Upside Downturn

With all the fuss recently about MP’s expenses it’s easy to forget that there’s an angle here for us lot tightening our belts in the recession – don’t forget to claim for yourself!

For business owners that means getting proper invoices from all your suppliers and outsourced jobs. Detail all office expenditure and petty cash. Get yourself a good accountant. If he finds things to claim for that you haven’t thought of that’s probably a good start.

For the self-employed that means equipment, stationary, reference books, travel and subsistence. If you are working from home it also means a percentage of your mortgage interest, council tax, gas, electric, insurance and work done on the house that affects you. If you are in this position and not making an absoulte ton of money then you probably shouldn’t be paying any tax. Get yourself an accountant – their fee is tax-deductable as well!

For employees that means asking for petty cash for office items rather than dipping into your own pocket. Even if it’s a pint of milk for the kitchen. This soon mounts up and it costs your company nothing – they get it off their tax bill! A Barclaycard survey revealed that employees are missing out on an average of £373 a year. If they are being tight with things like this (or worse, imply that you’re being tight asking for it) it probably means that the forcast for the business isn’t that good. Plan your escape!

5 things not to claim for:

1. Moat cleaning (who knew there was a business in that!)
2. Horse manure (unless you are a gardener)
3. Chandeliers
4. Non-existent mortgages
5. Duck islands (unless it is the Duck’s secondary residence)

andy planning, strategy