Skip to main content

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

Posted Sun, 03 Jan 2021 04:50:39 GMT by Matt_
I give up. I've read everything published by HMRC and I can't find any clear answers. For my job, I buy electrical tools, disinfectants and disposable plastic gloves among others. I'm using cash basis. Where do I record such expenses in the online self assessment???
Posted Fri, 08 Jan 2021 14:18:52 GMT by HMRC Admin 4
If you completing Self Assessment online there is a box on the Self Employment section asking if you are using the cash basis, you tick 'yes' if you are then continue to complete the self employment as usual, entering your turnover, expenses etc,   or if submitting a paper tax return on SA103 you put an 'X' in box 8 then continue to complete the rest of the self employment pages.
Posted Sun, 10 Jan 2021 02:03:19 GMT by Matt_
Based on what I've read, the AIA box would not be suitable for the expenses I mentioned above, when using cash basis. That leaves me with two possibilities: 1. Other Capital Allowances box; 2. When inputting the income figure, already discount it by the figure of the expenses. Shall I do one of these or something else? I am filling in an online tax return, not a paper one.
Posted Thu, 14 Jan 2021 12:12:05 GMT by HMRC Admin 2

Basically when you are using cash basis you cannot claim for anything under capital allowances, except for capital expenditure on a car.  

Everything else which is allowable will be claimed in the normal expenses section of the self employment pages.  

You should always enter your total income and then the amount of the allowable expenses, this will then deduct this amount from your income leaving you with a profit, or loss. 

Thank you.
Posted Sat, 16 Jan 2021 07:33:27 GMT by Matt_
For anybody else wondering: I've found the right place to add the expenses: There is no expenses section. It's in the income section.

You must be signed in to post in this forum.