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  • Reclaiming historic VAT vs capital allowance amount on self assessment

    Hi there, I wanted to clarify how claiming historic VAT repayments on my first VAT return interacts with claiming capital allowances on my self assessment.  Situation:  -I began my sole trader business in 21/22 tax year, and registered for VAT in Nov 22. My first VAT return is due 7th March 23 for period Nov 22-Jan 23.  - I have some historic VAT costs going back to Oct 21 that I believe I am eligible to claim back in my first VAT return - I am also simultaneously filling in my first self assessment form for the 21-22 tax year, and can claim capital allowances for the items that I paid VAT on historically and are still being used in my business As I understand it, I have 2 options: 1. If I use the higher (VAT inclusive) amount for capital allowance claims in my self assessment form (due by 31 Jan), then I won't be able to claim back historic VAT when I submit my first VAT claim (due 7th March) 2. If I use the lower (VAT excluded) amount for capital allowance claim in my self assessment form, then I would be able to claim back historic VAT when I submit my first VAT claim  Is this correct?
  • Class 4 NICs rate when Class 1 NICs also paid (both employed + self employed)

    Hi there I am filling out my self assessment tax return for 21/22. During this year i was both employed and self employed. I earnt around £71k from my PAYE employment and then a further £23k profits from self employment. My Class 4 NIC calculation for self employed income on my self assessment has been applied at 9% above the lower threshold. However, I thought that the Class 1 NICs paid in my employment would mean that the Class 4 rate on the additional self employment income would be charged at the lower rate of 2% rather than the higher rate at 9%. Is this correct and how would I go about getting it accurately applied on my self assessment calculation?  Thanks