What if more than tax bill?

CLAPTON

ginge1 wrote: »

Hi there I have a similar question ive earned around 20k so owe 4k in tax, but have around 10.5k in expenses. Can I claim all all or any of the expenses sorry to jump in but it is rather confusing first time around.

profit = turnover - allowable expenses


tax = (profit - 8100) x 20% (8100 is tax allowance for 2012-13)



if indeed your allowable expenses are 10,500


then tax =20% of (20,000 -10,000 -8100)
=20% of 1,900 = £380


all assuming no other income for that tax year

plus some NI of course

Dazed_and_confused

ginge1 wrote: »

Hi there I have a similar question ive earned around 20k so owe 4k in tax, but have around 10.5k in expenses. Can I claim all all or any of the expenses sorry to jump in but it is rather confusing first time around.

You might be better off incurring the additional expense of an accountant - looking at your post this would be money well spent!

ginge1_2

Thanks for that my expenses are allowable I work away so mostly fuel & b&b,s. It doesn't seem worth it put that way an awful lot of hours and miles for not too much reward.

CLAPTON

ginge1 wrote: »

Thanks for that my expenses are allowable I work away so mostly fuel & b&b,s. It doesn't seem worth it put that way an awful lot of hours and miles for not too much reward.

bizarre...................

ginge1_2

The accountant idea just seemed an additional expense that I thought I could do without. The 10.5k will prob be closer to 12k when other things like insurances mot,s and other costs are calculated that arnt part of my weekly costs

nomunnofun

ginge1 wrote: »

The accountant idea just seemed an additional expense that I thought I could do without. The 10.5k will prob be closer to 12k when other things like insurances mot,s and other costs are calculated that arnt part of my weekly costs

With the greatest respect, you have absolutely no idea what you are doing! Originally you state:

ive earned around 20k so owe 4k in tax which is as wrong as it possibly could be.

From your latest post (12K in expenses), you owe absolutely no tax. It would be well worthwhile paying an accountant a few hundred pounds to ensure that this is the case. Unless of course, you are happy with the £4K you first came up with.