My daughter started working full time and she spends about £180 a month in train travel costs going to and from her place of employment.
If she earns £19,200 for the tax year 2023 - 2024, after she deducts her personal allowance of £12,570, can she also deduct £2,160 for her train travel expenses going to and from her place of employment (£2,160 is just an example assuming she spends exactly £180 each month).
I'm new to the UK this past April 2022. I'm registered and working as a sole trader, no employees or subcontractors, working for myself as a real estate property photographer in the London area.
I've worked for myself for decades in the US. My accounting is simple here in the UK as well with some business deductions such as mobile phone use, website hosting, occasional software purchases, office supplies, and reasonable home office deductions (portion of utility bills, rent, etc).
I will never exceed more than £85,000 annually in total gross sales but my question is, is the VAT threshold based upon my gross annual sales or is VAT based upon my profits after deductions.
From what I've been reading online, it appears that VAT is charged if a business or sole trader's gross income/turnover exceeds £85,000 but I'm just trying to clarify.
Thanks in advance for your replies.
I'm a newly registered sole trader in the UK and will be filing my income taxes for the first time in 2023.
I receive a monthly US pension (social security) each month plus I also receive a small, but taxable, income on a small online business whose only clients are from the US. I also will have a small income to report that I've earned here in the UK as a property photographer. My total annual profits will not be more than £85,000, no dividends, etc. Just a simple, self-employed, sole trader.
My question is, how/when do I convert my US incomes so I can properly report the income to the UK? I surmise that to be fair, I would convert the amounts from USD to GDP on the day I received the income? If so, might it look like this based on the exchange rate for the day I received the income?
20 April 2022: $1,113 = £868.14
25 May 2022: $1,113 = £890.04
22 June 2022: $1,113 = £912.66
20 July 2022: $1,113 = £923.79
This would seem to be the proper approach? I do plan to pay for a consultation with a chartered account as well at some point in time.