Mate, need some advice,
Got a large problem at home, My darling is puking up every morning, I’ve had an accident and we’re expecting Jack and Jill to arrive in about 9 months time. Mate, I need additional income now. If I start earning money from a baby nappy rash website, I have setup in my spare time, will I have to pay tax and NI on that income? I am also employed full time on a salary of £125,000 a year.
Yours ever so grateful, Lucky Lucky Daniel M
Congratulations Danny
You should register your new web business with the tax office as a self-employed business. We can help you do this if you wish. Your self-employment will not affect your
employment, and your employer need not know about your website business. However, you will have to complete a tax return each year to declare all of your income; from your
business, employment and any investments. By registering as self-employed you will also be automatically registered to pay class 2 NI in respect of your self-employed profits. If these profits are expected to be less than £5,075 for the current year, you should complete form CF10 which is a request for exemption from paying class 2 NI.
Monday 20 July 2009
1st Class train fairs
Dear Lovely,
My business requires me to have up to 100 days a year away from home spanking at conferences. I always travel first class rail, to allow me to prepare on the way, and stay in four-star accommodation because my clients expect it. The Tax Inspector has said my expenses are excessive and I should only get a tax deduction for the cost of second class travel and two-star accommodation. Why isn’t he saying this to all those dodgy MPs that have made “innocent” mistakes. Is he correct? Yours Eileen Double-Barrelled
Dear Mrs Double-Barrelled,
The Tax Inspector is not correct. His own Employment Income Manual at paragraph EIM 31835 says: "The tests that apply to travel expense relate to the nature of the expense and not to the amount." It goes on to say: "You should not refuse a deduction for first class rail travel, if that has been incurred, on the basis that the same journey could have been made more cheaply in standard class". As long as the travel and accommodation costs were incurred wholly and exclusive for your business of “spanking” the full cost can be claimed.
My business requires me to have up to 100 days a year away from home spanking at conferences. I always travel first class rail, to allow me to prepare on the way, and stay in four-star accommodation because my clients expect it. The Tax Inspector has said my expenses are excessive and I should only get a tax deduction for the cost of second class travel and two-star accommodation. Why isn’t he saying this to all those dodgy MPs that have made “innocent” mistakes. Is he correct? Yours Eileen Double-Barrelled
Dear Mrs Double-Barrelled,
The Tax Inspector is not correct. His own Employment Income Manual at paragraph EIM 31835 says: "The tests that apply to travel expense relate to the nature of the expense and not to the amount." It goes on to say: "You should not refuse a deduction for first class rail travel, if that has been incurred, on the basis that the same journey could have been made more cheaply in standard class". As long as the travel and accommodation costs were incurred wholly and exclusive for your business of “spanking” the full cost can be claimed.
Monday 13 July 2009
Keeping VAT man away
How you doin,
Having a F*****g shit time, my rabbit’s dead, pedigree greyhound is pregnant, got athletes foot and my sales have fallen off drastically in the last few months and my customers are getting much more price sensitive - b******s. Can I deregister for VAT and so effectively drop my prices? Or should I just deal in cash and pocket it all?
Cheers mate, Gazza
Dear Gary
If your total sales for the last 12 months have been less than £65,000, and you expect them to stay below this threshold for the next 12 months you can ask HMRC to cancel your VAT registration. This is not an automatic process and the VAT office may not grant you permission to escape the VAT net. You need to complete form VAT 7, which can be downloaded from the HMRC website, and give some convincing reasons on that why your turnover is unlikely to rise above the
compulsory VAT registration limit (£67,000) in the foreseeable future.
Having a F*****g shit time, my rabbit’s dead, pedigree greyhound is pregnant, got athletes foot and my sales have fallen off drastically in the last few months and my customers are getting much more price sensitive - b******s. Can I deregister for VAT and so effectively drop my prices? Or should I just deal in cash and pocket it all?
Cheers mate, Gazza
Dear Gary
If your total sales for the last 12 months have been less than £65,000, and you expect them to stay below this threshold for the next 12 months you can ask HMRC to cancel your VAT registration. This is not an automatic process and the VAT office may not grant you permission to escape the VAT net. You need to complete form VAT 7, which can be downloaded from the HMRC website, and give some convincing reasons on that why your turnover is unlikely to rise above the
compulsory VAT registration limit (£67,000) in the foreseeable future.
Grafting from Home
Morning Ilyas
I was hoping you could help me out mate (seriously, and you can add this to your newsletter if u want)
What can I do about claiming for electricity for working from home all the time, my bills are high and I do not contribute from the business, what can I claim back through the business on a monthly basis?? I need to get this set up ASAP. Many Thanks as always. Ants
Dear Ants
You work nights out of back of a van,
showing porno movies in village halls and sleep during the day. The only electricity bill you should have is the electric blanket on your bed!
The simplest method to claim for any bills you incur as a direct result of working from home is to total all your bills and apportion part of it to the business and claim so much per week. Isolating part of a house for business use and claiming all expenditure against that part of the house is in my
opinion not a good idea. The problem with this is that when you sell your house part of the proceeds will be liable to Capital Gains Tax.
Don’t be greedy claim a few quid a week and wear a jumper.
I was hoping you could help me out mate (seriously, and you can add this to your newsletter if u want)
What can I do about claiming for electricity for working from home all the time, my bills are high and I do not contribute from the business, what can I claim back through the business on a monthly basis?? I need to get this set up ASAP. Many Thanks as always. Ants
Dear Ants
You work nights out of back of a van,
showing porno movies in village halls and sleep during the day. The only electricity bill you should have is the electric blanket on your bed!
The simplest method to claim for any bills you incur as a direct result of working from home is to total all your bills and apportion part of it to the business and claim so much per week. Isolating part of a house for business use and claiming all expenditure against that part of the house is in my
opinion not a good idea. The problem with this is that when you sell your house part of the proceeds will be liable to Capital Gains Tax.
Don’t be greedy claim a few quid a week and wear a jumper.
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