tax credits,self assessment,profit &loss

carebear13

Hi- Just after a bit of advice before I send my renewal pack back.
My hubby has 2 s/employment jobs, 1 has made a pretty good profit but the other because it is a newer one has quite a loss on it. From what I have read we take the gross earnings from both of them, minus the expenses, minus the loss, and this is the figure that goes on the form? Is that right?
Also when I do the renewal they will use those figures as an estimate for this years wont they, but I honestly have no idea what our income is going to be, I am likely to be off work for quite some time on ssp and unpaid time, and although we are hoping that the 2nd s/e job will make money, we don't know how much as it's very seasonal. I know that we have to give final figures by end of jan 2014 but if I think we are going to go way over, should I tell them earlier? there are so many changes going on at the moment with our income (add in a possible claim for childs dla) and it all equals a nightmare. I am staying at the hospital and with only a mobile phone, I cant even phone them!
Thank you for any advice that you can give me.

carebear13

Can anybody help??x

Icequeen99

You need to work out the profit/loss of each self-employment - so the income - expenses. Just as you would for your tax return.

If one has a profit and one a loss then you deduct the loss from the profit and enter whatever is left as self-employed income.

It is the same taxable profit figure that you will enter on the tax return.

If the loss is bigger than the profit, then you can deduct the loss from any other income of your OH or from your income.

When you say 'we don't know how much as it's very seasonal. I know that we have to give final figures by end of jan 2014 but if I think we are going to go way over, should I tell them earlier?' I am not sure what you are asking.

By January 2014 - you need to confirm you 12/13 income, not give them estimates of your 13/14 income.

By then you should have done your 12/13 tax return and know the exact income from self-employment. Has your OH already done his 12/13 tax return?

With regards to estimating your 13/14 income, you can only do your best to estimate, but if the estimate is too low there may be an overpayment. If you think 13/14 is going to be a lot higher than 12/13 then let them know straight away.

IQ

carebear13

Hi IQ,
Thank you for your help. yes he has just done his tax return for 2012/13 as he likes to get it all sorted and done.
with regards to 2013/14 income I think I will just have to keep an eye on it and see how it goes.(that was what I meant but my brain is fuddled,and I got the years wrong).