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Expenses for Self Employed

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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?

Comments

  • Caz3121
    Caz3121 Posts: 15,832 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    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
    MataNui Posts: 1,075 Forumite
    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.
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