Tax deductions on Nixers for Plumber

bob5666

Hi just looking for bit advice .I work full time with company and I do a good few jobs as Nixers on weekends and evenings and use my van in doing so can I claim the tax and insurance and running costs of van as tax deductions ? Only really use van for nixers

J.Ryan

You could in theory claim an element

bob5666

J.Ryan wrote: »

You could in theory claim an element

Why an element just is it not an overhead that I have to spend before making money
Another question if I was to spent money on a plumbing course during the year for gas trainning can I deduct that againist my tax made from work on the side plumbing?

J.Ryan

How much of the vans annual use is involved in the "nixers" as oppossed to its total use.


It depends on the course, would your employer already have re-imbursed you?

bob5666

J.Ryan wrote: »

How much of the vans annual use is involved in the "nixers" as oppossed to its total use.


It depends on the course, would your employer already have re-imbursed you?

The van would just be used for nixers
My employer supplys me with a company
van for his work only
My employer would be paying for nothing too with the course

Luke92

bob5666 wrote: »

The van would just be used for nixers
My employer supplys me with a company
van for his work only
My employer would be paying for nothing too with the course

I'm pretty sure you have to be registered as self employed to get tax breaks on your own work van.

bob5666

Luke92 wrote: »

I'm pretty sure you have to be registered as self employed to get tax breaks on your own work van.

I am registered just as a sole trader
Do they not get tax deductions for costs involved in work they do ?

Luke92

Yeah sorry I didn't mean to say just self employed I just meant being registered whether a sole trader or anything really.

Once you are registered with revenue and keep receipts/invoices of all your work and pay any taxes you owe then you should be entitled to tax breaks on your work van.

barneystinson

bob5666 wrote: »

I am registered just as a sole trader
Do they not get tax deductions for costs involved in work they do ?

If I was a tax inspector looking at your case I'd have a critical question:

Did you own the van before you were a sole trader?

If so, and you're now asking me to accept its only used for your sole trade, then there are only 2 plausible conclusions:
1. You were doing nixers using the van before you started declaring the business (and that creates a problem for you), or
2. You bought the van at day 1 for private purposes, so it must still have an element of private usage.

bob5666

barneystinson wrote: »

If I was a tax inspector looking at your case I'd have a critical question:

Did you own the van before you were a sole trader?

If so, and you're now asking me to accept its only used for your sole trade, then there are only 2 plausible conclusions:
1. You were doing nixers using the van before you started declaring the business (and that creates a problem for you), o

r
2. You bought the van at day 1 for private purposes, so it must still have an element of private usage.
I have since brought a motorbike which I use for private usage is that not plausable ? Or would it have to be a car ?

bob5666

Luke92 wrote: »

Yeah sorry I didn't mean to say just self employed I just meant being registered whether a sole trader or anything really.

Once you are registered with revenue and keep receipts/invoices of all your work and pay any taxes you owe then you should be entitled to tax breaks on your work van.

I just have to prove that I dont use my van for private usage I would think too ?

barneystinson

barneystinson wrote: »

If I was a tax inspector looking at your case I'd have a critical question:

Did you own the van before you were a sole trader?

If so, and you're now asking me to accept its only used for your sole trade, then there are only 2 plausible conclusions:
1. You were doing nixers using the van before you started declaring the business (and that creates a problem for you), o

r
2. You bought the van at day 1 for private purposes, so it must still have an element of private usage.

bob5666 wrote: »

I have since brought a motorbike which I use for private usage is that not plausable ? Or would it have to be a car ?

Not really plausible that you have a van and never use it to go to the supermarket, or when giving someone a lift, or to drop your kid to school, etc...

Luke92

barneystinson wrote: »

2. You bought the van at day 1 for private purposes, so it must still have an element of private usage.

He could say : yes originally it was used as both a private and work van, as I can now afford a car the van will solely be used for work.

So yes someone can have a van that is solely used for commercial uses and not private.

They have to take his word for it. How can they prove otherwise?

barneystinson

Luke92 wrote: »

He could say : yes originally it was used as both a private and work van, as I can now afford a car the van will solely be used for work.

So yes someone can have a van that is solely used for commercial uses and not private.

They have to take his word for it. How can they prove otherwise?

I didn't say they couldn't. What you're saying might be fine if he had a car, but he doesn't.

How it could be proven otherwise - I can think of a couple of ways, based on records that should/would be available in an audit scenario, to test the credibility of an assertion that the van is only used for business.

It's not about taking a person's word for it or not, it's about critically considering whether the available evidence supports their assertion, ie is there any reason to doubt what they're telling me...