ACCOUNTANT EXPLAINS: TOP 4 Tax Write Offs for Businesses (Pay Less Tax)
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- čas přidán 28. 05. 2024
- In this video, I talk through:
- What HMRC means by 'allowable expenses' (or tax deductible expenses)
- How sole traders and companies are taxed in the UK
- 4 everyday expenses that sole traders and companies can deduct against revenue to reduce their tax bill. I explain HMRC's rules on capital expenditure, capital allowances and more. I also tell you the rules for writing off the cost of an electric car i.e. a Tesla, against business income, and the benefit in kind rules.
TIMESTAMPS:
00:00 - Introduction
00:33 - What is a tax write off
01:55 - Capex
04:10 - Electric cars
06:16 - Working from home
08:40 - Miscellaneous expenses
WHO AM I:
I'm Kiran, a qualified Accountant and experienced tax professional living in the UK. I make videos about finance, tax and investing.
MY FILMING GEAR:
Camera - amzn.to/3FxPlad
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DISCLAIMER:
This content, and the ideas presented in it, are for education and entertainment purposes only. Kiran does not provide tax or investment advice. The information presented does not consider the financial circumstances of any investor, and therefore may not be suitable for all investors.
Although Kiran is an Accountant, no Accountant-Client relationship is established with the viewer in any way.
As an Amazon Associate I earn from qualifying purchases. The product links in the description are affiliate links. This means if you choose to buy something through one of these links, I may receive a commission on the sale, but it makes no difference to you as a buyer.
Thank you, helpful information, subscribed
Superb - subscribed
Great video. What about electric vans
Your information is clear and to the point as a result of your vast experience and knowledge. Now only thing left for me to do is start a business. :)
Don’t forget IR35 if you have some one work for you need a video on this please
Thank you
Thank you for watching!
thanks!
Thank you for watching!
Hi, do you provide tax planning advise to salaried Individuals please? If yes, please advise how can I get in touch. Thanks! Amanpreet Singh
Good Lord she has 10 years in accounting but looks like my 18 year old daughter!! Well done young lady as when you’re 50 you’ll look 30! 🤣👍
Hi Kiran, what about Hybrid cars with low CO2 emissions, how do you treat their purchase and BIK if you are LTD co.
Hi there, its the exact level of Co2 emissions that determine the level of deduction and BIK for the car. The rates are available on the HMRC website. Hope this helps!
Great video with clear explanations.
As a sole trader, could i purchase a garden office for business use and put that through as an expense? Approx £10k - £12k
Thanks again
As a food photographer when I shoot I need props (plates, napkins, spoons etc.) and food ingredients to prepare the food. How those would be classified? Bear in mind it can be a shoot for a job or a portfolio.
I would really appreciate your answer or a hint at which paragraphs I should be looking at.
Imo, what you’ve described are items specially required for you trade and so therefore deductible.
Hello, you can look at: www.gov.uk/expenses-if-youre-self-employed. Consider if your items were bought wholly and exclusively for the purposes of the trade, and whether they are revenue costs and are therefore charged to the profit and loss account
Make a CZcams page, buy food, review it, eat the food, claim the food as an expense
Thanks for your advice... I do buy to let and get SPV Mortgages.. can you do a program on ways we can save on tax please...
Noted, and thanks for watching!
Do you know if the £26/week can be paid as a lump sum, or does it have to be per week/month?
Hello, the £26 monthly deduction would be an expense in your tax return, which would lower your tax liability. This is how you realise the benefit, rather than a cash receipt. Hope this helps and thanks for watching
Hey Kiran, I’m interested in doing accounting, would you start with the Aca, aat or go to university for an accounting degree, thankyou
Hi there, you could qualify via an apprenticeship programme straight after school, or you could go straight into a training contract for the ACA after graduating University. Not necessary to study accounting at University in my experience. Good luck!
S =o hiring accountant as well
Electric car at 50k..
tax Deduction of 12.5k
Is there a similar VAT deduction of 20%, so another 10k?
I’ve been making a lot of losses trying to make profit trading. I thought trading on a demo account is just like trading the real market. Can anyone help me out or at least advise me on what to do?
I will advice you should stop trading on your own if you keep losing.
If you can, then get a professional to trade for you I think that way your assets are more secure.
