Self employed business expense

GSTAR

I work as a self-employed web developer. Recently I spent around two weeks building an essential system to support my work.

This didn't actually cost me anything to do, other than my time. So effectively I had two weeks without any income. My question is, can I in any way put the value of these two weeks down as a business expense? As if I hadn't built the system myself I would have purchased a ready-made one, for around the same value anyway.

TheCyclingProgrammer

No. You haven!!!8217;t actually incurred any costs. Your time is not a tax deductible expense. Imagine if it were!

Charge client £300 a day.
Offset the cost of your time at £300 a day.
Taxable profit: nil.

Maybe not?

greatkingrat

GSTAR wrote: »

I work as a self-employed web developer. Recently I spent around two weeks building an essential system to support my work.

This didn't actually cost me anything to do, other than my time. So effectively I had two weeks without any income. My question is, can I in any way put the value of these two weeks down as a business expense? As if I hadn't built the system myself I would have purchased a ready-made one, for around the same value anyway.

So you haven't actually lost anything.

Building your own system
Income £0
Costs £0
Profit £0

Buying a system
Income £2000 (from doing other work)
Costs £2000 (of buying the system)
Profit £0

Potbellypig

GSTAR wrote: »

I work as a self-employed web developer. Recently I spent around two weeks building an essential system to support my work.

This didn't actually cost me anything to do, other than my time. So effectively I had two weeks without any income. My question is, can I in any way put the value of these two weeks down as a business expense? As if I hadn't built the system myself I would have purchased a ready-made one, for around the same value anyway.

You can put what you like through your books. Put £2000 through for the 'time', if you like. You'll never get it passed if you get investigated, but in answer to your question, yes you can put something through for it.

chrismac1

So long as you also put £2,000 in as income for the value you've paid yourself. No problemo.