Registration process-can I still collect expenses...

[MicheH]

Hi there, I'm Miche and have been browsing the boards for ages while i've been waiting to get the registration process underway.

Now i'm on the road to being registered I was wondering whether I could keep all my outgoing receipts for setting up, stationary needed for my business and milage for courses before I am registered and registered for tax purposes or will this not count as it goes from the date I register with inland revenue?

I don't think i'm explaining myself very clearly. Basically i'm asking if I can hang on to my receipts for the things I buy for setting up my business before it's registered and add them to my accounts when I am able to contact inland revenue.

One other thing.. please could you tell me - on my receipts, the things I highlight, do I put the full amount to claim or am I just claiming for the 17.5 worth of the items.. basic question - please bare with me :blush:

Any help would be great - thanks

[FizzysFriends]

You should be able to claim setting up expenses.

I dont really understand what you are asking about 17.5?

[tulip0803]

You are entitled to claim the full cost of anything that you buy for the use of your business. It is not the VAT that you are claiming back it is the full expence against your earnings. If you keep all your receipts and put them through on the first day of minding as business start-up costs. Keep a note of you miles etc too.

I phoned the tax office and checked as I have receipts from 2 financial years and was told to just put them through on the first day that I actually become self-employed (start earning not when certificate comes through). You have to notify the tax office that you are self-employed within 3 months, I think, of starting work.

When you come to the end of the tax year you will have 2 figures, gross income and expences. If you take the expences away from the income you are left with your earnings for the year. This is what you will have to pay tax on if it is over the personal allowance but the tax man will work out if you need to pay him anything:)

[MicheH]

Thank you for clearing that up for me. I'm a really organised person and just keen to start things correctly.

Thanks again:thumbsup: