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  • FIRST POST
    • juicylucym
    • By juicylucym 14th Jan 20, 8:18 PM
    • 11Posts
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    juicylucym
    Self Assessment Sole Trader Expenses
    • #1
    • 14th Jan 20, 8:18 PM
    Self Assessment Sole Trader Expenses 14th Jan 20 at 8:18 PM
    Hi my husband is a self employed courier driver and last year for the first time, had to start paying his own van rental, fuel, mobile phone etc. This came to 6k for the half year he worked.
    We submitted this as part of his self-assessment tax return in June 2019 but all they have come back saying is he doesn't owe any tax as he earnt below his tax code and we paid 80 NI owed.
    This is fine but what happens about the 6k expenses? Do we get these back as a tax return or are we not entitled to this for some reason?
Page 1
    • Dazed and confused
    • By Dazed and confused 14th Jan 20, 8:24 PM
    • 6,193 Posts
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    Dazed and confused
    • #2
    • 14th Jan 20, 8:24 PM
    • #2
    • 14th Jan 20, 8:24 PM
    HMRC don't pay expenses (unless you work them I suppose).

    They reduce your business turnover which can mean you pay less tax and Class 4 National Insurance. But if you didn't have sufficient income in the year to pay tax/Class 4 NIC in the first place they might in reality have little impact.

    Was the end result a business profit or loss?

    Did he have any other taxable income such as a PAYE job in the same tax year?
    • juicylucym
    • By juicylucym 14th Jan 20, 8:37 PM
    • 11 Posts
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    juicylucym
    • #3
    • 14th Jan 20, 8:37 PM
    • #3
    • 14th Jan 20, 8:37 PM
    Thank you, so where do we get this money back from? Or do we not get it back at all? The total profit was around the same amount as the expenses.
    No other taxable income but he was claiming ESA and PIP until then? Would that have had an impact on this?
    • Dazed and confused
    • By Dazed and confused 14th Jan 20, 8:42 PM
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    Dazed and confused
    • #4
    • 14th Jan 20, 8:42 PM
    • #4
    • 14th Jan 20, 8:42 PM
    You don't get it back from anyone. Why do you think you will get it back?

    If the result was basically no taxable profit then that's an end of it. If he made a loss then it might be possible to offset that against income in an earlier or future tax year however you would probably need an accountant to help you with that.

    Was the ESA received in 2018:19 taxable and if so did you include that on the Self Assessment return?
    • juicylucym
    • By juicylucym 14th Jan 20, 8:44 PM
    • 11 Posts
    • 4 Thanks
    juicylucym
    • #5
    • 14th Jan 20, 8:44 PM
    • #5
    • 14th Jan 20, 8:44 PM
    No the ESA wasn't taxable, sounds like i'll need to find myself an accountant for this years!
    Thanks so much for your help!!
    • Dazed and confused
    • By Dazed and confused 14th Jan 20, 8:50 PM
    • 6,193 Posts
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    Dazed and confused
    • #6
    • 14th Jan 20, 8:50 PM
    • #6
    • 14th Jan 20, 8:50 PM
    Try and find someone a friend/relative/colleague recommends.

    You may get an initial chat for free however before even getting to that stage you need to consider the possible benefits against potential outlay.

    If the business made a loss of say 500 then the maximum tax refund he is likely to get is either 100 or a reduced tax bill in a later tax year.

    There seems little point in paying an accountant 250 to get a 100 tax refund.
    • 00ec25
    • By 00ec25 14th Jan 20, 9:03 PM
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    00ec25
    • #7
    • 14th Jan 20, 9:03 PM
    • #7
    • 14th Jan 20, 9:03 PM
    yes do get an accountant because you are clearly way beyond your depth and you have listed expenses that may not be wholly and exclusively business related.
    A concept I doubt you have come across, but one which could land him with a tax bill if you have got it wrong.
    • BoGoF
    • By BoGoF 14th Jan 20, 9:36 PM
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    BoGoF
    • #8
    • 14th Jan 20, 9:36 PM
    • #8
    • 14th Jan 20, 9:36 PM
    Too many people listen to the guy down the pub who tells them "you get your tax back on you expenses"
    • robber2
    • By robber2 14th Jan 20, 9:55 PM
    • 454 Posts
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    robber2
    • #9
    • 14th Jan 20, 9:55 PM
    • #9
    • 14th Jan 20, 9:55 PM
    Juicylucy,



    you should be able to save yourself at least some of the cost of employing an accountant by doing a little bit of your own research.



    This is as good a place to start as any;


    https://www.gov.uk/expenses-if-youre-self-employed


    good luck.
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