What can I do regarding expenses...

Feb 5, 2011
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Hello everybody.

I have just come across this forum and thank good there is an accounting forum as I am in desperate need of advice.

I am running a small IT business from home and am registered as sole trader. I am VAT registered. Need to be as otherwise I could not get access to distributors.

The advice need it is the following;

Car petrol,
I use the car for personal and business as well. At the moment, I am only charging the business 1/3 of my fuel costs over every 3 months periods. I am thinking of having this changed to 2/3 as I am using it more for the business side rather than leisure.

Car servicing/repairs,
As I have to do quite more miles than I would have, if there was no business, the services are coming faster and there have been a few problems that requires car to go to garage.

I can I go about all these costs in relation to the business? If I have all these costs added to the business in terms of vat, there is quite a lot, around £300.00 alone and it is a small business as off yet, will I be committing fraud?
What I do not want is the HRMC coming knocking on my door for checking. Basically I do not want to do nothing wrong that can either put me or the business at risk.

Mobile phone/contract;
How can I go about with this one? Just allocate 2/3 of each invoice to the business? Allocate all of it to the business? I do use it for personal calls as well but most of them are business related.

I have not allocated any other expenses to the business like electricity, water, landline, as it is still a small business. I will have to look at these sometime later.

Any help is well appreciated.

Albert, C


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