Tax Allowances

McKneff

Please look into NI payments as they are important for you to be able to claim any future beneftis and also they go towards your state pension.

I believe there are two levels of NI.

dori2o

I don't know why some posters have decided to attack the OP for asking a question which is asked quite a lot on the self assessment helpline.

This is OT but to be honest, this forum is getting to be somewhere to avoid rather than somewhere to ask for help based on the attitudes of some posters.

The OP was asking for help, not the third degree.

OP, any expenses you have will be offset against any income you bring in (turnover), this gives you your net profit which is what you are taxed on.

If this is below the personal tax allowance, then you won't pay any tax.

Anything over the allowance you pay tax on at the relevant rate(s).

If your expenses are more than your income you can carry the loss forwards or backwards to offset against other years incomes where tax was paid.

Either way, you can only claim a repayment from HMRC if tax has been paid on that money at source, or if you have made a mistake on an earlier years return and paid more than you needed to.

If you would like some help with tax and NI and understanding it a bit better, contact your local tax office and ask if they are running any training courses for new businesses. They may have some running which you can attend to gain some knowledge on what you can and cannot do.