Sub-contracting Information Again!

[gupster]

Thanks for all the info dave you have been very very help ful

At the miniute my first few months will just be doing subby work to other companies as im now booked in for quite a while So with this in mind im not paying out much at all so being vat registered isnt a must for me in the first few months, but as you said it will be very benificial to go that way soon.

About sage i can get the whole package for free (i wont say were from)! But ive now been looking at the quickbooks startup edition

[Guest]

You say you are not paying much at the moment, would you rather pay

[gupster]

Finally got a few miniutes to sit down and start working some things out and catch up with paperwork.

I now have my accounts software and just about to start using it i know that you enter all the payments for items like drills, kit, ladders, stationary and so on but do i have to enter every recipet for fuel??? As you dont claim all the fuel back you just claim per mile??

,

Adam

[ian.cant]

You claim back the VAT youve paid on the fuel!

Receipt are your personal gold dust, keep every one you can, car parking tickets even if you buy a 3 pin plug at ASDA's keep the receipt and count it in.

Anything you buy for the house, filler, no more nails screws, put the receipt in. I dare not tell you all the receipts i put through to the accountant, he's questioned the odd one but every penny counts as a business expense.

[Guest]

Finally got a few miniutes to sit down and start working some things out and catch up with paperwork.

I now have my accounts software and just about to start using it i know that you enter all the payments for items like drills, kit, ladders, stationary and so on but do i have to enter every recipet for fuel??? As you dont claim all the fuel back you just claim per mile??

,

Adam

Adam

You have to enter every receipt. Even if you park in a car park, keep the receipt. When you work away from home keep receipt for accomadation, breakfast, evening meal (sorry can't claim lunch). Keep every receipt which could possibly be called a business expense.

Dave

[amateurandy]

....do i have to enter every recipet for fuel??? As you dont claim all the fuel back you just claim per mile??

,

Adam

Are you self-employed or are you setting up a company?

If self-employed then you definitely DON'T count fuel (or any other vehicle costs) as an expense if you use the Inland Revenue "simple" method; you just use 40p per mile (to whatever the limit is, then 25p I think) as the cost. (I don't do enough miles to drop from 40p )

There is an alternative way of accounting for vehicle costs where you work out and apportion it all, but you'll definitely need an accountant for that.

As for being VAT registered and claiming back the VAT on fuel and other vehicle costs - I don't know, but it doesn't sound right unless you use the "alternative" method. Ask an accountant or the tax office!

[Guest]

....do i have to enter every recipet for fuel??? As you dont claim all the fuel back you just claim per mile??

,

Adam

Are you self-employed or are you setting up a company?

If self-employed then you definitely DON'T count fuel (or any other vehicle costs) as an expense if you use the Inland Revenue "simple" method; you just use 40p per mile (to whatever the limit is, then 25p I think) as the cost. (I don't do enough miles to drop from 40p )

There is an alternative way of accounting for vehicle costs where you work out and apportion it all, but you'll definitely need an accountant for that.

As for being VAT registered and claiming back the VAT on fuel and other vehicle costs - I don't know, but it doesn't sound right unless you use the "alternative" method. Ask an accountant or the tax office!

Andy

What do you think you are when you run your own company? You are self employed.

Dave

[amateurandy]

What do you think you are when you run your own company? You are self employed.

Dave

No, you're not.

You are probably a Director, and an employee too.

You pay yourself in Dividends and/or a salary (and bonuses etc.).

Are you confusing a Sole Trader trading as (T/A) a business name (e.g. Fred Bloggs T/A Bloggs Alarms) with Bloggs and Co a Registered Company trading as Bloggs Alarms? The former is not a company.

Then there's partnerships, etc. just to confuse things....

Just for the record, in the last year I have been a Director, employee and sole trader - all at the same time on different work. I've been paid in Dividends, salary and takings from my self-employed business. The tax isn't difficult, you just have to be careful, pay the right NI and fill the forms in.

[Guest]

What do you think you are when you run your own company? You are self employed.

Dave

No, you're not.

You are probably a Director, and an employee too.

You pay yourself in Dividends and/or a salary (and bonuses etc.).

Are you confusing a Sole Trader trading as (T/A) a business name (e.g. Fred Bloggs T/A Bloggs Alarms) with Bloggs and Co a Registered Company trading as Bloggs Alarms? The former is not a company.

Then there's partnerships, etc. just to confuse things....

Just for the record, in the last year I have been a Director, employee and sole trader - all at the same time on different work. I've been paid in Dividends, salary and takings from my self-employed business. The tax isn't difficult, you just have to be careful, pay the right NI and fill the forms in.

Point taken.

I hardly think that Gupster is going to form a limited company to do a bit of subbying, do you? He will therefore be a sole trader which is a similar legal entity to us who are a partnership.

When you are self employed in a Partnership you keep receipts for all your fuel and claim it back. You don't pay pence per mile. Our accountant is wading through our invoices and receipts at the moment. We run 4 vehicles and all the costs for these go through the Partnership and are set against our tax liability.

If you a director of a company and you choose to use your own vehicle in the course of the business then as you say you cliam back so much pence per mile.

VAT is a seperate issue to income tax. You claim your VAT from purchases back against your VAT invoiced. If you have a van you can claim 100%. If you drive a car you can claim a percentage, or pay a scale charge to claim 100%.

My advice to Gupster is to keep all your receipts and sort it out when you get an accountant.

Dave

[gupster]

,

Bascially what i have just done with my quickbooks is entered in the cash expensises section all my reciptes for ladders, stationary, trunking, fixings and insurance etc

I suppose i will just keep all my fuel reciptes untill i speak to an account to double check what im ment to do with them. Someone the other day also asid i cant just put down the whole cost of my van as there is a funny way of dealing with that as well.

Just to let you know ive now been setup for two weeks now and im booked up for the next few months and counting In the last week ive been to Cardiff, Birmingham, Manchester, Sussex and London!!

If you have anything up your way dave you need a hand with let me know.

Thanks again for all your help,

(Yes i am just a sole trader T/A CFS Fire & Security)