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Posted Wed, 15 May 2024 13:06:36 GMT by Sebabuilders
Hello. Last year, as a self-employed person, I started working with a company where I assemble kitchens and bathrooms for them. Including tax, I earned £41,295. They deducted £8,295 from me as an advance payment. They didn't include the approximately £3,500 I spent on materials. Despite this, I should have received £33,036 in my account. I did not receive this amount. I received £28,244 in my account. The missing £4,791 was transferred to my account on April 9, 2024 - i.e. in the next tax year. What do I do with it? I understand that I pay tax on the money I receive. If this is the case, I should pay tax on £4,791 this year even though it was already paid last year. Well, what about the material (£3,500) and tax was deducted for that. Please give me information/advice on how to solve this problem. Thank you very much Seb
Posted Fri, 17 May 2024 15:01:59 GMT by HMRC Admin 25
Hi Sebabuilders,
As your income is taxable on a receipts basis, you will declare the £4791 in 24/25.
To claim the expenses you need to claim this in a Self Asessment tax return under your self employment page.
Please find more guidance here for self employed expenses. 
Expenses if you're self-employed
Thank you. 

 

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