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Posted Thu, 05 Aug 2021 15:48:11 GMT by Ally Delta
Dear reader, I am confused about how my remunerated expenses fit into my self assessment. I work as a self employed nanny and I have two sets of expenses: 1. Standard expenses, insurance, equipment etc. 2. Milage (45p a mile), parking and occasionally food. Items in list number 2, are all expenses that are part of looking after the children of one family. This family, pay me back for all of these expenses, weekly or monthly. Because I have already been paid back for them, this sum does not belong with the other expense items in list 1 that I have not been paid for, so are not set off against my profits to determine where I sit in the tax free amount. But it also doesn’t make sense that they should be included in my profits. For instance, if I went shopping for the family and bought £200 of food shopping, which they then paid me back for in with my weekly invoice, I would have to pay £40 tax for the pleasure. This doesn’t seem right to me. Could someone please explain if I should deduct the total of the remunerated expenses from my profits, and if so do I put the total anywhere else? Thank you in advance for you time and your help.
Posted Mon, 09 Aug 2021 14:24:53 GMT by HMRC Admin 24
Hi,

You would enter the reimbursement of the expenses, for example £200 for the payment received. You would also enter the same amount of allowable expenses paid out.

This will balance each other out so that no tax is calculated on these expenses. 

Thank you.
Posted Thu, 12 Aug 2021 12:20:57 GMT by Ally Delta
Thank you very much for your response. Can I just confirm, that I enter the reimbursement along with my other income into my profits, then also enter the same total in with my other expenses? Thanks again.
Posted Mon, 16 Aug 2021 10:07:41 GMT by HMRC Admin 18
Hi,

That is correct

Thank you.

 
Posted Sat, 04 Sep 2021 13:36:02 GMT by Ally Delta
Thank you very much for your time and your help.

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