[Village Gleam]

I'm six months into my first financial year and trying to figure out my books and what my profit and loss should look like.
This is what I think I have found out. Vehicles as assets are kept seperatly and depreciate at 25%.
Other things, like the majority of my wfp stuff goes into an asset pool and also depreciates at 25%.

My trad gear I shall treat as an expense.

My web hosting advertising marketing I can put as an expence.And the £180 cost of my frontpage software.
Any computers printers I can claim 100% in the same year.

Anyone any criticisms cautions or comments? Anyone like to show me a profit and loss or earnings statement for our industry? (sole trader)

[dave0123]

am not sure about your first bit.

but computers desprecitates over a few years aswell.


Dave

[russ_clark]

save on the agro mate
go see an accountant

[Village Gleam]

Computers 100% in year of purchase fact, less a consideration for private us.
Ie, not three years

[colley614]

I went to see an accountant and as soon as I did and got told what I could claim for I had a new computer, a new phone and a new car within a couple of weeks. Oh and a water fed pole system

[Village Gleam]

Hi colley,
I've spent £4,500 on odds and bits for wfp, but my understanding is that this is in an asset pool that I can claim 25% depreciation from, not the full purchase cost.

25% of 4.5 is £1125, but the following year 08  09 this pool would be £3375 ( unless I buy something else in the meantime that goes into it ) and again in that year I can claim 25% of this figure and so on.

So what I am asking is, am I thinking along the right lines?

I hadn't thought about the phone.

[dave0123]

Well then i dont no! GO to an accountant mate best bet.


25% thing is abit mad tbh, because if its right look at it this way if you can only claim so much £1125 in the year of £4500 your books arnt really right are they? because youv still spent the money and havent made profit on it.

Maybe am talking crap thats why its best to get accountant to do it for u:P


Dave

[matt]

some of your WFP stuff is classed as a consumable, my account said items that will last you the year are consumable, thus filters, poles , fittings etc etc, so that will be 100 % the first year

[colley614]

I got told car is one to claim over a few years. Water fed pole gear can be claimed over a few years also. The parts of the system get paid out in the first year but the bits that work for a few years can be claimed over a few years. Honestly mate go to see an accountant and you will be surprised what you can claim for down to gas and electric which I would never of thought of. When speaking to my accountant I basically worked out the amount he would save me was at least double what I would pay for his services.

[macmac]

This is my understanding ( i'm no expert) from accountant
Equipment/tools = anything you would expect to last longer than 12 months
Consumables = anything you would expect to last less than 12 months

Consumables are 100% tax deductable in the current year

Equipment/tools are 50% first year then 25%  per year there after.

A tip-
Regardless of what me or anyone else thinks, or even your accountant, your tax liability is solely YOUR responsibility. If you get an IR investigation, they can legaly go back 6 years into all your accounts & the buck stops with YOU if they find anything wrong. This is when they can charge you interest on any amount owed to them + fines & so on. I'm told from an accountant that it is in their interest to find something wrong with your accounts.

tony

[colley614]

Honestly thats why I keep reiterating the accountant idea because I did a course when I started my business and they were telling us how a tax man walked into a guys house, asked for a receipt for something and when the guy couldn't find it the tax man basically took his coat off and said " Better get the kettle on!" and went right through everything.

[dave0123]

everything last for over a year basicly tho doesnt it? other than stamps and stuff.

I mean ladders do /sqeeguees/pouches/bucket on belt/ etc



dave

[macmac]

everything last for over a year basicly tho doesnt it? other than stamps and stuff.

I mean ladders do /sqeeguees/pouches/bucket on belt/ etc



dave

Yep, many things do, but there's rubber, dtergent, scrapers, etc.
To be honest, i think the term is "reasonably" that they use.
Ladders are a deffo equipment/tools!

tony

[colley614]

Now your asking for it macmac! Your gonna get but I have bought a wfp this year so I don't need ladders!

[dave0123]

so.. am i right in thinking..


if you spend 2000 on equipment like wfp etc you can only claim for 1000? so  turn over of say 10000  minus the 2000 would be 8 but because you only claim for 50% you would be taxed on the 9?(forgetting other expenses this just example).

dave

[macmac]

I have bought a wfp this year so I don't need ladders!   

  that's what you think

tony

[macmac]

so.. am i right in thinking..


if you spend 2000 on equipment like wfp etc you can only claim for 1000? so  turn over of say 10000  minus the 2000 would be 8 but because you only claim for 50% you would be taxed on the 9?(forgetting other expenses this just example).

dave

Yes, but resin, for example is a consumable so that would be 100%

tony

[colley614]

so.. am i right in thinking..


if you spend 2000 on equipment like wfp etc you can only claim for 1000? so  turn over of say 10000  minus the 2000 would be 8 but because you only claim for 50% you would be taxed on the 9?(forgetting other expenses this just example).

dave

dave now you do realize that its past mid night and I've been up since 6 this morning. My brain is far beyond counting at the moment! 

[dave0123]

thanks macmac..

hehe colley!! get 2 bed mate

i better go soon to gotta be at a doctors start at 8  early for me


dave

[macmac]

My advice would be to see an accountant
I'm not 100% on the percentages per year but pretty certain that equpment like your wfp gear is not 100% tax deductable in one year.

tony