Is it earnings or profit for small business?

DeeDeeinDooDoo

Hi,

Trying to complete tax return for OH who has started working as a self employed plumber for last three years.

I keep a record of the cash that comes in and he incurrs some expenses, diesel etc.

Do I simply take cash income - expenses = income OR should I be calling this profit?

Also trying to inform Working Tax Credit about our 'income' in order to get much needed credit off them. We have been living off savings for a couple of years.

First year he made a loss, so any gain this year will be written off against that BUT do WFTCredit people want the actual 'income'/'profit' before taking previous year's loss into account?

Hope that is clear? And that someone can help. Thanks.

fengirl_2

Income less expenses is profit. This is the figure he pays tax on and the figure which tax credits are interested in.

DeeDeeinDooDoo

Hi Fengirl

Thank you for that. I'm slowly getting through it. Have at least been able to phone in figure to WFTC. :j