Hi,
I was just wondering if anyone else has issues getting their head around tax returns or does everyone have an a accountant? My problem is what is classed as an allowable expense for a corsetry business. For example when purchasing a replacement iron or sewing machine is this classed as an allowable expense under repairs and renewals for property and equipment or claim as a capital allowance? Inaddition if I purchase new small tools to help make the job easier such as a double pin wheel, pressing bars as they are assets as I am not going to sell them, which area do they fall under. Any help would be really appreciated. Hope everyone is having a wonderful day

I would definitely recommend (if you can afford it) to go talk to a reputable tax accountant (best if you can find someone who works specifically with independent contractors). Especially for contract workers, tax law is pretty screwy. You don't have to go back every year, but if you make it clear that you want to understand what you can/can't claim and why, then you'll go forward with much better tools for doing your taxes in the future. They are also the most experienced at getting everything possible out of the system, so you'll probably wind up owing much less (or getting back much more) than you otherwise might have done.

You'll have sussed this now as we're past the date, but anyway... small tools I'd put under the repairs and renewals and consumables such as needles, pins and so on just grouped with your materials. A sewing machine would be from the capital allowance. At least that's what I was told. But then for a small turnover business you're only putting your total expenditure on your return so the categories are really for your own books. Check out the HMRC site or Business gateway, there's usually tax workshops on where they talk you through your return and answer questions. They are a help as you can get the info direct from the horse's mouth that way. I was amazed that they were more relaxed about some aspects than I'd expected.