Well… I rarely contribute these days but thought I’d put in my tuppence…
As a self-employed person:
– I can’t/don’t deal in cash, my customers are SMEs
– My partner works for a living
– I am a limited cost trader providing professional services
– I don’t wish to drive a van or ride a motorbike
There are no meaningful tax reduction avenues available to me.
Creative accounting is a myth – if you want to skirt the bounds of the law, that’s your call – but I couldn’t sleep at night
I get paid a slightly higher day rate to compensate for the lack of employee benefits.
I work for 30-40 companies on small projects over the course of a year, being PAYE is not an option.
I offset the following against Tax:
– Mileage (45/25p)
– Home working – £18/month
– Software licences
– Insurance
– Hotel accommodation (when working)
– 50% mobile phone costs
When I purchase a £1500 laptop (for example), I do so out of my own operating income, it isn’t free, I don’t pay £1500 less tax, It costs me £1500 less the tax I would have paid on £1500 profit (say £500). So, the ‘free’ laptop actually costs me circa £1000 from my take home pay.
In short, I pay just as much tax as anyone, commensurate with the conditions in which I work.
“I have a mate who has a mate who is paid in cash, pays his wife a wage and rides a Ducati to work….”
Blurting out this nonsense as ‘the norm’ doesn’t help anyone, it simply isn’t representative.