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Self employed income scheme, average calc
DanBluetooth
Posts: 1 Newbie
Hello, does anyone know if HMRC will work out my average over the last 3 years taking into account that I started my self employment part way through a tax year (ie September) so only 6 months earnings in 1st tax year. My end of year I set to 31st March to make things easier for myself!
My self employed earnings are not massive but if my 1st years 6 months earnings are effectively treated as 12 months by HMRC then my potential payment under the scheme could be drastically reduced. No income from any other sources in 17/18. I started s/e in September 2017 so have a return for 17/18 & 18/19. My earnings in 18/19 we're almost twice that of 17/18.
For example, let's say my profit in 17/18 was £6k (6months) and my profit in 18/19 was £12k (12months).
What might be the payment under the scheme?
My self employed earnings are not massive but if my 1st years 6 months earnings are effectively treated as 12 months by HMRC then my potential payment under the scheme could be drastically reduced. No income from any other sources in 17/18. I started s/e in September 2017 so have a return for 17/18 & 18/19. My earnings in 18/19 we're almost twice that of 17/18.
For example, let's say my profit in 17/18 was £6k (6months) and my profit in 18/19 was £12k (12months).
What might be the payment under the scheme?
0
Comments
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Based on the information available they will not. The part year will be treated as a full year.Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.0
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