| Reply : 8 May 2012 Just some additional comments to those already posted. You will receive a UTR - Unique Tax Payers Reference and also need to start paying class 2 national insurance unless an exception applies due to low profits. Also note that assumimg profits are high enough you could end up paying class 4 NI , as well as class 2 together with your class 1 in employment. But there are maximum contributions payable overall.Pre trading expenses are treated as a loss on the first day of trading and are simply treated as expenses in the basis period (Tax accounting period) you use. Using the tax year-end is not always the best tax planning option and is not compulsary.Simply keep a log of from-to, who you saw, and mileage and the taxman will normally be happy. Not that he'll ever see it unless you have an enquiry. The rate you claim is not for just fuel but for all your motor running expenses - services, tax, insurance, fuel, breakdown etc. Hence the 45p as mentioned already.Note however, that a turnover in excess of the VAT threshhold prohibits the use of mileage scheme and actual expenses should be claimed instead in total less and adjustment for private use normally done on reasonable percentage basis.Some things you may be able to claim forUse of home as office, landline business calls, mobile phone, print, post and advertising, B&B costs and meals while staying away. But entertaining is generally not tax deductible.Look up Annual Investment Allowances for 'depreciation' of any equipment (AIA)Consider the impact of any working tax credits you may be entitled to, and also if the business becomes really profitable setting up a limited company to shelter profits at a lower rate.Furthermore, if the business makes a loss then those losses may be carried back to previous employment income creating tax repayments, hence the reason AIA should be considered carefullyhope this helps
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