Tax Return Help!

inn32

Hi

I am getting totally confused with my tax return. I am a sole trader. My turnover was 95K and expenses 86K I have also paid back 3K to an overdraft which i know is not allowable as an expense. This leaves according to my calculations 6K in cash which i have taken out of business. However when asked to input drawings the tax calculator seems to add this on to my net profit? What am I doing wrong, i don't have an exact amount of hoe much i have taken out as i thought it would be easier to work out at the end of the year. The 6k is about right though.

PlutoinCapricorn

My own figures are low, so |I just put totals in without the details. However, I remembered seeing a similar posting recently: perhaps this will be of some help.

http://forums.moneysavingexpert.com/showthread.html?t=2217583

CLAPTON

if indeed your turnover is 95k and your allowable expenses are 86k then your profit for tax purposes is 9k
how much you take out of the business is irrevelant

Debt_Free_Chick

inn32 wrote: »

Hi

I am getting totally confused with my tax return. I am a sole trader. My turnover was 95K and expenses 86K I have also paid back 3K to an overdraft which i know is not allowable as an expense. This leaves according to my calculations 6K in cash which i have taken out of business. However when asked to input drawings the tax calculator seems to add this on to my net profit? What am I doing wrong, i don't have an exact amount of hoe much i have taken out as i thought it would be easier to work out at the end of the year. The 6k is about right though.

As Clapton says, it looks like your profit is £9k

However, your drawings don't go anywhere in the expenses part of the return (boxes 16-45). The only place they go is on the Balance Sheet (box 97).

Your drawings are included in the income box, already, so they're already included in your profit.

inn32

hi thanks for your responses - just a quick note then why does it ask for your drawings on the non allowable expenses part of the form?

Thanks again