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At the beginning of the process when it's section 3. "tailor your return" and it's asking lots of questions to set up what questions you need to complete there is the option to select putting your allowable expenses as one lump sum total of allowable expenses rather than listing out categories separately.
If your turnover is less than £85,000, then basically you only need to do three line accounting. So you don’t need to fill in all those separate categories, you simply skip to the simpler form section.
Of course, if your turnover is greater than that, then you are back to your question.
Our new tool purchases get submitted under the heading of: Repairs and RENEWALS of property and equipment
First it would be good to be clear whether you are operating cash accounting or traditional accounting on an accrual basis.
New tools above a certain value may need to be treated as capital rather than revenue expenditure, and accounted for using Annual Investment or Capital Allowances.
If you are a limited company you may qualify for a Super Deduction on new plant and machinery.
Hi Shelley,
It's nearly a month since you posted your original question and my reply may be too late.
I am in a similar position to you, having set up as a self-employed Gardener in May 2020. I've never been self-employed before, have never kept accounts and have never filled in a HMRC Self-Assessment either! It's also probably too late to appoint an accountant so I've decided to do my own Accounts and Tax return. As you can imagine I've spent a LOT of time researching this stuff in the last month or so. :(
The following is therefore just what I think I've understood. :-)
The three categories you mention are boxes 11, 15 and 19 of HMRC's Self Assessment Short form SA103S (or boxes 17, 22 and 30 if you've decided to use the Full version, SA103F).
If you look on the HMRS website there are Notes on how to complete SA103S and SA103F. Here's the notes for SA103S:-
https://assets.publishing.service.gov.uk/government/uploads/system/...
If you go to Page 5 of the Notes it says:; "If your annual turnover was below £85,000, you may just put your total expenses in box 20."
Box 20 is "Total Allowable Expenses". So, it looks like they don't require you to break down you expenses in to the different categories IF your turnover is less than £85k. Just add 'em all up and stick the total in box 20.
Just one other point: I *think* you're only allowed to claim for capital equipment (ie Gardening Tools) in the "Allowable Business Expenses" section if you've decide to use Cash Basis accounting, as opposed to Accrual Accounting. You specify that choice by putting a 'X' in box 8.
I'm happy to stand corrected if someone knows better.
I hope this helps!
Andy.