self employed/tax

Discussion in 'Carpenters' Talk' started by starlight tiles, Feb 8, 2007.

  1. audi-evo

    audi-evo Active Member

    you can buy new tools as you need them as long as you can justify them.
    I bought a £900 floor stripper for two jobs once.
    Ended up selling it on for £700 after jobs were finished.
     
  2. prince

    prince New Member

    Maz. If you need it for your business, then you need it, nothing they can do about it. Where they will come down on you, is if you are seen to be living beyond your means. So if there was just 2 of you in business and you had 4 vans, they may want to have a chat.

    I have done what Audi has done, bought something for one job, and then sold it on. My arguement would be, it went wrong, and was out of guarantee,
     
  3. yorkshireboy

    yorkshireboy Member

    Why is it living beyond your means drag me into your
    office whenever you like and you try and prove ive
    broken a law.


    You don,t want to say that to the the revenue Golden ,even in jest.;)
     
  4. starlight tiles

    starlight tiles New Member

    quite a few people are getting these jeeps/mitsubishi type now and fancy vans on this businees use.you never own the car/van its just on business lease.i think there about 600 a month.obviously this is down to tax isn't it.
     
  5. prince

    prince New Member

    Yep leasing is usually 100% tax deductable. I just dont like the thought of never owning it!
     
  6. starlight tiles

    starlight tiles New Member

    so obviously the leasing company,maintain it,tax it.
     
  7. prince

    prince New Member

  8. cosworth

    cosworth New Member

    i dont really understand the thinking on buying things for the sake of it just to reduce your tax bill.
    i work it out like this:
    spend £1000 and you may save yourself £300 on tax bill
    (22% tax and 8% class 4)
    so your still £700 down.
    granted you saved £300 on it if you need it but if not youve wasted £700.
    correct me if im wrong mind you cos maybe im missing something...
     
  9. cosworth

    cosworth New Member

    Ummm!
    looks like i killed that conversation.
     
  10. audi-evo

    audi-evo Active Member

    ok, if you buy a new van you have a new van!
     
  11. Guest

    i dont really understand the thinking on buying things for the sake of it just to reduce your tax bill.
    i work it out like this:
    spend £1000 and you may save yourself £300 on tax bill
    (22% tax and 8% class 4)
    so your still £700 down.
    granted you saved £300 on it if you need it but if not youve wasted £700.
    correct me if im wrong mind you cos maybe im missing something...


    100% correct ! Years ago when mobies first came out, bird phoned up trying to sell a contract phone they were expensive at first and all she kept saying was "it's tax deductable " I said to her " yea I know as is a lear jet and a bentley and i've none of those either" If It was that easy we would all be driving £80k range rovers
     

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