Part time self employed and a carer - capital expenses

Benefits, finances and funding
1

Hi,
As a carer and running a part time small business (low profit), I know i can claim some expenses against my profit. Can anyone point me to exactly what you can claim for?
What I am actually trying to find is the part about capital expenses, because I think i read somewhere that you can’t claim capital expanses UNLESS they are bought with some sort of loan (ie monthly payments to pay the item off)

This is completely unfair as a person who is rightly claiming carer benefit, and earning such a low figure as to comply with carer benefit rules, getting a ‘loan’ in the first place is highly unlikely to be possible.

Yet a small business really needs to occasionally purchase capital items for a small business to function. Not being about to take this off of the profit (unless ‘as above’ with a loan) really hurts the finances.

When filling out the normal self assessment tax returns, no such stipulation is made, anyone can claim back certain capital items regardless of how they were purchased, yet this ‘loan only’ stipulation is forced on a carer.

Any response appreciated, and a link to where it says this on the GOV site would be appreciated (ive lost it)

Thanks

2

Hi Si.

Best place to start … Low Income Tax Reform Group website … one of the best for CA related information :

https://www.litrg.org.uk/tax-guides/disabled-people-and-carers/caring-someone/tax-and-benefits-carers#toc-what-is-the-earnings-threshold-

For a definitive explanation of " Allowable expenses " , the Government’s own site :

Expenses if you're self-employed: Overview - GOV.UK

Bear in mind that not all expenses are recognised by both the TaxMan and DoleMan.

( Can be " Fun " under both the present system , and Universal Credit , if one’s earnings fluctuate … both above and below
the weekly earnings limit … from one week to the next … similar to local problems with zero hour contracts. )

That’s where any accountant will earn his / her monies … and not that many have a working knowledge of the benefit system.

3

Hi and thank you for the reply.
I read the info but unfortunately didn’t find the answer.

4

One for your accountant … how the DoleMan treats capital expenditure ?

Plenty out there on how the TaxMan treats capital expenditure , virtually nothing on the DoleMan.

5

Thanks Chris,

I think i will have to ask directly.

6

Your welcome.

7

Just go to HMRC website and look this up. We had a business, didn’t need any loans, but you can still claim for things. HMRC used to do a brilliant little booklet on the subject of what you can and cannot claim for, bound to be online now.
Is there a Business Advice service of any kind in your area? They might be able to help too.