Skip to main content

This is a new service – your feedback will help us to improve it.

Posted Tue, 17 May 2022 13:00:11 GMT by NormaColor
I am submitting my self assessment return for last year. I incurred costs of £200 for public liability insurance which were reimbursed by the client. I am claiming the £1000 tax free trading allowance in my return, which means i will not claim expenses. Should the amount I enter for "income" include this £200 or not? Thank you in advance
Posted Wed, 18 May 2022 10:56:54 GMT by HMRC Admin 17

The £200 would be an expense however if you are choosing to claim the £1000 allowance then you are unable
to claim this as a further tax deductable expense .

Thank you.
Posted Wed, 18 May 2022 11:56:52 GMT by NormaColor
Hi I understand that element but do i need to declare the £200 as "income"? Let's say that I billed the client £1000 for my services and £200 for this expense which I had incurred. My understanding is i need to declare £1000 as income and not £1200. Is that correct? Thank you.
Posted Thu, 19 May 2022 16:57:49 GMT by HMRC Admin 10
You would need to include £1200 in the turnover.
If you were not claiming the trading allowance they would claim £200 as part of the expenses.
As you are claiming the trading allowance they will only claim the £1000 allowance instead of the expenses.

You must be signed in to post in this forum.