Self Employed, Almost no expenses.

Cunning Alias

Iv been self employed for a year now since I left college. Currently working as a consultant for two software companies and I also have my own website development business for when I have time off.

The way my tax is going to work is starting to hit home and I am curious about what I can claim for.

I purchased all the computer hardware I use before I started working for myself and I use almost all open source software. Anything commercial (E.g. Visual Studio) has been provided for me.

I am planning on buying a new desktop which will go down as an expense. Does this go in as a capital expense?

My only costs I can think of are my car/petrol (drive to one of the jobs and to meet web clients), Bus fare (to the other job). Can I claim for these? What about if I bought a new car which would be for about 50% business use?

Are there any other day to day costs that I could claim for?

Seems like I am going to be screwed by this lower tax free allowance for the self employed.

Sorry for the length. Any advice would be welcome.

Trojan

My best advice is to ask around people you trust for recommendations on a good accountant. Give the accountant a call, find out typical fees and if they'll meet up.

A good general rule is that a decent accountant should save you their own fees worth.

I found there seemed to be 2 types of accountants - the ones where annual accounts were cheap, but whenever I picked up the phone there was an associated bill. The others where annual fees were more expensive, but there is never a bill for phone calls so I don't mind calling for advice. I prefer the latter, but the former may suit you if you're on a very tight budget.

NathanKingerlee

Do you have an accountant? They're great for helping you to push your expenses to the allowed limits.

Capital expenses, such as work vehicle and computers can be back-dated to before you started trading.

I'd suggest treating your entire life as one big business related expense. Every coffee and sandwich you buy is a travel expense on your way to work. If you're renting a private house, have you an office there? If so part of your rent can be written off as office premises rental and same with your home heating bills. With the clothes you buy, are some of them being brought for work? Could 50% - 80% of your phone bills be work related?

Don't quote me on this, but I wouldn't worry about a lack of receipts for the first couple of years, as I think that Revenue only audits people when it's really worth their while to do so; so from year 3/4 onwards have receipts for everything.

Cunning Alias

Thanks for the replies. I have a family friend who is an accountant who helped me out with the TR1 form etc at the start. I imagine I will see him again soon.

Iv been told the whole write off rent can be alot of trouble. Also the apartment had the condition that it would not be used as a place of business. I will inquire about it though.

I have been fairly good with petrol reciepts and I have access to all my phone bills. Would have never though of clothes and food.

Thanks for the advice.

Anyone know anything about buying a car for 50% use. I was planning on buying a new car before xmas so it would be great if I could save some money on it. I genuinely use it 50% or more for business.

tombull82

you can buy a new diesel which is rated as low co, like a 1.4 Td or something and claim back a percentage of the VAT. I'm on mobile boards now but post up more about later

tombull82

have a read here. http://boards.ie/vbulletin/showthread.php?p=63123901#post63123901