizzle

[Bahumat]

All I know is Big G is gonna be fucked in prison for all this tax evasion. Don't do it bro, think of the ho's

 

[milou]

If you declare yourself self-employed and setup your own company (let's say, "Derp Photography"), can you claim back the VAT on photographic items purchased, even the fuel used to go to photography locations? Can you run your company at a perpetual loss just to avoid paying tax on "company" related items?

Yes. It's what I do. It took a matter of moments to register online. I make healthy PAYE payments so when I started receiving an income from the snapping, I registered as self-employed for that aspect. This year I paid an accountant £200 to prepare accounts, and do my tax return. Whilst I made a profit, (on photo sales of £6k), I obtained a refund of £700 due to capital allowances (namely buying the TSE lens and other manly gear). I record all photographic related mileage at 40p per mile (I wouldn't exceed 10k miles) and keep all records of photography related expenditure. Although I took photos on holidays I didn't make a claim for the cost of the trips but I would do so if the trip was entirely photo related. In essence, I record everything and the accountant does the allowance calculations etc. The accountant is looking into the two prior years to ascertain if relief can be claimed.

 

[Wazzerphuk]

For each shot, can you claim the cost of the camera as new each time? ;D

 

[milou]

I buy a new one for each shoot and dispose of it when the battery expires.

 

[old.user4556]

Yes. It's what I do. It took a matter of moments to register online. I make healthy PAYE payments so when I started receiving an income from the snapping, I registered as self-employed for that aspect. This year I paid an accountant £200 to prepare accounts, and do my tax return. Whilst I made a profit, (on photo sales of £6k), I obtained a refund of £700 due to capital allowances (namely buying the TSE lens and other manly gear). I record all photographic related mileage at 40p per mile (I wouldn't exceed 10k miles) and keep all records of photography related expenditure. Although I took photos on holidays I didn't make a claim for the cost of the trips but I would do so if the trip was entirely photo related. In essence, I record everything and the accountant does the allowance calculations etc. The accountant is looking into the two prior years to ascertain if relief can be claimed.

Awesome post, makes perfect sense.

 

[milou]

I did the first two years tax returns myself but made no claim for relief and just carried forward any loss (hence the prior year mention above). The important thing is spend some cash on gear! No need to be VAT registered.

Plus rep all round!

 

[Turamber]

Saw my accountant this afternoon. Do you want me to look into your tax refund and make sure its all ok...for a nominal fee...Feck off!

People confuse the ability to submit Returns electronically themselves with preparing them correctly. Apples and oranges.

 

[Tom]

I've always used an accountant for the annual report and filing the tax return. In truth, because I loathe paperwork.