Help with Sole Trader Accounts

Boris the Bold
Boris the Bold Registered Posts: 2 New contributor 🐸
Sorry but I need some help please. Although I am AAT qualified I work within the public sector and not use to dealing with 'normal' accounts, so I need to ask some silly questions. I've trawled through all sorts of websites and nothing seems very clear. I'm currently in the process of setting my husband up in his own business as an HGV Owner Driver. I have two parts to my question:

Firstly what, if any, normal household expenses can be charged to the business eg, rent, utilities, telephone, internet, life insurance, dental care, his car as he will need it to get from home to his operating centre. The office will be run from home.

Secondly, he'll have to be VAT registered, therefore, what everyday expenses can the VAT be recovered on eg childcare, any of the above etc.

Is there anything I haven't thought?????

Thanks in anticipation.


  • sdv
    sdv Registered Posts: 585 Epic contributor 🐘
    I am sorry to be a bearer of BOLD advise. But, in the long run you will find it is kind to be cruel.

    If you haven't done any bookkeeping before, I strongly suggest that you don't take this assignment on. If you do, then employ a professional to do your client's tax returns, and get some help, otherwise you are most likely to dig a hole for your self. And this will most probably end in tears

    You have a duty of care to your client. If you are not competent avoid taking on the assignment until you are competent to to the job.

    While some else is doing the tax returns, you could update your tax knowledge by re-doing personal and business tax modules.

    The query posted is the basic tax questions, which a client would expect his accountant to know.
  • Doug7
    Doug7 Registered Posts: 20 New contributor 🐸
    HGV owner sole trader accounts

    Go to HMRC online ,Self employed self assessment search ,allowable expenses ,in the tax return on-line
    I think you would be better engaging an accountant and ask for a fixed fee

    good luck
  • PGM
    PGM Registered Posts: 1,954 Beyond epic contributor 🧙‍♂️
    Possibly a good idea to do the accounts as planned, then pass the work to an experienced accountant to check over it?

    Would hopefully keep costs down as the preperation at least is done, and also a good learning exercise.
  • T.C.
    T.C. Registered, Tutor Posts: 1,448 Beyond epic contributor 🧙‍♂️
    I would suggest that you put all the paperwork together and pass it over to an experienced accountant to take out what cannot be claimed. This is the sort of advice I would give to a client carrying out their own book-keeping - "put everything in and I will sort it before the VAT Return and/or Tax Return.
  • Tiger
    Tiger Registered Posts: 63 Regular contributor ⭐
    How long ago did you do your AAT??

    Expenses that are wholly and exclusively for the purpose of the business can be answer your question household expenses/childcare would not be allowable against a HGV Drivers expenses
  • Gem7321
    Gem7321 Registered Posts: 1,438 Beyond epic contributor 🧙‍♂️
    Tiger wrote: »
    household expenses would not be allowable against a HGV Drivers expenses

    The OP said the office is run from home so an appropriate proportion of household expenses would be allowable.

    Agreed with what others have said, have an accountant review the accounts and prepare the tax return for you.
  • Tiger
    Tiger Registered Posts: 63 Regular contributor ⭐
    Yes they could add a use of home if they can justify it but i was speaking generally....and generally speaking they can't claim their household expenses and childcare as a legitimate business expense...

    Incidentally I completely agree that they should get an accountant to do the finer details!
  • Boris the Bold
    Boris the Bold Registered Posts: 2 New contributor 🐸
    Thanks everyone for your replies. It is a while since I qualified and I didn't do either tax element. Will do the accounts and get a qualified accountant to check over for me.

    Thanks again.
Privacy Policy