Self employed and child benefit

claire1977_2

Hi everyone just checking something I have searched everywhere but am struggling to find an answer. My Husband is selfemployed and had a net income of 51000 in the last tax year and his profit worked out to be around 36000 will the new child benefit taxable amount be on his profit or income, on the tax form it says income but surely it should be on profit can anyone clarify please? Im struggling to get my head around it
Thanks

zygurat789

claire1977 wrote: »

Hi everyone just checking something I have searched everywhere but am struggling to find an answer. My Husband is selfemployed and had a net income of 51000 in the last tax year and his profit worked out to be around 36000 will the new child benefit taxable amount be on his profit or income, on the tax form it says income but surely it should be on profit can anyone clarify please? Im struggling to get my head around it
Thanks

Net income is taxable income.
If Net income is £51,000 and profit is £36,000 then you may not be using the correct terminology.
Are his sales £51,000 and expenses £15,000 leaving £36,000 net taxable profit perhaps. In which case his income is £36,000, this is his gross income on which he is taxed.
Does this help?

claire1977_2

Thankyou, Yes sales was £51000 and expenses £15000 thanks sorry I think I have got my head all muddled today. So in this instance with reagrds to the £50000 child benefit earning limit we are not affected?

zygurat789

claire1977 wrote: »

Thankyou, Yes sales was £51000 and expenses £15000 thanks sorry I think I have got my head all muddled today. So in this instance with reagrds to the £50000 child benefit earning limit we are not affected?

If your husband was employed his P60 would start off Gross pay £36,000.
Gross pay is earnings
Just in case he has a better year next year you should consider a pension because I believe the £50,000 is taxable income and pensions are deducted before arriving at the taxable amount.

mania112

Trading Losses can be removed from the equation, so can Gift Aid donations and Gross Pension Contributions.

claire1977_2

Thanks for the help:beer: