14

Unless UK tax law has some strange twist, your own labor always zeros itself out. Imagine that you actually paid yourself, and you could claim that expense as the cost of doing business. However, you would also now have new income (from your new client - yourself). The income amount is equal to the expense amount; the net is zero.


11

I would never allow this under any circumstance. The guy can sleep in his car... or the bus/train station for all I care. Even if I charged and he's willing to pay, invading my home is way over the line for any freelance client. It sends a message, whether direct or indirect, that you'll allow the client to overstep the boundaries of a client/freelancer ...


7

You don't have to receive wages to claim home office as a business expense, however, you do need to use the office exclusively for that business and not for personal purposes. For the US, see this summary from TurboTax for more detailed information. For the UK, as long as the office space has no other use for the time you are working you can deduct the ...


6

I am going to go over some basics of expense categorization with a UK flavor. The same applies generally elsewhere. Note that your second question, what can or cannot be claimed as deductions on taxes is something that is quite subject to change, and basically you can loosely follow accounting sites and talk with a tax accountant once a year to make sure. ...


5

It's probably reasonable for you to make a rough estimate of the percentage of business use for your home office and Internet. You could keep a diary for a week or a month, noting down your hours for personal and business use and then extrapolate these numbers for the whole year. There is no easy way for the tax department to check the actual percentages so ...


4

HMRC consider the City to be a single location. In fact, the rule is considered to apply where the journey to work is broadly the same. This rule is modified where the employee works at a succession of workplaces but the change of workplace has no substantial effect on the employee's journey to work. All such workplaces are treated as the same ...


4

I don't think I'm allowed to charge myself my hourly rate as an expense No! Well, not necessarily... if you run your business as a company, then you could bill the company for your time, but you would have to account for that personally; if you are (as tagged) self-employed then it is more clear - the payment would count as Drawings (ie post tax) would ...


4

Although I haven't run into this situation as a freelancer, I'd like to share my experience. If I was expected to be out of town for a "potential" client, they knew ahead of time that they would be paying for my travel. In my case, they bought the plane ticket for me (as opposed to a 10 hour drive), and paid for my hotel and 3 meals while I was there. This ...


4

This is something that is appropriate to negotiate with the employer if you feel it is necessary. Personally, I would figure out a fixed amount I needed to do the job NOT including travel expenses like airfare, meals, etc.. that should all be paid for by them anyway. If they do not offer a per diem, I WOULD include that in my fixed price estimate. ...


4

Software fees are the cost of doing business, thus overhead and not the responsibility of any client to pay for directly. I don't charge each of my clients for Photoshop/Illustrator/InDesign although I use them. I'd be angry if my plumber charged me for his wrench every time I called him for a job. Or my mechanic charged me for his timing gun when he had ...


3

I would never do that in general, for three reasons. If I really want to host a friend (who is really a good friend, not just some coworker) I would do that in name of our friendship, job or no job involved, so I would never ask money to my friend for staying a night at my house. It will create a pre-existing fact, so that every time the client will need a ...


3

In this sort of situation the client is waiting for you to assert yourself (and a good client won't be offended when you do). The question is how valuable is the work? If the work is potentially very valuable, and you judge that travelling to see the client would make the difference between getting the sale on not getting it, then you could offer to pay for ...


3

I think it's reasonable to continue to claim expenses for your home office even when you are temporarily away. There are likely resources in your office that are still in use even if you are not there physically every day such as storage space for filing, and books etc. Potentially you may have a server or desktop in the office that you can access remotely....


3

Although I have no web reference to back this up, I would still write off the part of my home used as an office. Remember, you may need to do paperwork back there as well, right? You aren't renting it out as a room to someone else, and it is required of your business. Just because you don't use the desktop computer at home for your business everyday, doesn'...


3

Generally, everything can be tax cost, or cannot be, depending on actual situation. So the list of things that can be cost would never exist. There could be only a particular cases for particular country. For example, washing machine would be a cost for agrotouristic company, would not be a cost for translator. How should you now if expense X can be cost? ...


2

Part (1) sounds like a request for practical help on organizing and collating expense receipts. I'm assuming you have a competent small-business-friendly accountant/service - if not, go find recommendations and get one quick (at least as a one-off till that gets you unstuck). That's probably a deductible expense btw. Obviously you want to figure out way in ...


2

If you are talking about selling your source code, then look at this question: https://softwareengineering.stackexchange.com/questions/206793/how-do-you-put-price-on-your-source-code If you are talking about selling the right to be the only user of the app (and later resell it himself) without selling your source code, then things getting more complex. Do ...


2

I believe you can. I used to work for a consultancy firm that, when travelling abroad, would allow us to expense all travel costs (flights, hotels, meals, etc.) against the company. So in a similar way, and as an employee, you could expense your costs against your limited company. There's loads of information on www.gov.uk about what you can or can't ...


2

I'm going to go with e) another approach Charge the rate you estimate will bring you the most profit. I think the best answer in your case is to use a 'payoff matrix' to help you decide Here's a very quick way about how it works and you an can use it to help set the most profitable prices. Let's assume you have 20 clients - run some estimates of what you ...


2

IRS requirements call for regular and exclusive usage of the office for your work, and generally allow percentage rooms, or percentage square feet. So, 1 room in 5 (20%), or 200 sq ft out of 1000 sq ft (20%). It sounds like you're not full time, so I would just declare a regular space you use exclusively for work and stick to it. It could be a small ...


2

Yes, the Freelancer can buy just the same as a private person, and later decide this is a business-expense. Recipient must be the Freelancer himself though, not a friend etc. The invoice has to fulfill all requirements of a regular invoice under German law, see here (German) The usual cash register-printout (Kassenzettel) does not suffice, at least not ...


2

I have a yearly software bill that I must pay to work. That fee gets counted as overhead when factoring project costs. These "books" would seemingly equate to similar "tools" required to complete your projects. This is how business is done. If you need "tools" to complete you work, whatever they may be - books, pencils, software, etc. - then those tools ...


2

It's not really a business decision - even though it may have business consequences. If the person is someone you normally would let stay for free - then let them stay for free. If not, then politely decline the request regardless of the money offered. This would clearly keep the arrangement in your private sphere - making it clear to the company that you ...


2

Your question is far too vague. I'm going to assume you're living in the US and operating under U.S. tax law and your question about "writing it off" is in reference to your federal taxes. You can either write the purchase value off as a business expense, or write off depreciation over several years. If you use the computer for any purposes other than work, ...


1

I would see this as a favour to the customer, and not charge for it, especially as this person is a friend. It does feel a bit petty. If it was a stranger I would not have offered, and refused if asked. If that is the same for you, then yes, it is petty as this is just a friend staying over. If he claims the expense you cannot really issue him an invoice to ...


1

1 You need two rates to give them. 1. We work with for out of office work on two per diem rates: 2. a) Working days at XXX per day 3. b) Travel days (all days from base to base excluding working days) at YYY per day. 4. This "b" rate above covers our costs or minimum income but also most importantly covers weekends away from base, where we have say a ...


1

As Scott has commented on your question, "home deductions" are pretty hard to claim if you have a "mixed use" area in your home. My experience in this area has evolved from part-time freelance to starting a full time operation, but all of it still resides within my home. My accountant has had me create dedicated Quickbooks accounts (you can use ...


1

I have to admit that I'm in a very similar boat to you and am still fighting to gain control over the receipts. One service that I have signed up to that has been invaluable in this regard is Receipt Bank. They actually go as far as scanning and categorising all your receipts for you so that you don't have to go through all of that yourself. They simply send ...


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