Hi, One of my friend wants to do his self-assesment. As on the picture shows his salary shows a £660 figure, but the fuel price he received he spent on fuel so his actual profit is £500. Can he deduct the price of the fuel the company paid to him and declare tax after that amount? He is working as a self-employed delivery guy.
thank you
As far as I understand the invoice, he received £660 as his daily rate and he also received compensation for his fuel £171. So these two amounts need to be added to give the total income received on this invoice: £660+£171=£ 831.
Then he can deduct from the above total the amount he has actually spent on fuel. Obviously he must be able to provide evidence on any expenses.
Let say his fuel expenses are the same amount £171.
Then his profit from this client is £831 - £171 = £660
Please, let me know if this is making sense to you.
