Self Employed & Tax Credits

JustLetMeSleep · 13 January 2018 at 5:37PM

Hello
Can anyone help please?
Im self employed. When i tell the tax credits people how much my years earning are, do i include any proffit i have used to buy more stock with, or do i subtract that first?
Thank you as im confused!
Hugs to all xxx

marliepanda · 13 January 2018 at 5:50PM

JustLetMeSleep wrote: »

Hello
Can anyone help please?
Im self employed. When i tell the tax credits people how much my years earning are, do i include any proffit i have used to buy more stock with, or do i subtract that first?
Thank you as im confused!
Hugs to all xxx

I think you need to engage someone to help you with your books first as to what you can and can’t write off for tax purposes

jools1985 · 13 January 2018 at 6:57PM

Hi,

Sorry I'm a little confused by your question, but basically, you just have to tell them what your income is after you have taken off your business expenses. It will be the profit shown on your Self Assessment Tax Return.

A simple 3 line profit and loss account would show

Income - money the business has received

Expenditure - business expneses

Net profit - subtract expenses from income to get this figure.

JustLetMeSleep · 13 January 2018 at 11:07PM

Cant afford that im afraid. Im a tiny set up self ran.
My books are up to date, ive just been told conflicting info on whether my years total should ot should not include any proffit thats been used to buy more stock for the business.

JustLetMeSleep · 13 January 2018 at 11:10PM

Thanks.
My tax return is not due until Jan 2019.
My books show all the incomings & outgoings financially, its just ive been told conflicting info on whether the figure should or should not include proffit spent on new stock.
Thanks

JustLetMeSleep · 14 January 2018 at 11:19AM

I have the answer now...i can deduct stock costs. Thanks

Self Employed & Tax Credits

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