My boyfriend has completed his first fax return, he is self employed and has spent around £10,000 on expenses

Question

£7,000 of this being a new van, He has been advised to expect only abounr £600 tax rebate. Does this sound about right to anyone? Does anyone know roughly what percentage of your expenses you should get back?

Thanks

Answer 1

hey i hav recently become self employed it is very confusing. check out the hm revenue and customs web site it tells you on there  what items you can include in expenses such as petrol,you dont pay tax on these things some things cant be included in expenses check the web site. you usualy pay more tax in your first year as its an estimate to cover you for the year ahead.you will benifit from this the year after when your tax should go down

Answer 2

You cannot put capital purchases (new Vans) in a years expenses only their depreciation - eg if it cost £7,000 then he is allowed 5 years at £1,400 depreciation.

Expenses are very strictly controlled for tax and this may be the reason why . there is not enough information to comment on the figure of £600 as it depends on total income, tax code, amount and nature of expenses and nature of job.