I have no idea, but I *do* have quite a bit of experience of UK tax returns for a self-employed person in a less usual trade, and I can make a suggestion that worked for me: don't worry too much about finding rules that probably don't apply in your case. Make reasonable claims, ones that make sense to you and for which you can, if necessary, provide some sort of evidence. The chances are - though it can never be guaranteed - that the IR will not feel it worthwhile going into the details of your case for the sake of a few quid.
If you are declaring - and paying tax on - your gig earnings (jeez, that's honest of you!), you should be able to claim on all the expenses that you would not have incurred had you stayed at home.
There probably is a formula for travel expenses, as would apply to anyone who's work necessarily takes them away from their base, and you will need to find that out - my own experience was with work that kept me at home.
One other thing is this: if you are being reasonably cooperative with the IR, they will, in my experience, return the courtesy. So if you have claimed something that was sort of reasonable but that was in fact more than you should, they can always tell you and you can amend your return.
I also found they were very helpful when I rang with various questions - like I say, if you are being moderately cooperative and honest, they are likely to be quite happy about your case!
For what it's worth...
what?!!? got it right about some, particularly 'keep all your receipts', but mileage is generally at the inland Revenue's approved rates - 40p per mile for the first 10,000 miles in any one tax year and 25p per mile thereafter. It must be 'business' mileage though, ie related to some taxable income that you are also declaring.
If you didn't keep a record of all your mileage at the time, hopefully you do have a record/memory of where you went, and you can use something like the RAC route planner to get the mileage for you.
Hire an accountant and ask him to do your return properly - you can't afford not to.
If you really can't afford to pay for this every year then ask him/her to do it for one year and then at least you'll have a template of follow.
This is the best advice in a case like this.
I agree that a decent accountant is worth his weight in gold. They aren't all expensive if you shop around - perhaps this isn't the best time of year to do it, though!
Otherwise, I'd say BTooter has it about right. Next year, keep your receipts, though.
You are allowed to make reasonable estimates of things you don't have receipts for.
Ring them up and ask them - that'll scare them! But there isn't a standard rate because it all depends on circumstances. If you were driving a large van around full of PA gear etc you wouldn't be happy with the same rate that someone gets for nipping down the motorway in their Nissan Micra with their penny whistle in their pocket. You just have to keep all receipts including petrol (ask specifically for a receipt - a card slip doesn't usually give the VAT number or the amount of fuel bought). Keep all receipts, tally the mileage and work out a percentage. If you're properly professional you might need to claim capital allowance on vehicle purchase (and on instruments? - there's a question!) but that really is a job for a boring accountant.
"The chances are - though it can never be guaranteed - that the IR will not feel it worthwhile going into the details of your case for the sake of a few quid."
Join the MU for a start.
Their yearly handbook has a substantial section on what to claim for (as well as partnerships, contracts and a host of other matters).
If you are on tour and only get B&B, you can claim subsistence (around £35 a day, I think).
Once you get the knock from an investigation, you will start to use an accountant. I did.
If you are really stuck phone the IR helpline. They're generally pretty helpful. The number's on the front of the tax return. I've done my own tax return for the last 5 years too. Am thinking about farming it out to an accountant next time though... it's all just too stressful!Good luck
It's perhaps worth noting that you also get a writing down allowance relating to your equipment / instruments.
If for example, you work as a self employed musician and are working part time and earn say £4-£6000 a year and you declared the full amount, you would expect to pay something in the region of £1500-£2000 tax on that. It makes sense then to spend upwards £2000 a year on equipment. This keeps your writing down allowance up to off-set against tax .
Along with your other tax benefits, you could actually end up paying almost no tax on this amount.
Remember, an accountant can only submit what you decide to declare.
Yeah, sadly lots of it wrong eg 'there isn't a standard rate'. I'm an accountant. There is a standard rate for mileage. Unless you want to get into the slightly more complex area arising out of the question: 'Is the vehicle a business asset?' Also, yes you can get capital allowances on items of kit, including instruments, but you might want to look into how much tax that will actually save you.
