Sold-Trader - Business expenses?

JohnCleary

As a sole trader, are you eligible to write off any business expenses against tax, or is all income taxable?

ie. Fuel used while going about your business

capefear

all expenses that are wholly, exclusively and necessary for the business can be deducted from your turnover which will leave you with your taxable income.

if your totally motor cost for the year come to 10K and you used the car for both personnal and business use, say personal use 75% of the use and business is 25% of use than you can deduct 2500 from your sales also.


HTH

JohnCleary

Many thanks. I sell intellectual property hence have no purchases on my side, however one expense that I do have is fuel for the car.

I will get in touch with my accountant to see if it's only fuel that is deductible, or whether insurance / tyres etc. can also be deducted

I will also confirm with my accountant, but regarding the % of how much I claim I use for business, I presume this is simply self-assessed?

The Corinthian

Talk to an accountant.

I've not freelanced in Ireland in perhaps six or so years, but back when I did, there was a lot you could put down as business expenses.

To begin with a portion of my rent was tax deductible as I had a home office. Internet and mobile bills were either partially or largely business expenses. Electricity too, in part, as it was ultimately powering my PC so I would work with it.

Eating out was an interesting one - many were counted as business expenses as they fell under the category of 'business development'. Computer equipment too. I was told I could put suits and haircuts down as business expenses too, but never bothered.

Trick is to know what you can claim expenses, then do so without tearing the arse out of it, and for that engaging a good accountant as an adviser is a good investment.

JohnCleary

Thanks very much for the info, much appreciated

barneystinson

The Corinthian wrote: »

Talk to an accountant.

I've not freelanced in Ireland in perhaps six or so years, but back when I did, there was a lot you could put down as business expenses.

To begin with a portion of my rent was tax deductible as I had a home office. Internet and mobile bills were either partially or largely business expenses. Electricity too, in part, as it was ultimately powering my PC so I would work with it.

Eating out was an interesting one - many were counted as business expenses as they fell under the category of 'business development'. Computer equipment too. I was told I could put suits and haircuts down as business expenses too, but never bothered.

Trick is to know what you can claim expenses, then do so without tearing the arse out of it, and for that engaging a good accountant as an adviser is a good investment.

You obviously weren't audited, or you'd have found out how dicey your expenses were!

The Corinthian

barneystinson wrote: »

You obviously weren't audited, or you'd have found out how dicey your expenses were!

How do you know how dicey my expenses were? Have you audited me?

As I said, these are various things that can be put down as business expenses and quite legitimately, in theory. However, the follow up point I made is that while in theory you can do so, you don't want to tear the arse out of it. That's why I suggested an accountant to advise the OP, not only because they will know what can be claimed, but also how much can be claimed before the Revenue will get upset about it.

Now things may be tighter nowadays, but I did preface everything by pointing out that this was my experience 6+ years ago.

barneystinson

The Corinthian wrote: »

How do you know how dicey my expenses were? Have you audited me?

As I said, these are various things that can be put down as business expenses and quite legitimately, in theory. However, the follow up point I made is that while in theory you can do so, you don't want to tear the arse out of it. That's why I suggested an accountant to advise the OP, not only because they will know what can be claimed, but also how much can be claimed before the Revenue will get upset about it.

Now things may be tighter nowadays, but I did preface everything by pointing out that this was my experience 6+ years ago.

I read your post, and they are not all things that can legitimately be put down as business expenses. "Tearing the arse out of it" doesn't come into it if its not an expense.

Would you like me to audit you?!

The Corinthian

barneystinson wrote: »

I read your post, and they are not all things that can legitimately be put down as business expenses. "Tearing the arse out of it" doesn't come into it if its not an expense.

What isn't? Genuine question, because - as I said - these were billed to me as legitimate (self-employed, bringing in my own clients, largely working from home) expenses by my accountant, back around 2004.

Would you like me to audit you?!

Moot point - not in Ireland

dbran

Hi

Seriously. Did your accountant tell you that you could claim "suits and haircuts" as a business expense. Was he in any way qualified?

Regards

dbran

The Corinthian

dbran wrote: »

Seriously. Did your accountant tell you that you could claim "suits and haircuts" as a business expense.

No, he did not tell me that, which is one of the reasons that I didn't bother doing so.