Question related to building trade self employment (kind of), where working via agency and getting paid via payroll company, which collects a fee for each payslip.
Apologies if question seems simple, but I just got mixed up regarding which amount I would use for self assessment where I need to specify gross income.
Example weekly Payslip:
Contracted sum: £780.00
Agency fee: £16.00
Gross pay: £764.00
Deducted tax (CIS): £152.80
Payment to bank: £611.20
When doing my self assessment I think I need to specify top sum (contracted sum - £780.00 ) as my gross income (before taxes and expenses).
I will specify paid tax separately and add agency's fee as expenses.
is that the correct way?
Or I need to specify only taxable amount £764.00 as my income before tax.
If that's the case, can I still add agency's fee as expense?
Second way does not seem right, but I got myself confused now.
Perhaps someone with similar experience can share what do they specify as income.