Possible selling images on a commission basis

[Incredulum]

Your new camera would be subject to private use restriction, so you would not be able to offset it against tax.

I wonder... if instead you started in the current financial year - and you wouldn't have to SELL any photos, merely to have them for sale in this shop, and you bought a camera this FY and didn't use it for private use at all in the current FY, and claimed 100% AIA, then you could offset 100% of the cost against tax.

Go for it. Start now and buy a camera and file your first tax return. It's actually dead easy...

[samr]

It is my understanding that you will only be able to claim the cost of the camera in proportion to business usage. If the camera is exclusive for business then you may be able to offset it with your profits from your business and the tax paid in your employment or carry some of the debt to the next FY. However, I am unsure if the Inland Revenue would questions the purchase of something of that value for the amount of money you project to earn. Someone else may be able to address this.

If you intend to use the camera for personal usage too you will have to calculate the proportions of usage and only charge the business proportion to the business.

Regards

Sam

[Incredulum]

Sam. You haven't read what I have written.

Provided in the year in which the camera is purchased there is no private use, then a claim for 100% AIAs will mean that 100% tax relief is available on the capital sum.

By doing this just before the year end, it is much easier to avoid any private use element.

Best of all, this will give rise to a trading loss for the year of commencement which may be offset against any employment income if OP so desires.

[samr]

You are correct. I hadn't read your post. I didn't notice there was a second page before I posted. My apologies.

It's a most interesting way of dealing with things. Thanks for sharing that.

[dslr]

All very interesting reading, and thanks again for your time and input on this matter. When I purchase this new camera it will be just for business use, as I already own other camera body's for private use, although I will obviously have to use some of my private Lens and Kit to use with this new camera body.

I have also been given the name of a well recommended accountant who is very local to me, So I will be giving her a ring next week to find out what she can offer in advice alongside the information that you have all given me.

[Incredulum]

I am bemused...

You will be making between 100-500 a year from selling images; you are spending £1,500 on a camera; you are employing an accountant who will cost you hundreds...

You seem to have found a great way to lose money...

[dslr]

It is only a hobby, and with most hobby's (it costs money). I have no plans in making money from this venture, but do enjoy taking photographs which have been published in magazines plus it is a good feeling when someone actually buys one of my prints. But want I don't want is the taxman knocking on my door with a big tax bill, so I would much rather do things right. So with this in mind, do I need a accountant to check my figures or can I just use a simple spreadsheet showing what I have spent out (i.e. cost of printing and mounting of images and maybe equipment if allowed) against what money I have coming in (from sale of prints).

[Incredulum]

Well, the thing is...

I take it that you have employment income. Any losses from a trade may be offset against the employment income.

However, if you are not trading with a view to profit, losses are not available to offset/carry forward.