For instance, if you spent £2,000 per year on equipment, in the first year you'd get a capital allowance of just £500 to set against taxable income, which would probably, depending on what your rate of tax is, save you about £95 in actual, real money - not a lot of saving for a £2,000 outlay, you might think.
If you want to get the Revenue to help next year, do it before September. You won't get them to calculate your tax for you at this time of year. And remember - they're pulling the deadline for submission forward for future years in any case, unless you file online.
I'm sure Benhall's right that there's a casual rate for occasional mileage, but I would suggest (humbly, in the presence of a real accountant) that if you keep a vehicle which you use, say, half and half for business and domestic purposes, you can claim 50% of the running costs. But you have to show that you're consistently making a profit, and not just a "hobbyist".
Further to PKev - encourage the kids to play/aquire instruments as well, then all strings, reeds, rosin, instruments etc. can go on the one tax bill (within reason)
UK tax returns
UK tax returns
don't you just love january?
could anybody advise me on the following -
is there a standard daily subsistence you can claim when on tour? (and does a weekend of gigs constitute a tour in respect of this?)
is there a standard mileage allowance for using your own car ie travel to rehearsals / recording / gigs?
i've been trawling round the web looking for answers, but if they're there, it's lost in the jargon.
thanks for any advice
# Posted on January 16th 2007 by saltybrian
Re: UK tax returns
I have no idea, but I *do* have quite a bit of experience of UK tax returns for a self-employed person in a less usual trade, and I can make a suggestion that worked for me: don't worry too much about finding rules that probably don't apply in your case. Make reasonable claims, ones that make sense to you and for which you can, if necessary, provide some sort of evidence. The chances are - though it can never be guaranteed - that the IR will not feel it worthwhile going into the details of your case for the sake of a few quid.
If you are declaring - and paying tax on - your gig earnings (jeez, that's honest of you!), you should be able to claim on all the expenses that you would not have incurred had you stayed at home.
There probably is a formula for travel expenses, as would apply to anyone who's work necessarily takes them away from their base, and you will need to find that out - my own experience was with work that kept me at home.
One other thing is this: if you are being reasonably cooperative with the IR, they will, in my experience, return the courtesy. So if you have claimed something that was sort of reasonable but that was in fact more than you should, they can always tell you and you can amend your return.
I also found they were very helpful when I rang with various questions - like I say, if you are being moderately cooperative and honest, they are likely to be quite happy about your case!
For what it's worth...
# Posted on January 16th 2007 by Alex Wilding
Re: UK tax returns
what?!!? got it right about some, particularly 'keep all your receipts', but mileage is generally at the inland Revenue's approved rates - 40p per mile for the first 10,000 miles in any one tax year and 25p per mile thereafter. It must be 'business' mileage though, ie related to some taxable income that you are also declaring.
If you didn't keep a record of all your mileage at the time, hopefully you do have a record/memory of where you went, and you can use something like the RAC route planner to get the mileage for you.
# Posted on January 16th 2007 by ethical blend
Re: UK tax returns
Hire an accountant and ask him to do your return properly - you can't afford not to.
If you really can't afford to pay for this every year then ask him/her to do it for one year and then at least you'll have a template of follow.
This is the best advice in a case like this.
# Posted on January 16th 2007 by Cuso
Re: UK tax returns
I agree that a decent accountant is worth his weight in gold. They aren't all expensive if you shop around - perhaps this isn't the best time of year to do it, though!
Otherwise, I'd say BTooter has it about right. Next year, keep your receipts, though.
You are allowed to make reasonable estimates of things you don't have receipts for.
