Tax

markharriers

Hello everyone!!

I am coming to the end of my first tax year as a self imployed bussiness owner.
I have up dated my exspenses and income and my profit is high, was just wondering if anyone had legal advice to get this figue down? Not sure if i could invest in a isa or wherever you guys could suggest be be very greatfully received.

Thank you in advance

00ec25

you post lacks so much info it is rather pointless trying to offer advice

- sole trader?
- partnership?
- Ltd co?

markharriers

00ec25 wrote: »

you post lacks so much info it is rather pointless trying to offer advice

- sole trader?
- partnership?
- Ltd co?

Sorry sole trader

00ec25

markharriers wrote: »

Sorry sole trader

in that case no an ISA is irrelevant

your business profit is your taxable income. Any money you spend, save or invest is coming from your post tax profits so cannot be claimed to be an "expense" of the business and thus a reduction in taxable profits

also as a sole trader be careful about "creating" additional actual expenditure and claiming it as business costs. That may well be seen simply as "drawings" from the business, spent on items for personal use and thus not a business expense.

the only tax "saving" thing you can do is pay into a pension. Won't reduce your profits, but will save tax

martindow

markharriers wrote: »

my profit is high,

Well done! You will have to pay some tax but high profits are much better than low ones.

It can be a good idea to put a percentage of your takings aside so that the tax bill at the end of the year doesn't come as a shock. Maybe cash flow is behind your question?

dancing_star

Are you making contributions to a personal pension scheme?

Pennywise

You could always buy some new equipment for your business or stock up on consumables/supplies.