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  • Carrying losses over for sole traders

    I am a self-employed sole trader. In the tax year ending 2019 when I set up my business, I made a loss of £1300 which was entered on my tax return form. In the tax year end 2020 I carried the loss over on the tax returns and then again Year end 2021 even when I made a profit. Can you please clarify how many years you can carry the loss over? Is it correct that you can continue to carry the loss forward even when you make a profit? Can you remind me which box you use to carry the loss forward when entering on the tax return forms? Lastly if I want to use my loss this year (2021- 2022) how do I do this on the form and which box do I use? Forgive me but I am finding the HMRC documents on this subject matter very hard to understand.
  • How can I invoice, record and enter travel expenses for clients when I provided the travel?

    I am a self employed sole trader . I work for an elderly lady as a PA and she asks me to drive her to many different places using my own car. I currently invoice her with two lines for example : £300 for hours worked and £95 for travel expenses – charging at 45p per mile. In this example she paid me £395, Do I record £395 as my income ? and then make sure that I record the £95 as an expense? Or do I put down £300 as income and the £95 is recorded as something else? How should I record this in my accounts and how should I enter it in my tax returns?
  • Tax returns and registering for multiple types of different self-employed jobs.

    A few years ago I registered as a self employed Sole Trader sand described the business as offering a wide range of services within the education / community (delivering events, parties, teaching education programmes and education consultancy). Overtime it has expanded into other areas including PA help for an elderly client which I now spend most of my time doing . I have been invoicing using my Sole Trader name which was originally set for the education and community service and have been putting my income into this bank because I see the PA work as a service. I have also been submitting my tax returns all as one and have been keeping all book records as one. Is this allowable under HMRC rules? Please advise if I need to make any changes.  
  • recording and claiming expenses when making purchases for clients

    I am a self-employed sole trader and work for different clients. They ask me to invoice for my time and then invoice for the equipment I purchase. For example they were invoiced £200 for hours worked and £100 purchasing equipment/ consumable resources for their site. When I enter the information on my tax return form do I enter it as ; £300 income because that is what is seen as going into my account and then do I deduct the £100 as expenses? Or do I enter it is £200 income only with no need to record my expenses?
  • Self-employed, claiming travel expenses at 45p per mile

    I am a self-employed sole trader and offer different services to different clients. I travel to one client’s house approximately2- 3 times a week for most of the year, can I claim travel expenses (tax relief) for this? I have a freelance contract doing a different type of work with a charity and spend approximately 15 times a year travelling to their site, can I claim travel expenses for this job? I have another self-employed freelance contract offer a different type of work and work on the clients site once a week, can I claim travel expenses for this job? My main base is working from home. For all my different types of work I am required to travel to different shops to purchase consumables, and find resources from different locations, Can I claim travel expenses for this ?  I have attended the HMRC Webinar on claiming expenses but was unable to find the answer for my particular circumstance.
  • Split Rental Income

    Hi there, I hope you can assist? I own and rent out a single property with my wife. The deeds of the property and mortgage are in my name only as I purchased the property prior to meeting my now wife and I used to live at the property. I would like to split my rental income 50:50 between my wife and I on my tax return. Can you please be kind enough to explain what steps I would need to take in order to complete this, and also, can this be applied retrospectively? Many thanks