So was trying to save cost by buying second hand stuff to replace broken furniture and sometimes building works like painting, but while they are cheaper are we able to tax deduct it from our self assessment?
It might be a vague question and depends on something or do something on that cash so any suggestion welcome. I recall something like receipt but dunno the format, so I might as well to ask the public for the general thoughts.
Any suggestion on how to make it legit for tax reduciton helps!
My understanding is that you should be able to replace broken furniture with second hand as long as it is of a similar standard and you get a receipt it should be totally tax deductible.
If your replacement item is of a higher standard it could potentially be considered to be an improvement in which case it will be classed as a capital expense in which case you would claim against capital gains when the property is sold.
One of the guidance notes I read explaining what could be considered as a capital expense is if you replaced a wooden kitchen worktop with one of granite it could be considered for tax purposes as an improvement. Not sure how this would translate to furniture though…
If you pay cash for something you need to get a receipt. The receipt should state what the item is, the cost, any vat, date, full legal details of the seller inc vat number if reg. It should be like an invoice. Paying cash is absolutely not a crime! However - paying cash often means not getting an invoice/receipt because the seller is avoiding VAT. If you don’t have evidence of your payment then expenses when you paid cash is harder.
not exactly what I heard, VAT or not is a separate matter I think. People can write a receipt with out VAT invoice.
All of this is when it is checked by HMRC isn’t it?
Paying by cash is fine, and those expenses can be included in your self assessment along with any other format of payment……as long as you have a receipt!
That receipt need not be a VAT receipt, as your supplier might not be VAT registered.
i pay cash and do not always get a receipt. I also get paid in cash . Totally record it and my accountant always believes it as I record a good profit. Also some of my tenants pay cash
If you buy second hand and have no receipt , just write it down as cash paid on your own receipt. I buy secon hand tools as a builder and just enter it in my book
so this is assuming they are ok right? i.e. are there cases where HMRC check on you say this is not ok?
take pic print out and put price on it If they doubt you tell them they can see the item at xyz
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