business question regarding uk tax and vat

[gee252]

Just wondered if any on could help me out with a few querys
as iv'e not set up yet as a trading locksmith is there any way i can claim the tax back on my expenditure as i have spend quite a few quid on tools and the likes.
some ones told me it would be possible to claim some tax back on the tax i pay in the job i'm in now.
i've saved all the receipts from every thing i've purchased regarding set up cost of becoming a locksmith just wondered how long you have got to offset any set up cost against taxable earnings.
Sorry if these questions seem a bit unclear but i know very little about being self employed and the tax and vat implications.
P.S would i be better speaking to an accountant on these matters.
Regards, Gee

[haribo]

You can offset everything you have purchased for the business against your income, chances are you won't pay alot of tax first year. Have you got yourself an accountant as well worth it they can advise and also let you know what you are able to claim for things you wouldn't of thought of eg I use my office at home to run the business so i am able to claim for that.
If you intend to go VAT rated you can also claim all the VAT back on the bits you have bought. Ask for VAT receipts in future incase you do. All the best!

[toomush2drink]

One thing to look into when you do go "live" and that is to contact the inland revenue. I waited a few months and only because i got a bill for income tax through, when i spoke to them they quite firmly told me i should have told them straight away and that i could be investigated/ fined if things werent right. I apologised for my lack of knowledge to them and they chilled out a bit, im not sure if it a standard thing but something to look out for. Also they do a scheme where you can be madee expempt for the year if your project profits are less than a certain amount but not sure how that works. A good accountant is the key though as they are worth their weight in gold. My friend got landed with a huge tax bill last year ( 56k) for his business's. He couldnt believe it so paid for a good accountant who got the bill down to 18k, YES that much off !! The accountant explained they do try it on at the tax office and as so many people are intimidated by them they just pay up with out fighting it so be warned. The accountant cost him just over a grand so it was money well spent.

[jason]

You can also claim the cost of the accountants fees back as well!

[79commando]

When setting up as self employed you must register within three months of setting up or face a £100 bill. You can only claim tax back for tools bought after the business is set up. Even driving instructors fall foul of this. In short you must set up, pay for training, buy the tools etc in that order. Iknow it sounds stupid as you need all the gear before starting but the inland revenue take no prisoners. I almost fell foul myself, registered in Dec got my first job in Jan but had bought my van and tools in Nov. Spoke to the Inland Revenue and they said that as I was not trading prior to Dec tough luck. Luckily I had done a small business course in Oct during which they set up a free add with Yell, I claimed that I was therefore trading then and they relented but only due to the fact that I had advertised. They backdated my registration date due to my ignorance and I justslipped in. Lost out on my initial training money though.