Self-Employment

[mr_cellophane]

If I were to become self employed and contract to one of the various larger companies who provide training for local councils, what could I claim against tax ?
Obviously at least one bicycle and the maintenance of it, but could I claim; general cycle clothes (obviously not full lycra gear), shoes, helmet, lights, a second bike, maintenance tools, etc ? and non-bike stuff; mobile phone, computer, internet, etc

 

[accountantpete]

Firstly - I would be very wary about going self-employed in connection with a company doing business with local government. There are big cut-backs coming.

The allowable business expenses will be things like travel and motor costs, a Use Of Home estimate to cover light & heat re your office at home, telephone and internet costs so far as they relate to the business etc.

Clothing is not normally an allowable expense but a proportion of your bike expenses can be claimed depending on how much it is used for business and how much is personal.

I should add that HMRC usually frown on "self-employed" positions which are in fact a tax saving device - you should make sure that the Revenue are happy with the situation.

 

[porteous]

You might think about forming yourself into a limited company and charging for your services. You can get the company set up for about £80 and there are definite tax advantages. I turn over about £6000 a year and it definitely works for me and my accountant.

( And I really don't care how much the tax man frowns, not since I heard a Treasury twit talking about "the permitted individual spending envelope". ie, our money is really their money, they just let us keep a bit).