Sole trader profits

What expenses do sole traders get for vehicles if they claim flat rate expenses?

They get the statutory fuel allowance

What expenses do sole traders get for use of home if they claim flat rate expenses?

25-50 hours per month = £10 per month

51-100 hours per month - £18 per month

101 hours per month = £26 per month

What expenses do sole traders get for business premises used as home if they claim flat rate expenses?

calculate actual expenditure and adjust for private use based on the number of non-business occupants living on the premises.

if a sole trader wants to claim as much relief as poss for the capital cost of a van what should they do?

Not claim flat rate.

He will get a deduction based on the business % of the cost and running costs of the van.

when do you not need to notify HMRC of income?

when gross income does not exceed £1,000 in the year

Adjustment for running costs of private vehicle cash —> accruals basis

You need to add back the private use portion

Adjustment for purchase of new laptop cash —> accruals basis

Under accruals basis the purchase is capital. The full expense must be added back and then CA’s claimed.

Adjustment for printer cartridges cash —> accruals basis

it is an allowable revenue expense but the private use should be added back