As it’s been nearly six months since my last Blog on some of the more interesting questions asked by clients and readers of the Blog, here’s my latest selection:
Can I claim for my iPhone?
I work from home undertaking online marketing, mainly for one company and I’m self-employed. The firm I subcontract to exclusively uses iPhones, Unfortunately, I’ve been experiencing a number of compatibility issues with my android phone and I’m now worried that I may lose my main client because of my old Nokia so I thought that I’d splurge out £900 on an iPhone to communicate better. Can I claim for it?
Answer: In principle the answer is yes, but it would be helpful to get a letter from your client regarding the compatibility issues, just in case!
Mileage costs v actual costs
I run motorcycle adventure courses both in the UK and abroad and have always claimed the 24p per mile rate to avoid the need to keep additional paperwork. I’ve been doing this for several years but my bike is now rather long in the tooth and needs more and more done to it by way of servicing & repairs etc. So, can I switch to an ‘actual’ cost basis rather than a mileage rate?
Answer: Unfortunately, once you start using the flat rates for a vehicle, you must continue to do so as long as you use that vehicle for your business. As you need a reliable vehicle to run your business and with your m/bike aging, I would consider changing it and you’ll be able to claim actual costs for the new one, including writing off its initial cost by way of capital allowances.
Sleeping with your accountant
This is rather embarrassing, but I’ve entered into a relationship with my accountant and I’m concerned that this will be frowned upon by HMRC, with the possibility that they could force me to choose between ending the relationship or appointing another accountant. What’s your professional opinion?
Answer: Under professional accounting standards, accountants must work within the law and in the best interests of their clients. I therefore cannot see how having a relationship with a client would be in conflict with that. Also, there is nothing in law to say that accountants cannot act for spouses/partners, so fear not.
Reimbursement of staff entertaining
I’m in a bit of a quandary and hope you can help. My four members of staff who all work independently of each other got together and played a round of golf at £120 per head. I’ve agreed to reimburse them and put it down as a team building activity. Can it be treated as a company expense and claimed back in the normal way or is there a potential tax scenario for either me or the employees?
Answer: Unfortunately for you it’s not an allowable expense. You have two choices; either pay any tax and NI yourself via a PSA with HMRC, or make the employees liable via payroll and the P11D; your choice.
Employing a foreign national
I run a small garage and our biggest customer has a small fleet of Chevrolet Spark cars made in Brazil. I’ve advertised multiple times to find a mechanic who has experience with these cars and have finally found one. He’s a Brazilian national, currently working in the UK with a visa employed by another UK employer but wants to work for me. I’ve called HMRC-Payroll and they’ve given me the runaround; can you help?
Answer: As you have tried and failed to fill your skilled vacancy, then you are potentially able to take on the Brazilian mechanic and I would suggest that you go to www.gov.uk/guidance/employing-someone-from-outside-the-uk which is actually very helpful and provides a number of worked examples. Best of luck!
