Self assessment advice

powelly95

My wife has just started as a self employed hair dresser, and I've decided to take on the task of dealing with her income/expenses.

She has got herself a 'sumup' card machine to take payments from her clients, which automatically takes 1.69%.

To keep on top of her income/expenses I have created a simple spreadsheet so that I have all the info I need for her self assessment at the end of the tax year.

Does anyone know how it works in regards to the sum up 1.69% fee. If she charges a client £100, she will only receive £98.31. Is this the figure she puts on her SA or do we put the £100 and claim expenses for the 1.69% fee?

General_Grant

powelly95 said:

My wife has just started as a self employed hair dresser, and I've decided to take on the task of dealing with her income/expenses.

She has got herself a 'sumup' card machine to take payments from her clients, which automatically takes 1.69%.

To keep on top of her income/expenses I have created a simple spreadsheet so that I have all the info I need for her self assessment at the end of the tax year.

Does anyone know how it works in regards to the sum up 1.69% fee. If she charges a client £100, she will only receive £98.31. Is this the figure she puts on her SA or do we put the £100 and claim expenses for the 1.69% fee?

The £100 is being charged to her customer by her, part of her turnover.  It is what she would use on her invoice and what the customer is paying.
The £1.69 is one of the costs of running her business: the customer is not paying her £98.31 and the service provider £1.69.  How does the service show the payments when documenting this?

AskAsk

you would record £100 as income / revenue and £1.69 as expense

TBagpuss

The £100 is her income / turnover, the £1.69 is an expense.
In the same way,  if she charges the customer £100 but used £10 worth of dye on their hair, the £100 would be her income and the £10 would be an expense.

powelly95

Thanks everyone, makes sense!