Self employed - tax credits
richards8610
Posts: 6 Forumite
Hi, I've just become a taxi driver.
I work through a firm by way of using one of their cars but I decide my work patterns etc.
I am self employed, I pay the company a fee for using their car, and obviously fuel costs
As an example
150 takings in fares
35 fee for the car
15 fuel
Is my gross profit the 150...or is it 100? After the running costs have been taken off?
Thanks in advance.
I work through a firm by way of using one of their cars but I decide my work patterns etc.
I am self employed, I pay the company a fee for using their car, and obviously fuel costs
As an example
150 takings in fares
35 fee for the car
15 fuel
Is my gross profit the 150...or is it 100? After the running costs have been taken off?
Thanks in advance.
0
Comments
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In your example:
Your Sales (Revenue / Turnover) is £150
Your Expenses are £50
Your Gross Profit is (150-50) £100
https://www.gov.uk/guidance/tax-credits-working-out-income
https://www.ableskills.co.uk/blog/5-best-accounting-apps-self-employed/
http://www.investopedia.com/terms/g/grossprofit.asp?lgl=rira-baseline-vertical
http://www.superaccountant.co.uk/turnover-v-gross-profit-v-net-profit-what-does-it-all-mean/Alice Holt Forest situated some 4 miles south of Farnham forms the most northerly gateway to the South Downs National Park.0 -
Alice_Holt wrote: »In your example:
Your Income is £150
Your Expenses are £50
Your Profit is (150-50) £100
But in regards to gross profit...is it the 150 or the 100... because the tax credits have basically told me it's the 150...and I'm
Worried that they are doing me out of tax credits0 -
£150 is your turnover, £100 is your profit.
It's possible you could have capital allowances which turn your profit into a gross profit and you would deduct capital allowances to arrive at your net profit but I think that is unlikely to be relevant to you.
I fear you are confusing the tax credit people as much as they are confusing you!
Check out the tax credit renewal notes on gov.uk, they will explain what you need to report for tax credit purposes as far as your business is concerned.0 -
For tax credits, it's basically your net profit from you tax return. So establish what that figure will be and that's what you need to tell them.0
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Thanks everyone0
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