The laws of accountancy??

Pippie


Joined: 02/12/2009
Posts: 1288

Message Posted:
17/02/2010 14:42

I took all the receipts and fatura's in to my accountant today for them to prepare our first tax bill, to be told that all the receipts I have kept for car and petrol expenses and mobile phone credits cannot be claimed as expenses of the business - even though they are used solely for business purposes!



Can anyone explain to me in plain English why - in the UK, every time you do something for your business, it goes down as business expenses and can be used to claim VAT and charged against the tax bill. And, if you're working for a company, you claim your expenses back and your company then recharge those against their tax bill/VAT bills etc.



Or am I wrong - I just can't understand this one.



At this rate, we will be bankrupt before we've had chance to make a profit!

negativenick


Joined: 10/11/2008
Posts: 6023

Message Posted:
17/02/2010 14:45

or as my old Uncle Percy would say - "bonkers mate, bonkers"...

Grinderman


Joined: 11/08/2009
Posts: 33

Message Posted:
17/02/2010 17:45

Agreed, it's bonkers. I was told that if you want to claim motor expenses it has to be registered to the business, it can't be in you name.

Likewise, the phone, but that's more easily solved. Just go down to the Telsim (or Turkcell) office and ask them to change your phone chip from pay as you go to contract. And make sure you register it in the business name. And you will pay a good deal less for your phone calls as well.

Pippie


Joined: 02/12/2009
Posts: 1288

Message Posted:
18/02/2010 18:57

Thanks for the tip about the phone. I went in to Telsim today but they didn't tell me about the cost of the calls being cheaper - that's good to know.



Yes, I've been told the car rental contract has to be in the business name - no problem, it is, as is the fatura. Actually, today a friend of mine checked with his own accountant who laughed when we told him my accountant had argued we couldn't claim for it because it's a rental car!! Can you believe, I've had to get a friend to ring her to insist she puts it through and then if the tax office refuse it we'll just have to accept it. She wouldn't budge when we told her this. Gggrrrhhh.

This accountant friend also advised, to make sure when you get the fatura for the petrol, that the car reg. no. is written on it and then there shouldn't be a problem.



I think some of my frustrations for the moment are resolved but I think I might need to change accountant next year, I fear this one might cost me a fortune in tax!