Category Archives: Uncategorized

Claiming tax relief on a computer

You can claim tax relief on equipment which you buy for your employment or self employment. A computer, printer, scanner and associated equipment falls into this category.

Step 1. Do you have a receipt? That is ideal but not essential. A payment entry on a bank statement or credit card will often suffice.

Step 2. You need to write down the reasons why you need the computer for work. There has to be some business use.

Step 3. Ideally you will then apportion the cost between business and private use. There was a time when this was probably 50/50 or more towards private use. However these days people tend to use mobiles or tablets for Facebook and photos so an estimate of between 80% and 90% might be reasonable.

A general link is here

More detailed ones are here














What is the best structure for your business

There are basically 3 possible structures:

1. Sole trader.
2. Partnerships including LLPs.
3.Limited companies.

The majority of people start off as a sole trader. There is less paperwork, legal costs are lower and it is a much easier regime to work within. However there are usually two main drawbacks

1. The tax regime can be more punitive for sole traders compared to that which applies to a limited company. There are fewer opportunities to delay the taxing of profits. In a nutshell a limited company allows you to build up profits within a company which have been taxed at a lower rate. When you come to sell the company the gains can, if planned well, also be taxed at a lower or non existant rate.

2.The word “limited” means that the your liability if things go wrong is restricted. This of course won’t apply if you have given a personal guarantee but it means that there is a way to place your personal assets outside the reach of any business creditors.

A limited company will bring additional obligations.Each year you have a set of accounts to file and an annual return to make. You also have a second tax return, not just your own but one for the company as well. These and many more points can add maybe a £1000 or more to the costs of your business.

A partnership is like a sole trader but with a partner. You share liabilities and are equally responsible for the business debts.