Tax Return - allowable expenses.
Tax Return - allowable expenses.
Author
Discussion

thismonkeyhere

Original Poster:

11,755 posts

261 months

Monday 13th May 2013
quotequote all
Well, tax return time again. Just pondering 'allowable expenses'.

Naturally keen to lower the tax bill (legally, natch), have got the usual business travel and professional membership malarkey going in. Getting into the HMRC notes online. Any other legit allowables that anyone can tip me off to? Grey matter on 'go slow' today.....

Eric Mc

125,770 posts

295 months

Monday 13th May 2013
quotequote all
Employed or running a business?

(Probably should be moved to the "Business", "Finance" or "Jobs & Employment" forum).

thismonkeyhere

Original Poster:

11,755 posts

261 months

Monday 13th May 2013
quotequote all
Employed. I have a feeling the twon I've mentioned are 'it' for me, but you never know.

(You're probably right)

Eric Mc

125,770 posts

295 months

Monday 13th May 2013
quotequote all
What expenses do you actually have that are work related?

thismonkeyhere

Original Poster:

11,755 posts

261 months

Monday 13th May 2013
quotequote all
Well, business travel and professional fees as mentioned. Beyond that I'm just mulling it over to see if I can identify anything else.

I have, through necessity, to spend a fair bit on suitage and dry cleaning etc, but although I can't find this in b&w anywhere, I have a feeling that it has to be a uniform before you can claim for upkeep, despite the fact that I have no choice in the matter.

Another Q if I may Eric - pension income. Can't believe I don't know this, but also can't seem to find it in b&w. I'm already a higher rate payer through employment. Is my pension income therefore taxed at 40% or is it treated separately?

Eric Mc

125,770 posts

295 months

Monday 13th May 2013
quotequote all
It will be taxed at 40%. It should be taxed as such through the PAYE system. Check the 2012/13 P60 you received from the pension provider to see if tax was properly deducted on the pension in the year to 5 April 2013.

Regarding employee costs - there aren't that many.

Clothing costs are generally not allowable unless the clotyhing is

a dedicated uniform

safety clothing (helmets/protective boots/flourescent jackets etc)

If you are a higher rate taxpayer - you should also be paying higher taxes on any other income you receive, such as dividends or bank/building society interest.

You can mitigate some higher rate tax by making certain types of payments - such as pension contributions (not likely in your case as you now receive a pension) or donations to charities under Gift Aid/Deeds of Covenant.

Dominicc01

530 posts

197 months

Monday 13th May 2013
quotequote all
thismonkeyhere said:
Well, business travel and professional fees as mentioned. Beyond that I'm just mulling it over to see if I can identify anything else.
As an employee, very unlikely.

thismonkeyhere said:
I have, through necessity, to spend a fair bit on suitage and dry cleaning etc, but although I can't find this in b&w anywhere, I have a feeling that it has to be a uniform before you can claim for upkeep, despite the fact that I have no choice in the matter.
Correct. There is a list of occupations for which there is a tax deductible clothing allowance. Basically, if you have to wear a uniform, you can deduct a certain cost for buying it, and costs related specifically to washing it subsequently.

There was a test case many moons ago where someone claimed that a suit was effectively a "uniform", but the judge was having none of it, on the grounds that a uniform you would never wear outside of work, but there are plenty of occasions you might wear a suit outside work. Stupid argument, but HMRC won.

thismonkeyhere said:
Another Q if I may Eric - pension income. Can't believe I don't know this, but also can't seem to find it in b&w. I'm already a higher rate payer through employment. Is my pension income therefore taxed at 40% or is it treated separately?
Yes, it will be taxed at 40% as the top slice of income.

thismonkeyhere

Original Poster:

11,755 posts

261 months

Monday 13th May 2013
quotequote all
Thanks guys.

So, to sum up: There's not much I can claim for and I just need to pay shedloads of tax.

Pretty much what I thought.

Cheers!

hehe

isee

3,713 posts

213 months

Monday 13th May 2013
quotequote all
Eric,
If I am not mistaken you are an accountant right?
I am looking for a new accountant for my business... My last one couldn't remember my name seconds after I corrected him, so well.. I am looking for a new accountant smile

Eric Mc

125,770 posts

295 months

Monday 13th May 2013
quotequote all
I forget my own name sometimes.

I am an accountant.

hairyben

8,516 posts

213 months

Monday 13th May 2013
quotequote all
What do you do? What are you looking to claim?

If you have dedicated office space at home thats tax-deductible in necessary.

I find the HMRC advice people on the telephone quite helpfull.

I evan wote off a £450 dyslexia assessment on myself once (the hmrc person sounded dubious, till I told him that as an employer I'd be in violation of the disability discrimination act by not doing so, at which point he said fine. Disability discrimination is one the most powerfull phrases you can use today.)

Eric Mc

125,770 posts

295 months

Monday 13th May 2013
quotequote all
Hold on.

What employees can claim for are much more restricted than what businesses (including "employers") can claim for.

sumo69

2,164 posts

250 months

Monday 13th May 2013
quotequote all
Eric Mc said:
Hold on.

What employees can claim for are much more restricted than what businesses (including "employers") can claim for.
Yes - certainly is.