SA302 Profit Query

black_box

Thanks so much for these responses. I just found myself snowed under but will respond soon with a bit more clarity!

Thanks again.

black_box

Sorry I'm a bit late in coming back on this...

To clarify, I'm a sole trader, so no company/dividends/salary involved.

I've never had an SA302, even though I've been self-employed for 8 years. I just never requested one.

To use random figures:

2013/2014 I made £50K. I bought a lot of equipment which took my taxable income down to £15K. Much of this I claimed as expenses, rather than AIA. It won't change my tax position, but I was thinking about making an amendment to my tax return to reflect the correct amount as AIA, rather than expenses, in case that would be reflected on my SA302 as a higher income.

From what I now understand the income amount shown on the SA302 would still be the 15K, rather than the 15K plus what I was claiming as AIA, so it seems that it's not worth amending my tax return, bringing myself to the attention of HMRC etc. if it's not going to help me from an income/mortgage perspective.

The second query was what do I do now for my upcoming 2014/2015 application...

I could correctly claim another large amount of AIA for this year, but if this is going to leave me with taxable profits on the SA302 of around 15/20K again then I'm just accounting myself into a corner from a mortgage perspective (I'm looking for a mortgage of around £90K).

If I were to do my new tax return in May of this year, with no deductions, apply (and hopefully get) a mortgage in June/July, then amend my tax return with the AIA claims after that, is this illegal? Given that tax doesn't have to be paid before Jan 2016, wouldn't I be within my rights to do this?

I presume I might end up on some kind of HMRC "to watch/investigate" list though might I?

Thanks in advance.