Previous years expenses? Previous years expenses? - Page 2
Page 2 of 2 FirstFirst 12
Posts 11 to 20 of 20
  1. #11

    Super poster

    Lance's Avatar
    Join Date
    Sep 2013
    Location
    home
    Posts
    4,970

    Default

    There are two elements to the tax relief here. Personal and company.
    For personal just ring HMRC and ask them if you can do several years in one SA.
    For company ask an accountant.

    In addition, if for the same client, then the 24 month rule may well apply. Read the links to the right on those.
    See You Next Tuesday

  2. #12

    Still gathering requirements...


    Join Date
    Sep 2013
    Posts
    27

    Default

    Quote Originally Posted by Lance View Post
    There are two elements to the tax relief here. Personal and company.
    For personal just ring HMRC and ask them if you can do several years in one SA.
    For company ask an accountant.

    In addition, if for the same client, then the 24 month rule may well apply. Read the links to the right on those.

    Thank you for the reply.

    Obviously I have always done it against my company to reduce corporation tax.

    Therefore should he not be doing it against his company? What's the difference if he does it on his SA?

  3. #13

    Fingers like lightning

    wattaj's Avatar
    Join Date
    Aug 2006
    Posts
    881

    Default

    So, I have a question: does your "friend" have an accurate mileage log to support such a claim; one that would withstand scrutiny from HMRC?

    Ok, so two questions: does the two year rule not apply here, and why not?

    ---

    Former member of IPSE.


    ---
    Many a mickle makes a muckle.

    ---

  4. #14

    I live on CUK

    Old Greg's Avatar
    Join Date
    Mar 2007
    Location
    The Tombliboo Bush
    Posts
    24,181

    Default

    Quote Originally Posted by 325i View Post
    Thank you for the reply.

    Obviously I have always done it against my company to reduce corporation tax.

    Therefore should he not be doing it against his company? What's the difference if he does it on his SA?
    SA is simpler but will not reduce CT.
    Quote Originally Posted by Bean
    I admit that I'm a lazy lying cretin, but so what?
    25 June 2018

  5. #15

    Still gathering requirements...


    Join Date
    Sep 2013
    Posts
    27

    Default

    Quote Originally Posted by wattaj View Post
    So, I have a question: does your "friend" have an accurate mileage log to support such a claim; one that would withstand scrutiny from HMRC?

    Ok, so two questions: does the two year rule not apply here, and why not?

    I am not sure but presume so. That's something for him.

    Quote Originally Posted by Old Greg View Post
    SA is simpler but will not reduce CT.
    Thanks, understand. But by putting it on the SA, it will reduce income tax?

  6. #16

    I live on CUK

    Old Greg's Avatar
    Join Date
    Mar 2007
    Location
    The Tombliboo Bush
    Posts
    24,181

    Default

    Quote Originally Posted by 325i View Post
    I am not sure but presume so. That's something for him.



    Thanks, understand. But by putting it on the SA, it will reduce income tax?
    Google Tax Relief etc. etc.
    Quote Originally Posted by Bean
    I admit that I'm a lazy lying cretin, but so what?
    25 June 2018

  7. #17

    Super poster

    Lance's Avatar
    Join Date
    Sep 2013
    Location
    home
    Posts
    4,970

    Default

    Quote Originally Posted by 325i View Post
    I am not sure but presume so. That's something for him.



    Thanks, understand. But by putting it on the SA, it will reduce income tax?
    Yes.
    It works if you’ve done business mileage but not been recompensed.
    You get tax relief on 45p per mile for 10,000 miles and 22p per mile after that.
    See You Next Tuesday

  8. #18

    Still gathering requirements...


    Join Date
    Sep 2013
    Posts
    27

    Default

    Quote Originally Posted by Lance View Post
    Yes.
    It works if you’ve done business mileage but not been recompensed.
    You get tax relief on 45p per mile for 10,000 miles and 22p per mile after that.
    Thanks. So in summary his tax relief is against the dividend tax of 7.5%.

    Obviously if he'd had done it properly it would of been relief on the company against corporation tax which would of been against 19%!!!

  9. #19

    Super poster

    Lance's Avatar
    Join Date
    Sep 2013
    Location
    home
    Posts
    4,970

    Default

    Quote Originally Posted by 325i View Post
    Thanks. So in summary his tax relief is against the dividend tax of 7.5%.

    Obviously if he'd had done it properly it would of been relief on the company against corporation tax which would of been against 19%!!!
    his tax relief is against his income tax. So yes if he's drawing small salary and dividends.
    See You Next Tuesday

  10. #20

    My post count is Majestic

    northernladuk's Avatar
    Join Date
    Mar 2009
    Posts
    43,315

    Default

    Quote Originally Posted by 325i View Post
    Thanks. So in summary his tax relief is against the dividend tax of 7.5%.

    Obviously if he'd had done it properly it would of been relief on the company against corporation tax which would of been against 19%!!!
    Which would have been a lot more than the cost of a decent accountant......
    'CUK forum personality of 2011 - Winner - Yes really!!!!

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •