WHAT DOES TAX DEDUCTIBLE ACTUALLY MEAN?

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Wondering what ‘tax deductible actually means? Well watch on.
Dan runs through this topic here.
Topics include:
Tax deductible explained
Tax deductible expenses UK
Corporation tax rate
Tax deductible salary
Tax deduction example
Corporation Tax example
Corporation Tax calculation example
Tax relief explained UK
Tax relief explained limited company
Tax relief explained self employed
… and more!
If you have any questions on this, please comment below.
You can see more about what we get up to as an Accountancy Business on the following:
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Podcast on Spotify and Apple: “The HeelanHub Podcast” - a show for small business owners.
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#accounting #smallbusinessuk #tax

Опубликовано:

15 сен 2024

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Комментарии : 34

@jackdavis9445 11 месяцев назад

Can you do a video on Tax deductible Charitable Donations - 100% tax deductible is used when talking about charity donations, when does that come in to play?

@HeelanAssociates 10 месяцев назад

Will add to the list!

@jaybrown8411 Год назад

Hey have you done a video on what a taxi driver is able to claim at all in regards to expenses

@HeelanAssociates Год назад

We have specifically but this may help SELF-EMPLOYED MOTOR EXPENSES EXPLAINED! ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-PPnzNvLp3k8.html the trickiest bit with taxi drivers is the car itself SELF-EMPLOYED EXPENSE BASICS - WHAT CAN YOU CLAIM? ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-iBWR3vrxgow.html

@leeskinner1296 8 месяцев назад

Thanks very clear explanation

@HeelanAssociates 8 месяцев назад

Glad it was helpful!

@christopher4045 2 года назад

Great video - I'm just starting out so very very helpful! Can I ask - does mileage count the same as expenses i.e. tax deductible? E.g. if I claim 1000 miles @ 45p per mile (= £450) does this figure become deductible from my profits, or am I £450 up at the end of the tax year?? Thank you!

@HeelanAssociates Год назад

It’s kinda both depending on your situation. Example if you are in a ltd company you’d save 19% of £450 (~£85£) from your tax bill, but also company owes you £450 back presuming you used your funds.

@katdee7176 Год назад

Hi. I'm a sole trader, who has gone over the £1000 earnings threshold. Am I right in thinking my deductibles need to add up to over £1000 to make it worth claiming for them, i.e. because if not I can claim the tax free allowance on my first £1000 of self-employed earnings instead?

@HeelanAssociates Год назад

In general yes!

@mo_bhana6987 Год назад

hey i have a question, for example i make my own ltd company, however the business is a small online store. most my income is from my 9-5 job. and with the money i earn from my 9-5 i buy a desk and a laptop for my business and i buy courses and actually start selling things online however its not much. with that desk and laptop as an expense would i be able to claim i made a loss and then be able to claim back the tax i was charged on my 9-5 job? (not sure if this makes full sense but any help would be very appreciated)

@HeelanAssociates Год назад

Losses in a LTD can’t be offset against personal income. It’s often possible if you are a sole trader to this however.

@MR_Money_Bags Месяц назад

i've been searching for this!

@HeelanAssociates Месяц назад

Glad to be of help!

@macflod 7 месяцев назад

Can i ask a question. Say i want to build up money in my ltd to make a bigger purchase of Equipment for use in my ltd. Say equipment costs 20k but i cannot quite afford on 1 years worth of profit. If i have £10k in profit in my ltd coming to year end this is going to get reduced by 19% at year end by corporation tax. Can i purchase 10k in gold coins as investment to reduce my profit? (As far as i can tell gold coins have a tax free status) Then, Say i sold these coins the following year at exact amount i paid to buy them to release the money. So i have £10k from coins and by year end i have another £10k from the second years profit, and I make the 20k purchase before the second year end. Would this situation spare me from having to pay corporation tax? And Basically allow me to build up some money in the ltd without being taxed on it?

@HeelanAssociates 7 месяцев назад

The gold coins wont reduce your profit sadly. If you make an investment they will sit on your balance sheet, away from your profit and loss which effectively determines profit.

@macflod 7 месяцев назад

@@HeelanAssociates thanks for the response. So there is no way to save profit from being taxed into the following year. 😕 Maybe i need to negotiate with suppliers a payment deal where i can pay it over 2 years someway 🤔

@markhodgson4162 2 года назад

Am i correct in thinking that by reducing your corporation tax via expenses etc would also reduce the profit that you can take dividends from? As a small start up side business it would be solely dividends to pay us but are we not also reducing the ‘pot’ that we can take from? Any help appreciated

@HeelanAssociates Год назад

Hi Mark that’s correct in simple example, reduced profits is reduced availability for dividends. Logically makes sense as in a simple example it’s because you be reducing the cash available by buying the thing that gave the tax deduction.

@Axelrun1994 Год назад

Can I deduct expenses I've made for the company before the LLC was established? I hope I'm explaining it right. Essentially I'd open a company after the business model takes off. If I'd want to make a first profit before going to companies house (because if the business model doesn't work why open the company?) but I bought office supplies and equipment before any of that takes place, can I still write them off?

@HeelanAssociates Год назад

With limited companies you really want to form/incorporate first before incurring significant expenditure to be really ok/clean, but similar principles to this video exist.

@Axelrun1994 Год назад

@@HeelanAssociates thank you for the advice

@nathan6899 Год назад

Brilliant. Thank you 👌🏾

@HeelanAssociates Год назад

Glad you enjoyed Nathan!

@EducatingDad 8 месяцев назад

Hi Dan, just came across this video as im in a position where Im now a business owner of a ltd company and id like to make use of the current government incentive where they have electric cars being 100% tax deductable Just so that I'm understanding this correctly, if my net profits are, say, 50k for the year and the car costs 50k, while being 100% tax deducatble, would that wipe out any corporation tax id have to pay at rhe end of the year? In that scenario, i can understand the short term situstiom is that im having to either buy the car outright or pay monthly payments until my end of year, but it would appear that the car, in the long term in that scenario is essentially free? Im asking as it seems too good to be true, and usually when thats the case.it probably is! Thanks in advance!

@HeelanAssociates 8 месяцев назад

So you are correct in that if car wiped out your profits by being qualifying enough to be 100% deductible in year one (say £50k profit, £50k car cost), you would pay no corp tax that year. But your tax bill would have been around 9.5k (19% of profit), so you’ve spent £50k to save £9.5k.