Self employed business expense

Options
GSTAR
GSTAR Posts: 44 Forumite
First Anniversary Name Dropper First Post Combo Breaker
in Cutting tax
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.

Comments

  • TheCyclingProgrammer
    TheCyclingProgrammer Posts: 3,702 Forumite
    First Anniversary First Post Photogenic
    Options
    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
    greatkingrat Posts: 325 Forumite
    First Anniversary First Post
    Options
    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
    Potbellypig Posts: 775 Forumite
    First Anniversary Name Dropper First Post
    Options
    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
    chrismac1 Posts: 2,585 Forumite
    Options
    So long as you also put £2,000 in as income for the value you've paid yourself. No problemo.
    Hideous Muddles from Right Charlies
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343.2K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.7K Spending & Discounts
  • 235.3K Work, Benefits & Business
  • 608.1K Mortgages, Homes & Bills
  • 173.1K Life & Family
  • 247.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards