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Posted Thu, 06 Jun 2024 21:18:16 GMT by Jolinsay
Hi, I am planning to be self-employed as a on-demand delivery men in weekend / end of each week days due to I have a day time employed job. And I would like to purchase an EV to support this self-employed work. In order to utilise the 100% capital allowance, do I need to: - work at least 10 hours on self-employed job, to prove that it is not a hobby - only claim the portion that I use the EV in business, or 100% even with private journeys, - declare myself as self-employed before purchasing the EV, or if I immediate do self-employed work after getting the EV, would that be preferred - only work on this driver job, how about on providing other services / handmade goods (how about travelling expense on purchasing raw materials, delivering products to the customers for handmade goods) If my self-employment traded in low income / loss, can I still claim for the 100% capital allowance and set off against my employed income or rental income? Can I use partial of this capital allowance instead, and reserve some for the future years. I believe losses cannot be partially claimed. If I want to be self-employed under residential / commercial rent business, how may I justify myself on this, as I do believe rent a room scheme were treated as rental income but not self employed. If I do continue development by attending housing seminars, perform house viewings, and speak with tax planners and mortgage advisors, showing that I have contribute significant of times in this business, can I be self-employed even if I don't own a second home in the near future?
Posted Fri, 07 Jun 2024 12:04:00 GMT by Jolinsay
In addition, do I need to an established and successful self employed business before applying as a sole trader. Is there a requirement which I need to use business hire purchase or personal hire purchase would be fine to show that the EV was used as self employed business. Is a YouTuber treated as sole trader, YouTube have requirements to meet before getting income for views, would I need to pass those before applying as sole trader?
Posted Fri, 07 Jun 2024 13:22:56 GMT by HMRC Admin 13 Response
Hi,
No. 
If your turnover from self employment exceeds £1000, then you are required to register as self employed.  
You will need to keep business accounts, so that you can claim 100% capital allowance, where appropriate.  
You can register as a sole trader at:  
Become a sole trader: Register as a sole trader 
There is guidance at: 
Claim capital allowances: Overview on claiming capital. allowances and  
bookkeeping requirements at:  
Business records if you're self-employed: Overview 
From 6 April 2024, the 'cash basis' becomes the default method of keeping your business accounts.  You can opt to use the 'traditional method' instead.  
Have a look at the guidance at :
Cash basis: Overview
Thank you 
Posted Wed, 12 Jun 2024 08:32:36 GMT by HMRC Admin 19 Response
Hi,

You can see guidance here:

When you need to set up as a sole trader

For hire purchase, it can be a personal bank account that payments are made from but you also need to take into account any personal use when working out the expenses. Please refer to the links supplied previously.

Thank you.

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