As an ice cream business am I correct in thinking we would claim the cost of the ice cream van against profits as an Annual Investment Allowance in full in year 1? Or should it be depreciated over time (my limited understanding is that HMRC will ignore depreciation when calculating tax)? Grateful for any clarity you can provide. These videos are excellent btw.
Thanks for the informative video. I have a question. If you are a full-time employee and earn let's say £20 000. And you want to start a photography business on the sides just part-time, you need to buy all the equipment in the beginning. So let's say you spend £4 000 on this equipment. What if in the first year you don't make any money? Are you able to close a year in minus? Or if the next year you earn some can you roll over that £4 000 expenses? Thank you :)
Yes and it’s not unusual. In fact I think every photography business we’ve had as a client ends in a tax loss in year one! Totally fine to make a loss. You can carry losses forward for tax purposes, or actually if you are a sole trader you can do some cool stuff with losses with the tax you paid in your main job.
If you get towards the end of the financial year and you bought a lot of stock (for future sales) do these purchases count against profitability or are they just added to your balance sheet? Thanks
Very helpful :) For self employed do you need to upload receipts of all your expenses (equipment bought etc) or just the invoices for any sales you made? Thanks
Thank you so much! this has been very helpful to me get the basics of SPL. I find it more easier to study my Final Accounts Preparations!
Glad it was helpful!
As an ice cream business am I correct in thinking we would claim the cost of the ice cream van against profits as an Annual Investment Allowance in full in year 1? Or should it be depreciated over time (my limited understanding is that HMRC will ignore depreciation when calculating tax)? Grateful for any clarity you can provide. These videos are excellent btw.
Sorry we missed this one! This may help HOW MUCH TAX CAN YOU CLAIM BACK ON A VAN? SELF-EMPLOYED SPECIAL
ruclips.net/video/DlfpBCtbO10/видео.html
Thanks for the informative video. I have a question. If you are a full-time employee and earn let's say £20 000. And you want to start a photography business on the sides just part-time, you need to buy all the equipment in the beginning. So let's say you spend £4 000 on this equipment. What if in the first year you don't make any money? Are you able to close a year in minus? Or if the next year you earn some can you roll over that £4 000 expenses? Thank you :)
Yes and it’s not unusual. In fact I think every photography business we’ve had as a client ends in a tax loss in year one!
Totally fine to make a loss. You can carry losses forward for tax purposes, or actually if you are a sole trader you can do some cool stuff with losses with the tax you paid in your main job.
Love this. Thank You
Glad you found it useful!
Most informative and well explained video on line. 👊🏻👊🏻
This is very helpful
Glad it helped!
If you get towards the end of the financial year and you bought a lot of stock (for future sales) do these purchases count against profitability or are they just added to your balance sheet? Thanks
If you haven’t sold them sit on your balance sheet, have a watch of this one ruclips.net/video/meiBmOjQh0k/видео.html
@@HeelanAssociates thank you 🙂
Great vid! Quick question, for sales, I presume that is sales excluding VAT?
Yes, VAT is ignored by default in accounting -reporting (UK). Glad you enjoyed vid.
Very helpful :) For self employed do you need to upload receipts of all your expenses (equipment bought etc) or just the invoices for any sales you made? Thanks
It’s mainly for if they tax people need to see proof. You should keep both expenses and any invoices
cool
🎉