I’d recommend Trisha Davis, her profit is great even when there’s a dip
Hey i'm shocked you just mentioned and recommended trisha davis, i thought i was the only one trading with her
you dont need to be shocked haha because i'm also a huge beneficiary of her
So if a £40k diesel van bought to transport goods in a limited co in feb24 will attract 100% capital allowance in 23/24 tax year? Resulting in £10k reduction to tax (assuming 25% corp tax rate).
You can claim the whole 40k back
Can you please show us the law where you have to pay tax please
Where it says you have to pay tax please
I've bought a £44k Tesla in Aug 23. I am paying this over 5 year finance via the Limited company. Are you saying I can claim the full £44k in the first year? What about the monthly finance payments?
Was it new and unused? What type of financing agreement are you using?
@@thechilternturbo1185 New. Hire Purchase.
Yes, and claim all the VAT back instantly.
@@Adam-ui3ot without knowing the answers to my questions you are unable to know if a full year 1 capital allowance is possible. Also, there is most likely to be a block on recovering the VAT so your advice is wrong.
@@thechilternturbo1185 just brought a 38000 vehicle on hp through my company. Claimed all the vat back.
What a 😍 woman!
Do you offer tax advice regarding BTL?
Hi there, unfortunately I don't offer tax services to individuals. Thanks for reaching out and best of luck with your BTL!
Yes you write off full cost of an electric car but will devalue faster then it charges lol
I need a accountant where abouts are you? Thank you
Hi there, unfortunately I don't provide accounting services to individuals. Thank you for watching!
Can I set up a pension through my Ltd company or a fund for when I retire
Yes you can. I have done this for the last seven years 👍🏼
@@grahamatwell5120 sound mate I'm gonna talk to my accountant about this
Yes.
312/year? Not worth our time is it?
Hi there, it doesn't actually take any time to claim that expense, just a line item in your records.
Just have it as automatic recurring weekly cost .
Amazing ... Subscriber now
Thank you!
Getting better you have to work on your background
Thank you for the feedback, suggestions welcome!
Background looks perfectly good to me, it’s the information I’m happy to get for free! :)
@@Mgd2335 maybe a nice plant 🪴 would make a difference
@KiranKaurFinance thank you for the guidance. Every bit of information and advice is greatly appreciated 😊
A plant in a nice pot, some books on both shelves, and maybe a small sculpture
Why is yt recommending me all these Indian girls what are accountants. And it seems like they all learned from Ali abdaal.
Obvious examples anyone will be aware of already
Hello gorgeous your 💥💥 😰👌. Dont forget to work on your background. 🙊 Somepeople need to get a life. 😂😂😂
If you want public services such as schools and NHS, pay your taxes like wage earners do!🤬
My kids go to a private school and I pay for private healthcare as the services in this country are a joke. I guess I shouldn’t pay taxes then?
The sheep are herded so they can be robbed by the criminals (butchers of your finances). You are educated by idiots who are educated by idiots. You are not trained in Law in this country, in school,Why?
Start learning Law and then you will stop acting like ignorant sheep who do as they’re told without question.
Without the businessman who is running a business and looking for the opportunities which enable them to employ workers and then pay the company “The UK government “ that which they insist they’re entitled to (which in Law they’re not?) we would all have nothing.
Think about all the BS surrounding C19 and how we were all treated. Then defend the government and their unlawful taxes the way you presently are.
All those that were running legitimate Ltd companies didn’t get a penny from the state during the Covid 19 crisis. An awful lot went out of business during that period and also went into debt to pay their employees. Some committed suicide and left us completely.
So please think on before pointing the ignorant finger at your direct employer who has given us a job.
Most work night and day to achieve it.
It needs to be encouraged not stamped out.
What a stupid comment.
@@adamsowa5927You should pay at least the same tax as everyone else. Then what you do with your own money is your own business.
The tax system is rigged with allowances that enable the rich to pay less tax and be subsidised by the poor. The UK has an inequitable tax system and we can see it in videos like this.
@@davidp4456 the 1% of earners pay around 30% of all income tax. I think the poor are being subsidised by the rich
Read - taxotopia, explains the in and outs about how the Rich avoid taxes
I am actually reading this at the moment!
If I buy a second hand electric vehicle. Will I get full tax relief on it . I paid £30k will the full 30 k come of the tax year . I’m a ltd trading company
Awesome! Thanks
Thank you for watching!