Self Employed Tax Advice

[anokdale]

So this year was the first year i am self-employed, all going well now due a visit to the accountant to present returns for 2010/2011, i have the normal things covered but when i emailed the accountant to ask if it would be beneficial changing my car before April 4th she has not answered me directly on the email, is this some sort of professional thing where she cannot answer that online or is it some other reason, we were planning on changing the car in April but i thought it would be best to do it now, any advice from the forum on this one or any other top tips to lessen the burden.

[Brian]

Depends how much "profit" you have made on the year. Pension contributions should also be considered.

Get your accountant on the phone and ask the question

Good luck

Brian

[aldfort]

Your question was to "open" for an accountant to be able to give a clear answer.

If you have a ltd company then the car belongs to the company and you get it as part of your remuneration package. This means it attracts BIK tax. Without knowing the make and model of the car your accountant can't possibly answer your question. Also would you plan to lease or to purchase?

If you are self employed as a sole trader there is still a problem in as much as the writing down allowances are different for different models of car this year AFAIK so again it's impossible to answer the question.

[london lad]

Depends how much "profit" you have made on the year. Pension contributions should also be considered.

Get your accountant on the phone and ask the question

Good luck

Brian

And never forget they work for you, not the other way round :wink:

[anokdale]

Guys thanks for the advice, i have been travelling all day but i appreciate your answers, i allways thought the face to face discussion was the best way forward, like a lot of things tax related no simple answer.

[Omegamanic]

If it's a company then buying before the end of the tax year or company year-end you can reduce the profits and increase the company's assets. This is offset for future tax with the benefit in kind that you pay for the use of the vehicle of course.

We have slightly different rules regarding tax to the UK but I review tax structures every week, very dry.

I am considering similar options right now myself but we have zero corporation tax so a little less of a concern timing wise - but still best to minimize profit (or tax payable) where you can.