CAN YOU CLAIM EXPENSES BEFORE YOUR BUSINESS STARTS (SELF-EMPLOYED)?

Рет қаралды 4,314

2 жыл бұрын

Spent money on self-employed expenses before your business has started?
Wondering if you will get tax relief on items you already own, but want to use in your business? Well watch on
Topics include:
What expenses you can claim as self employed
Self-employed travel expenses
Self-employed working from home costs
Self-employed training costs
Self-employed entertainment
List of self-employed expenses
How you claim self-employed expenses
Self-employed capital allowances
Pre-trade expenses
Expenses for self-assessment
… and more!
If you have any questions on this, please comment below.
Self-employed expense basics video: • SELF-EMPLOYED EXPENSE ...
Self-employed motor expenses video: • SELF-EMPLOYED MOTOR EX...
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#accounting #tax #selfemployed

Пікірлер: 39

@BLESSINGMARIEE Жыл бұрын

Thanks so much for this video!

@HeelanAssociates Жыл бұрын

Glad you enjoyed!

@MBV1970 2 ай бұрын

Brilliant video, so helpful. One question - I brought in (not bought) a computer which I personally owned for use in my self employed business at the start of the financial year April '23. I use the computer full time for the business. I know what it cost when I originally purchased it several years before, and I have an idea of its value at todays value on eBay. But I don't have a figure for its value back in Apil '23. Is the best thing to look at the change in value between today and original purchase, then divide that change by the number of months between original purchase and April '23?

@HeelanAssociates 2 ай бұрын

With an asset that was personal, that you’ve now introduced to use in the business, you’d need to estimate the market value when introduced. As you say it could be difficult, so retain what info you can on comparables and make your best estimate. There is no fixed method of calculation sadly.

@MBV1970 2 ай бұрын

@@HeelanAssociates Many thanks, much appreciated.

@aaronshields3922 Жыл бұрын

Hi, love the videos. Very helpful. Quick question if you don't mind? How would it work if your start up costs mean you didn't technically make a profit for a few years. For example, let's say start up costs we're £100,000 but you only made £30,000 profit each year for 3 years, would that mean you pay no tax, as technically you still haven't made a profit?

@HeelanAssociates Жыл бұрын

If you made a tax loss, you usually wouldn't pay tax no. You could also often 'drag' this loss forward ready to offset against future profits, when the business picks up.

@YTMrB 2 жыл бұрын

OMG I had no idea about this! What if you are in year 2 of your business but you purchased something the year before you started? Did I have to claim the expense in year 1 return or can I still claim in year 2/3? Thanks so much!

@HeelanAssociates 2 жыл бұрын

It’s probably easiest depending if your still in the window, to just tweak the previous tax return. You can usually do this up to 12 months from the due date of the return (so usually 31st Jan year after the deadline)

@robman60 3 ай бұрын

Here's one. I started trading on 03 April 2023 and apparently my first period was 03 April 2023 to 31 March 2024. Did not have revenue until 18 April 2023. Because I received a large payment on 05 April 2024 and I thought this was still in the 23/24 tax year, I made a significant pension contribution. If I change my period from 06 April 2023 to 05 April 2024, will I be able to claim for my pre-commencement capital expenses?

@mollyhalligan5095 4 ай бұрын

This is a great video! Quick question - my mum is setting up a business to sell prints, I bought a printer for her to start printing these more professionally. Would she be able to claim this back if the purchase was under my name but she then paid me back for it just from a personal account?

@HeelanAssociates 4 ай бұрын

It’s hard to explain in a comment but there is likely a way to get tax relief for it. She’d need to have incurred the expense but in this scenario there is a couple of ways this could be true. Sorry it’s not very specific but the exact answer requires more questions / knowledge of the transactions / situation.

@RAK53801 2 жыл бұрын

This is very useful information thank you so much. I have been wondering 1.How far back I can go claiming expenses. I had assumed its upto a yr back or nothing 2. Can I still claim expenses even if I haven't made any profits?? That's the current trajectory atleast for the first yr. Will I get a relief paid back to me following submission of a tax return of a loss?

@HeelanAssociates Жыл бұрын

Hi Risper, Yes you can still claim expenses that make you a loss. You can often to chose to do many things with the losses, example being sometimes they can be offset against any job income where you'd paid tax, gaining a tax refund. Often people will just carry forward the loss to offset against future profits, just depends on the individual case.

