Tax rebate

[Spirits High]

Hi all,
As it's the Tax return time of year I was chatting to my accountant a couple of days ago and said this year i'd be getting a rebate cheque for £473!!

This is why I use a proper accountant and dont do things myself , he knows what he's doing so dont mind paying him.

Question is though, does anyone know when these "cheques" are sent out as it would be great in time for Christmas.

[Dragonfly]

I got mine last year in April .... end of financial year .... I also use an accountant.

[Vectis]

I had my accounts prepared by mid-April so the day the tax return hit the doormat I was online the same evening and it was all sorted out by the end of the month :)

[Vibrant Sounds]

I did mine myself, sent them in the last week of August, got a letter the first wek of Spetember stating all was correct and I would be getting a refund as my losses were beng offest against the earnings from my day job. I got a tax rebate from my day job's taxes for £733 paid by BACS within 3 days of geting the letter from the Tax office.

I expect about the same again next year as I have the Bose and Wizards to claim against as well as my other expenses/purchases, and 25% of my unclaimed deficit from this years purchases.

I love DJing, get paid by the client, get paid back by the Taxman and get to buy lots of boys toys.

[Vectis]

get paid back by the Taxman

Erm, not strictly true...

Whilst you can claim legitimate expenses (one of which is a capital expenditure writedown cost as you point out) these only reduce your overall income tax liability. You still had to spend money (your money, however earned) upfront to achieve that reduction :confused:

[Vibrant Sounds]

Erm, not strictly true...

Whilst you can claim legitimate expenses (one of which is a capital expenditure writedown cost as you point out) these only reduce your overall income tax liability. You still had to spend money (your money, however earned) upfront to achieve that reduction :confused:

True,

But how many other hobbies or pastimes do you get both a renumeration and a tax allowance against what you buy. I have a model railway up in the loft, probably spent thousands on it over the years, never got a bean back. I have a boat (cost £15,000) in the back garden plus hundreds of £s of fishing tackle to use on it, but never got an allowance from the taxman or earnt a penny from it.

I really enjoy my DJ'ing, to be perfectly honest, I would do gigs for free if I did not get paid for them. I average about 25-30 gigs a year and select only those I want to do, I do not do pubs, working mens clubs or marquees (unless powered by mains), if I do not like the attitude of the bride/groom/contact during their initial contact then I am suddenly busy on that date. I believe in having all the correct insurances and meeting the safety requirements, and most of all I take a great pride in the quality of my equipment and that I do everything possible to ensure my clients and their guests have a great time, but as I receive some renumeration for this I am entitled to claim the allowances that go along wih being 'legal' and taxman aware.

[rob1963]

But how many other hobbies or pastimes do you get both a renumeration and a tax allowance against what you buy?

Ah, but how many hobbies or pastimes do people get paid for in the first place?

Not many!

:)

[Vectis]

I really enjoy my DJ'ing, to be perfectly honest, I would do gigs for free if I did not get paid for them. I average about 25-30 gigs a year and select only those I want to do, I do not do pubs, working mens clubs or marquees (unless powered by mains), if I do not like the attitude of the bride/groom/contact during their initial contact then I am suddenly busy on that date. I believe in having all the correct insurances and meeting the safety requirements, and most of all I take a great pride in the quality of my equipment and that I do everything possible to ensure my clients and their guests have a great time, but as I receive some renumeration for this I am entitled to claim the allowances that go along wih being 'legal' and taxman aware.

Fair enough - I admire your stance! :cool: Just wish I could be so selective! Maybe one day... :D

[Solitaire Events Ltd]

Fair enough - I admire your stance! :cool: Just wish I could be so selective! Maybe one day... :D

And that would be the advantage of having another job I suppose.

[daz226]

I wonder where i stand as i am in full time employment on a good wage. I registered with the tax man in April for small earnings excemption but todate i have spent about £2000+ on equipment and olny yesterday i bought a new lap top for my dj work.

I know they said i could claim tax back from my main job for my expenses but as i dont do enough work to afford a accountant i was wondering if any of you guys could help.

Many Thanks

daz

[Vectis]

The annual tax return is a multipart form which all gets rolled into a single statement at the end.

You declare your "day job" in the 'employment' section and your disco in the 'self-employment' section. There are others for investments, pensions etc. The back pages roll the whole lot into one statement, so in essence, if your disco outgoings exceed your disco incomings then it's possible that any loss can be offset against tax paid elsewhere resulting in a refund.

Equipment that is classed as 'tools of the trade' is classed as fixed assets, not expenses, and you can't claim the whole value in year 1 (I think it's currently 40% year 1, 25% of the balance each year after that. So assuming a £1000 purchase, you can claim £400 as expenses in Y1, then (25% of £600 = £150) Y2, (25% of £450 = £112.5) Y3 etc.

True expenses, such as travel, advertising, music purchases, bulbs etc. can be claimed in full.

This is a incredibly simplistic summary - unless you are 100% clear then pay for an accountant. It's tax deductible after all and that way you will not fall foul of the rules.

[Tom]

True expenses, such as travel, advertising, music purchases, bulbs etc. can be claimed in full.



Correct me if im wrong. I can claim money from all the cd's, lamps and advertising (website) back, so really i havnt paid for them at all???

[Danno13]

NO.. "claim" in this context means you can take the cost of CDs etc. from your profit, so there is less to pay tax on.

[Vectis]

NO.. "claim" in this context means you can take the cost of CDs etc. from your profit, so there is less to pay tax on.

Correct.

Put it this way.

Suppose you're in Year 1 and my 40% figure for depreciation is correct.

You spend £1000 on gear and £1000 on 'expenses'.

You make £5000 from sales.

You can claim £400 for your gear's first year's depreciation and the full £1000 for expenses.

Your tax liability is therefore £5000 - £400 - £1000 = £3600.

You pay tax (& NI if applicable) on £3600 instead of £5000.

Supposing your tax & NI combined comes to 25% (just for an example)... your tax bill is £900.



Again, please note, VERY simplistic examples to illustrate a point.

[Tom]

i think i see what you mean. this looks like this is going to cost me a fortune. i think ill pay an accountant and see if i can get lower.

This is not looking good. :(

[Vectis]

i think i see what you mean. this looks like this is going to cost me a fortune. i think ill pay an accountant and see if i can get lower.

This is not looking good. :(

Best thing you've said all week :D

Seriously... it's money well spent. They'll be claiming for stuff you'd never have dreamed up in a thousand years of trying. :beer1:

[Tom]

Best thing you've said all week :D

Seriously... it's money well spent. They'll be claiming for stuff you'd never have dreamed up in a thousand years of trying. :beer1:

Thanks. :eek: ;) :D

Who would be the bets person to see. Shall i go to the bank or try to find an independant acountant?

[Vectis]

Google hit #1 for 'Accountant Medway' :

http://www.touchmedway.com/business/search/typeId/6/type/Accountants

If you know anyone that's self-employed, get a recommendation.

[Tom]

You didnt have to help.

Wow. Thanks for you help. :).