A few simple self assessment questions...

[DrBass]

Hi there,

I wondered if someone would be so kind as to help me out with a few questions for self assessment. This is the first year I've had to do it and am a little lost with some things.

1. I bought the vehicle I use for work before I became self-employed but have made payments on it whilst being self-employed. Can I offset the tax for those payments made whilst self-employed?

2. If I use my vehicle 90% of the time for work purposes, does this mean I offset 90% of payments I've made towards fuel, repairs etc.? Or can I claim for the full amount of bills I've paid?

I've since learned I could have claimed for mileage but did not know this at the time so have no record of mileage.

3. Is it best to break down expenses or just do a lump sum? What are the advantages and disadvantages?

I was only self-employed for 6 months as was employed for first 6 months of the year and only turned over £5000, in addition to £9000 whilst employed. My earnings and costs are fairly simple, with only vehicle use being a cost so don't know if it's that important to break down my costs but don't want to do anything wrong.

Thanks

Neil

[pawncob]

1. Bought/lease/hire purchase? Depends on the type of payment.
Bought/HP. bring the vehicle inas an asset and HP as creditor. Charge HP interest element against profit.
Lease. Charge business proportion of lease payments.

2. Charge 100% of vehicle costs, but write back the private proportion in the computation (on the tax return)

3. Keep details of all expenses (including breakdown of estimated amounts)