self employed tax question

bargainhunter90

Hi I have a quick question.**** I also have a new question below

I have sent out my first invoice in jan 09 and get paid in feb 09 and create a different invoice for its receipt in feb 09 it happens the same every month with the contract I have with that client.

For the purposes of hmrc filling out the tax forms do i use the jan or the feb invoice?

I have a new question below

Caroline73_2

I don't understand what you are saying? Is it that you need to do another invoice in February or issue an receipt?

bargainhunter90

Yes I do another one as a receipt in a different format.

The main reason i'm asking is my invoice for the work I do in march will be sent out soon and will not be paid until april in the new tax year, so where will I be taxed for the work I'm doing this month in the current tax year or the next one?

ioscorpio

Jan, for tax purposes it's when the job is done rather than when you are paid for the job.

bargainhunter90

thanking you

bargainhunter90

I have another question

If I'm paid 1000 for my work and given 100 back from my client on top from expenses I incur. Do I just show the customs 1000 profit with no expenses as I'm reimbursed in full from my client?

Also if I'm not reimbursed from my client for say travel of 30.00 would that be able to be claimed through tax as an expense of the business?

I'm just making my estimate profit and loss info :think:

Possetjohn

Hi,

Assume you are self employed?

I would include everything as income, and all expenses as expenses. There is likely to be a time difference between you paying the expenses and your client reimbursing them. Anything not reimbursed (your example £30) will automatically count as an expense. Profit will be the same unless it goes over a tax year end.


It will also affect your turnover = VAT implications if you are below the threshold

bargainhunter90

Yes Im self employed

So I can claim my 100 pounds as a revenue expense even though my client reimburse's me in full too?

The 30 pounds can also be claimed as a revenue expense that I dont get reimbursed from my client?

EDIT: Think I worked it out :-

1130 Income
30 revenue expenses - Travel
100 revenue expense materials
1000 Profit

cash99

bargainhunter90 wrote: »

Yes Im self employed

So I can claim my 100 pounds as a revenue expense even though my client reimburse's me in full too?

The 30 pounds can also be claimed as a revenue expense that I dont get reimbursed from my client?

EDIT: Think I worked it out :-

1130 Income
30 revenue expenses - Travel
100 revenue expense materials
1000 Profit

If the £30 is not reimbursed your profit and loss will look like this.

Income 1100
Expenses 130
Profit 970