sole trader/working@home query

tiptoe

Ive just set up as a sole trader and am working from home.

Can i claim some energy bills or a proportion of them as business expenses?

Also, what about my car- is the insurance and tax a business expense even though its the family car?

thanks

masterK

The best thing to do is to talk to your accountant. I used to do something similar, my accountant told me to keep all domestic bills and he would include them as partial expenses at the end of the year. He basically said you can do it once you don't get too greedy.

With the car as far as I know it would need to be a commercial diesel vehicle to qualify (that's why you see so many people who work for themselves driving jeeps).

One other thing to be aware of, I remember reading somewhere that local councils were cracking down on people working from home who did not pay business rates for utilities. This is because your home is effectively your business premises and as a business you are required to pay rates to the council. I don't know how true this is in reality.

Baby4

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tiptoe

thanks for that advice.

on another note: would anyone have basic bookkeeping templates, as excel files or similiar?

Cantab.

Baby4 wrote:

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Does this 'diesel only' rule apply to taxi drivers with limited companies too? I'm thinking of buying a plate and inside a VAT registered limited company. I've an unleaded fueled car.

Baby4

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ircoha

one issue here relates to the partial use of the family home for a business and the effect it may have on the disposal of the house from a CGT perspective.

As already pointed out speak to your accountant and discuss the pro and cons of sole trader versus Ltd company as well as the net benefit of actually claiming the esb etc. Do you need the increased attention?

What I do is charge expenses that can be 100% identified as being business related eg a separate fone line or use skype etc but i dont get into apportionment as it requres u to show the whole lot and the more the Revenue see....

On the car, can you charge the revenue mileage rates and keep records of business related trips?


re the book-keeping there are lots of basic accounting packages around that will be very cost effective if you only have a low number of entries.

Google for MYOB or Quicken or see www.thesaurus.ie

Baby4

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Cantab.

Baby4 wrote:

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Jeez! I have a petrol car already and I won't be changing to a diesel one for the moment. I don't mind too much not being able to get VAT returns on the petrol for now, but having said this, I am quite tight and very much believe that 'the pennies make the pounds'.

The reason I'm setting up as a limited company is that my main area is in electronic design/consulting and am using the taxi driving to get the thing off the ground cash-flow wise. So I'll need a VAT number to buy equipment and parts which is where pretty much all of the money I make from driving will go initially until I get my projects from design stage into sales.

You're right about the paperwork overhead, but it has to be done if I want to avail of VAT-free cheap supplies, plus it's a lot more professional to be doing contracts as a ltd. company.

So if I were to proceed just recording all my fares, paying the petrol out of the cash (keeping receipts of course), and using any profits to inject into buying parts and equipment for the electronic end of the business, would this pose any problems do you think? Presumably I can still write off things like car servicing and installation of a new seatbelt against tax?

It's probably not worth messing up my bills with the business expenses, so point taken. I will be working from home for the foreseeable 6 months. What about council rates and water charges? How much are these does anybody know? I live in rented accomodation and haven't told my landlord (I'm very good friends with his son and I get on really well with his father who owns about 50 houses and hardly notices me living in his house). Or have I lost the plot completely? I see this as being the only way to proceed at the moment.

Baby4

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ircoha

Baby4: The question I was posing to ask the Revenue re the car : Can the OP charge travelling expenses in his new company for using the family [ or in this case the taxi] car for new company business use, using the Civil Service rates as the basis of charge.

The taxi trade and the new business will be taxed separately and be sure to keep two sets of books

Baby4

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