Hello All,
Today I filled in my first VAT return. I was wondering if I can claim the bill as an expense on my end of year tax return?
Also, can I claim the 'employers contributions' part of the payslips I provide to the staff as an expense on the end of year tax return? The way I see it is that I wouldn't have that bill unless I had the business, therefore it is a business expense.
Many thanks
Edita
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Replies (10)
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yes you can
you can claim whatever you want, as it is self-assessment now, meaning you self-assess your own tax.
" I was wondering if I can
" I was wondering if I can claim the bill as an expense on my end of year tax return?"
No
"Also, can I claim the 'employers contributions' part of the payslips I provide to the staff as an expense on the end of year tax return? The way I see it is that I wouldn't have that bill unless I had the business, therefore it is a business expense"
You can claim employers NIC as an expense.
I would look for an accountant as you don't have the knowledge to do your own tax.
agree with Peter
And you could also claim your employers contribution to your employees pensions, providing you make such a contribution.
@Tony
Regardless of how self-assessment works, how can you justify advising someone that their VAT bill is an allowable expense? It may be, under the Flat-Rate Scheme, but since the OP doesn't mention that, I think that your response requires some clarification.
tongue in cheek I think
Regardless of how self-assessment works, how can you justify advising someone that their VAT bill is an alliwable expense? It may be, under the Flat-Rate Scheme, but since the OP doesn't mention that, I think that your response requires some clarification.
I suspect the first response was a way of saying you can claim anything you like
It may well have been tongue-in-cheek
Regardless of how self-assessment works, how can you justify advising someone that their VAT bill is an allowable expense? It may be, under the Flat-Rate Scheme, but since the OP doesn't mention that, I think that your response requires some clarification.
I suspect the first response was a way of saying you can claim anything you like
But there is nothing to indicate as such (usually a smiley is added). An uninformed person could quite easily have made a bad decision on the back of that 'advice'.
David W - precisely, your suggested method is commonly used when using the FRS.
@bkd
Perhaps it was the pre SSAP 5 treatment? Lol or the fact that if you don't have an accountant you can put anything you like on your return and it will probably not be noticed. Much depends on whether you want to get your tax affairs correct or not? To the opening poster a good accountant will save you money legally!
Accounting treatment of VAT
Ideally sales and costs should be accounted for exclusive of VAT. One - rough and ready - way of coming to the same result overall would be to account for the gross amounts and deduct the net VAT paid to HMRC as an expense.
So maybe not such a daft idea?
David
Simplex D
Ideally sales and costs should be accounted for exclusive of VAT. One - rough and ready - way of coming to the same result overall would be to account for the gross amounts and deduct the net VAT paid to HMRC as an expense.
So maybe not such a daft idea?
David
Used to have a client with a shop who kept a good old Simplex D cash book (very well actually) and who did precisely this, the only thing to watch is the possible need for a VAT debtor/creditor at year end in order to get the profits right.
However must agree with the general sentiment OP, get yourself some professional assistance as the potential cost of getting it wrong these days with HMRC can be horrendous.