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  1. #1
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    Can I ask what expenses are considered allowable when you fill in your tax return.

    Advertising fees?
    Internet Connection?
    Computer Hardware?
    Web space / Domain names?

    What are the rules where these things are purchased from the US? Are they still deductable?

  2. #2
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    Quick answer - yes, all of those are legitimate expenses. It doesn't matter where you purchased them from.

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  3. #3
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    thanks markymark! that's all i needed to know.

  4. #4
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    hi

    i wanted some advice on tax etc.
    i am a housewife, full-time mother, and am now earning over £700.00 a month, and will probably earn more this year! as i have only just started earnign this money, i know i am ok for this year tax wise, but with the new year starting in april, i have no idea what to do, obviously i need to declare it! i just wanted some advice from others in a similiar situation.
    i do not claim any benefits or anything, so it will not affect that.

    Thanks
    Tamalyn

  5. #5
    Full Member garystarling's Avatar
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    You can also add something for electricity, gas, phone rental, software, subscription fees - magazines and so forth. Note you must be able to justify the expenses and that you can show it is used for the business. I have also claimed for our computers, books (computer manuals) and desk in the study. You have to be reasonable though as the tax man does select several business a year to go through the invoices.

    'I am not young enough to know everything.'
    - Oscar Wilde

  6. #6
    Full Member garystarling's Avatar
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    Tamalyn. Keep good records of your earnings and ALL expenses you incur in running this business. £8,400 a year is not a bad income so it will need some care and attention. I also got help from the government sponsored business link service Businesslinkkent there should be one in your area, they gave us a small grant when we set up the business.

    'I am not young enough to know everything.'
    - Oscar Wilde

  7. #7
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    thanks i will do that, i am getting a bit nervous now, as i never thought of it as a business, more like pocket money!!

  8. #8
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    Perhaps someone can confirm this, but I was led to believe that the expenses have to be EXCLUSIVELY for business use. IE if you also use your internet connection to play games and check the news, then you can't claim it as an expense.

  9. #9
    Full Member garystarling's Avatar
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    I think you are confusing being an employee and running a company / business. To claim as an employee for expenses you must be able to show exclusive use. For your own business you can claim for partial use so 50% telephone = 50% recovery. It would be iniquitous for me to use the phone for one private call and have all my telephone expenses disallowed.

    To quote from the Lloyds TSB business guide

    <BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR> You can claim, and be allowed, an item as a business expense for tax purposes if it is incurred 'wholly and exclusively' for the business'. The golden rule with expenses is that if you are in any doubt as to whether an expense is allowable, claim it.

    Allowable business exenses are not confined to those items used only for your business, as long as they are sometimes used wholly for the business. For example, you may be able to claim some of the expenses of running your home if you run your business from there.....etc.<HR></BLOCKQUOTE>

    'I am not young enough to know everything.'
    - Oscar Wilde

  10. #10
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    Hi

    Ok, I am now going to register myself as self employed. I am filling the form in and it wants to know when i started the business. i started my website in 2001, but did not start earnibg money till july 2002, and it was peanuts. in dec, i started earnign, and got a big payment at the end of jan from cj.com and a few more payments from other affiliate programs, Now i know that you are mean't to register within 3 months of starting, but i did not know i would be starting a businesss, if you know what i mean? so what do i do? put the date as dec 1st and hope i have got all my info, or what?

    I do not want to get into trouble, but do not want to lose money either

    also does everyone declare every payment they recieve?

    i have phoned my local business place, which helps, and have an appointment with a business advisor next week, but iam afraid i live in the sticks in wales, and they are not that hot on internet stuff etc. and noone i know actually understands what i am doing.

    i would appreciate any help

    Tamalyn

  11. #11
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    Welcome to self employment Tamalyn!

    I doubt the start date on the form is very important. The main thing is to make sure you hand over the correct amount of tax.

    I was in a similar situation, and was advised to use my equivalent of your Dec02 date. This was also the time I started turning my hobby into a business, which I think made a difference. The small amount of money I had received before that time also got thrown into my first years tax return. I don't know if I had to declare it, but for such a small amount of tax, why take the risk. Wait and see what you are advised at your meeting next week, which should clear things up. I dropped into the local inland revenue office when I was filling in my forms and they were very helpful.

    Don't worry that noone understands what you do. I was on the edge of London and noone understood their either! All I say now is that I make websites and earn referral commissions.

    Good luck with the forms!

    Riatsala.

    Legal disclaimer: I am not an accountant and you use the above at your own risk!

  12. #12
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    thanks for that,i am just getting worried about it for some reason.

  13. #13
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    It really isn't anything to worry about. Put the start date as the first date you received a commission cheque - that will keep things simple.

    The inland revenue are not out to get you but I would suggest an accountant is a good investment for this type of thing. Just hand it all over to them.

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  14. #14
    Full Member tmd5's Avatar
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    I agree with MarkyMark. Hand it all over to an accountant. I signed up with the people at just-tax.co.uk to use their self-assessment service. Just-Tax is an off-shoot of one of the big London accountancy companies. I found them very helpful especially David Haworth. They understand affiliate marketing since just-tax has an affiliate program with one of the UK networks. I found it best though, to described AM as "earning commission through internet marketing" when speaking to the tax office or National Insurance office. Just-tax sent an initial letter describing all the items I would need to collect and send to them with the tax form. They then completed the form, returned it to me for signature, and I got a £120 tax rebate for the 2001-2002 tax year. They gave excellent advice about the need to sign up to pay self-employed National Insurance contributions which I didn't know I needed to do since I was in full-time employment back then. I was overdue for signing up for these and received a £100 fine as a result (which Just-Tax warned might happen). However, on the advice of the NI office I wrote requesting an absolute waiver of contributions due to low earnings and the fine was withdrawn.

    I do basic single-entry book-keeping with the aid of an inexpensive software program called Simple Business Accounting downloaded from OwlSoftware.com. It's a US online company but the software is perfectly adaptable for the UK and so easy. I keep all receipts and a record of business income from each network and record them in the program using the cash account option. It produces neat reports. I'll definitely be using Just-Tax again for this tax year.

    Hope some of this helps.

    "Can I sell the sh*t and will the merchant pay?" ~ Leader

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