# Posted on January 16th 2007 by kris
Re: UK tax returns
Ring them up and ask them - that'll scare them! But there isn't a standard rate because it all depends on circumstances. If you were driving a large van around full of PA gear etc you wouldn't be happy with the same rate that someone gets for nipping down the motorway in their Nissan Micra with their penny whistle in their pocket. You just have to keep all receipts including petrol (ask specifically for a receipt - a card slip doesn't usually give the VAT number or the amount of fuel bought). Keep all receipts, tally the mileage and work out a percentage. If you're properly professional you might need to claim capital allowance on vehicle purchase (and on instruments? - there's a question!) but that really is a job for a boring accountant.
# Posted on January 16th 2007 by RichardB
Re: UK tax returns
"The chances are - though it can never be guaranteed - that the IR will not feel it worthwhile going into the details of your case for the sake of a few quid."
Ha! Ha! Ha! Don't get me started!
Nurse! Nurse! Where are my pills?!!??
# Posted on January 16th 2007 by JerryH
Re: UK tax returns
just do a ken dodd
# Posted on January 16th 2007 by Ripthecalico
Re: UK tax returns
Join the MU for a start.
Their yearly handbook has a substantial section on what to claim for (as well as partnerships, contracts and a host of other matters).
If you are on tour and only get B&B, you can claim subsistence (around £35 a day, I think).
Once you get the knock from an investigation, you will start to use an accountant. I did.
# Posted on January 16th 2007 by geoffwright
Re: UK tax returns
I feel for you, Saltybrian. I have acquired a 6 foot x 4 foot dining table so I know that I have 24 square feet of accounts to do!! Depressing...
# Posted on January 16th 2007 by Mark Harmer
Re: UK tax returns
If you are really stuck phone the IR helpline. They're generally pretty helpful. The number's on the front of the tax return. I've done my own tax return for the last 5 years too. Am thinking about farming it out to an accountant next time though... it's all just too stressful!Good luck
# Posted on January 16th 2007 by oh fiddle it
Re: UK tax returns
.... famous last words, what?!?
# Posted on January 17th 2007 by Trevor Jennings
Re: UK tax returns
It's perhaps worth noting that you also get a writing down allowance relating to your equipment / instruments.
If for example, you work as a self employed musician and are working part time and earn say £4-£6000 a year and you declared the full amount, you would expect to pay something in the region of £1500-£2000 tax on that. It makes sense then to spend upwards £2000 a year on equipment. This keeps your writing down allowance up to off-set against tax .
Along with your other tax benefits, you could actually end up paying almost no tax on this amount.
Remember, an accountant can only submit what you decide to declare.
Hope this helps
Cheers
pkev
# Posted on January 17th 2007 by pkev
Re: UK tax returns
thanks for all advice
# Posted on January 17th 2007 by saltybrian
Re: UK tax returns
Yeah, sadly lots of it wrong eg 'there isn't a standard rate'. I'm an accountant. There is a standard rate for mileage. Unless you want to get into the slightly more complex area arising out of the question: 'Is the vehicle a business asset?' Also, yes you can get capital allowances on items of kit, including instruments, but you might want to look into how much tax that will actually save you.
For instance, if you spent £2,000 per year on equipment, in the first year you'd get a capital allowance of just £500 to set against taxable income, which would probably, depending on what your rate of tax is, save you about £95 in actual, real money - not a lot of saving for a £2,000 outlay, you might think.
If you want to get the Revenue to help next year, do it before September. You won't get them to calculate your tax for you at this time of year. And remember - they're pulling the deadline for submission forward for future years in any case, unless you file online.
# Posted on January 17th 2007 by ethical blend
Re: UK tax returns
I'm sure Benhall's right that there's a casual rate for occasional mileage, but I would suggest (humbly, in the presence of a real accountant) that if you keep a vehicle which you use, say, half and half for business and domestic purposes, you can claim 50% of the running costs. But you have to show that you're consistently making a profit, and not just a "hobbyist".
# Posted on January 17th 2007 by RichardB
Re: UK tax returns
Further to PKev - encourage the kids to play/aquire instruments as well, then all strings, reeds, rosin, instruments etc. can go on the one tax bill (within reason)
# Posted on January 17th 2007 by geoffwright