Self employed earnings

[sumeet777]

Hello Gurus,

Can you plase help me out about my problem please.

I am a self employed guy and earnrd around £20,000 in the last 12 months but I spend nealy £6000 from it and transfered £5,000 to my saving account.

Now my question is, what will be my Self Employed earning considered, is the total amoout Paid in, in my business account or the total amout paid in minus the amout I spent.

Need you suggestion please...

Thanks!

[John]

The income is your Net Profit, that is, the gross receipts of the business, less the amount of the expenses that needed to be incurred in order to ensure you got those gross receipts.

In other words, the amount you are due to pay tax on.

[sumeet777]

Hi John, I work as a computer repair engineer. Although some time I buy computer parts and charge them in the total bill. Is it possible to show the total amount as my net profit? Do I need to send pay slips with the application??

suggestion please!!

[John]

sumeet777, do you have an Accountant? Sorry I have to say, if the answer to that is "no", well you really do need one, in view of the questions you are asking!

As you are self-employed, how would you have payslips? What you need to produce is a set of accounts, which will show details of how the net profit has been calculated.

As regards :-

I buy computer parts and charge them in the total bill. Is it possible to show the total amount as my net profit?

-: your receipts will be the total charged to your customers, including extra for parts, and the expenses will include the cost of those parts to you, and things like travelling expenses.