paying tax help

[bellisime]

hi everyone
could someone give me advice on how you sort out you tax being self employed
i have been told that you take out all you expenses then you need to save at least 20 % a week to cover the bill, but buy expenses does that mean petrol ,parking,my wages or is it just the rent and materials.
can anyone help this is all abit confusing

 

[Northern Nails]

As far as i am aware your expenses are everything you need to run your business incl the things you have sais but DON'T incl you wages. I th0ught you were taxed on any profit, this will include your wages but not ex[enses. Hope that sounds clearer!!???

hi everyone
could someone give me advice on how you sort out you tax being self employed
i have been told that you take out all you expenses then you need to save at least 20 % a week to cover the bill, but buy expenses does that mean petrol ,parking,my wages or is it just the rent and materials.
can anyone help this is all abit confusing

 

[room one]

When you register with the Inland Revenue as Self Employed they will give you an information booklet that will explain everything and there are even free workshops you can attend on how to fill out your self assessment tax return. But you are right in that you only pay tax on profit i.e the amount you earn. Anything other than wages that is related to your work is classed as a business expenditure and therefore not taxable.

There are advisers at your local Inland Revenue Office to give free advice or try the website www.inlandrevenue/gov.co.uk. If you really can't make head nor tail of it seek a professional and they will do it all for you all you have to provide is proof of earnings, invoices of purchases etc but obviously they charge! If you do go down this route accountants prove expensive so seek out a local 'book-keeper' they are much more reasonable (and usually easier to understand!)

Good luck navigating the minefield...Any more questions feel free to try me .x.x.x