@lucianacorp6081 Жыл бұрын

Thank you for this, your video has answered one of our questions, the other one is: can we put against my daughter in laws self employed business (new business) as an expense the building of an outside kitchen (medium sized wooden shed like building) with water and electricity supply direct to the building - this building is purely for her business. Thank you for any help

@HeelanAssociates Жыл бұрын

Sadly this one is too difficult to answer in a comment as you have many taxes to consider here. Maybe we will add to a video list . . . But in general, proceed here with caution and perhaps if unsure grab some direct advice on your situation (there will be several question/more info needed).

@lucianacorp6081 Жыл бұрын

@@HeelanAssociates thank you, thought it was going to be challenging, when I’ve been reading around what we can put as an expense.

@phoebeauyeung4298 Жыл бұрын

Hi! I’m a freelance counselor. my jobs always use the working mobile phone face time service to communicate my client and on call service, I have 2 mobile phone to separate business and private use. the working mobile phone is wholly and exclusively business-related. Unfortunately my working phone is broke, I will buy the new one. It's allowed business expenses or capital allowance?Thanks!

@HeelanAssociates Жыл бұрын

From your description certainly sounds claimable, and if bought outright likely a capital allowance claim.

@goosphil Жыл бұрын

Very helpful video. Just a quick question, please. I am ready to fill in online my first self-assessment. I was starting up the business for 4 years for a total of £10,000 before the first day of trading. So, do I need to add the start-up's total (£10,000) to the first day on my expenses sheet? Or is there a place to put it on the self-assessment

@HeelanAssociates Жыл бұрын

Presuming they are usual type of business expenses, they go in the same boxes as where you’d normally put that type of expenses - no special box

@goosphil Жыл бұрын

@@HeelanAssociates Thanks a lot for that. But do I need to add the start-up's total (£10,000) to the first day on my expenses sheet?

@HeelanAssociates Жыл бұрын

@@goosphil depends on the expense but in theory yes

@AlexN0me11 Жыл бұрын

Is there any point me transferring money into my sole trade business account to pay for a business mobile phone? Or if profit has been made, should I just use the profit to pay for the phone?

@HeelanAssociates Жыл бұрын

Hi Ant, slightly confused by the question sorry. If the business has the cash to pay for a business phone, I can't see a reason why you would need to transfer money in?

@katrinalagringa Жыл бұрын

Do you clarify in your videos which country’s tax laws you are referring to? Is this for the US?

@HeelanAssociates Жыл бұрын

@lisascott9424 2 жыл бұрын

My partner has just started a man and van buisness, is the inital cost of the van tax deductable and would the van insurance and tax also be deductable? Using cash basis accounting thanks

@HeelanAssociates 2 жыл бұрын

Short answer is yes possibly, have a look here SELF-EMPLOYED MOTOR EXPENSES EXPLAINED! kzfaq.info/get/bejne/hraerbGnsdaXm2w.html

@vanessacollins3997 8 ай бұрын

just found your video and i have a question. I have purchased a number of supplies for my hobby for about a year . I have decided to open a home based business. Can i used them as a deduction on my taxes? I have saved all receipts and i am setting up my bookkeeping can i enter what i purchased in my books?

@letsplaywitheesa1668 7 ай бұрын

If you are using those supplies to sell you can claim the costs as your business expense. If there is any personal use however you need to separate the value of that personal use and reduce the claim as such.Hope it helps. Feel free Dan to correct.

@HeelanAssociates 7 ай бұрын

It sounds like you are describing pre trade expenses. We couldn’t advise directly here but it they were pre trade expenses you record the bits you are using as if you bought them on day one.

@oldskoolmk2 Жыл бұрын

Is this applicable is you're in an LLP but you paid for items personally before forming the partnership?

@HeelanAssociates Жыл бұрын

In general yes, but does depend on exact circumstances/expenses.

@nata_b24 Жыл бұрын

Has the payment for course, which is helping me to start business can be deducted?

@HeelanAssociates Жыл бұрын

Generally no if we are talking about being a sole trader. Example driving instructor qualifications/initial training.

@nata_b24 Жыл бұрын

@@HeelanAssociates thanks

@definedbylinda 2 жыл бұрын

Can training expenses be claimed?

@HeelanAssociates 2 жыл бұрын

That's a video we are planning! As self employed its very challenging to be able to claim training, unless its like a refresher style course. The wording here is basically HMRC opinion: www.gov.uk/expenses-if-youre-self-employed/training-courses Different for limited companies oddly enough...