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Posted Mon, 03 Jan 2022 11:01:20 GMT by alice barker
Hi there, I am self employed and sometimes charge a client for expenses (like stamps etc). If i charged the client £1000 per month for work and £100 for stamps I had bought how do I calculate how much tax I need to keep back? eg, do I keep 20% of £1000 for tax and keep £800 plus £100 for myself to spend?
Posted Wed, 05 Jan 2022 16:30:27 GMT by HMRC Admin 19
Hi,

You would declare both the £1000 and the £100 as profit but if you incurred £100 expenses for stamps then this would be deducted as an expense.

This means you will pay tax on a profit of £1000.

Thank you.
Posted Wed, 05 Jan 2022 16:55:54 GMT by alice barker
thank you - so just to clarify, i can pay myself £800 plus £100 that month?
Posted Mon, 10 Jan 2022 10:44:32 GMT by HMRC Admin 19
Hi,

Yes, you can have a turnover of £800 plus £100.

Thank you.

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