Q. I am self-employed personal trainer. I pay rent to various local gyms where I train my clients, supply my own uniform and make my own appointments. I have to look the part to get work, so I take body-building supplements. Can I claim the cost of those supplements as a business expense?

A. The supplements are a form of food, and as such it has a dual purpose; to keep you healthy and prepare you to undertake your work. So it is very unlikely that the Taxman would agree that your body-building supplements are tax allowable

Q. Is it true that my company can purchase a top-end touring bike plus safety gear, for me to use without any restrictions?

A. There are restrictions. For you to receive tax and NI free use of the bike your company must offer the use of bikes to all its employees, but the same quality of bike does not have to be offered to every employee. The bikes should be used mainly for work related journeys, such as getting to work, or travelling between different work sites, but personal use is not prohibited. Safety equipment can be provided by the company with the bikes. However, remember the bikes must remain the property of the company, or be leased directly by the company. There are tax implications if the company gives you the bike outright.

Q. I have decided to become VAT registered. Can I claim the VAT back on the van I bought two years ago, which I still use for my business?

A. You can reclaim VAT on goods and services purchased before VAT registration, but there are different time limits for goods as opposed to services. The VAT paid on goods held at the date of VAT registration can be reclaimed if they were purchased within four years before the registration date. VAT on services can only be reclaimed if the services were supplied for the on-going business with 6 months before the VAT registration. The van is classed as goods, so you can reclaim the VAT on purchase.

Q. I am employed by my company M Ltd, and my wife's company T Ltd. M and T have completely separate trades and operate independently. I currently take no salary from M Ltd and have a modest salary from T Ltd. However, HMRC have split my personal allowance 2/3 to the PAYE code issue to M Ltd and 1/3 to T Ltd. Can I get this changed, and if so how?

A. All you need to do is ring HMRC on the number shown on your PAYE code notice and ask them to change your PAYE codes. You will need to have your NI number to hand, and estimates as well as the expected level of dividends, interest or other income to be received in 2013/14.

Q. I've heard about the great tax breaks available under the SEIS scheme. Is this something I can use for my business?

A. The seed enterprise investment scheme (SEIS) provides investors in small companies with 50% income tax relief, and an exemption from tax for 50% of the gains they reinvest in SEIS shares (for 2013/14). However, you can't use SEIS to invest in a company you control, as the investor and his associates (basically close relatives), must not own more than 30% of the company. The trade undertaken by the company must also be less than two years old, so to use SEIS the company has to be undertaking a new venture, and be a new clean company.


If you have an idea for a new business and you are willing to involve other investors, you may be able to use SEIS to fund that business. But please talk to us first, as there are a number of trades that can't use SEIS, and other conditions to meet.

Q. My company has been trading since 1 March 2013, but my first sales invoices haven't been paid yet, so there is no cash available to reimburse me for the expenses I've incurred personally. Do I have to complete a P11D for 2012/13?

A. The annual form P11D reports expenses reimbursed to, and benefits in kind made available to the employees and directors. As you haven't been paid any expenses by the company, there is nothing to report on the form P11D. If you have any benefits in kind provided by the company such as a car a P11D would be required.