Expenses for Self Employed

TheFox30

Hi

I'm self employed and about to fill in my first tax return. This will be for 13/14. However, I've got a quick question re expenses. It's a simplistic question I know, but having scoured the Internet, I'm struggling to find an answer to it.

Let's say for the sake of argument that my gross income for that tax year is £8000. I'm well aware I don't pay tax on this as it's below the threshold.

However, let's also say that my allowable expenses come to £1000. Will I receive tax back on these expenses - ie 20% of £1000 = £200, so will I receive £200? Or do expenses not come into it due to me being below the threshold?

Caz3121

gross income is £8,000, if the allowable expenses are £1,000 then this leaves a taxable income of £7,000 so nothing benefited

if your gross income was over £11k then you would see the benefit of the tax saved from the expenses

MataNui

Expenses only reduce the taxable income. So as you have probably already guessed it only helps if your gross income is over the tax free allowance.