Help with understanding different types of Self Employed expenses.

I’m a freelancer in the UK.

Trying to fill out my tax return.

I'm confused about the different types of expenses I have.

I have straightforward business expenses i.e a hard-drive I needed to buy for my business, notebook, travel etc

But I also have reimbursed expenses i.e this year I took on a large job with a theatre company. The company that contracted me gave me a budget to buy some kit. I spent £3500 on kit and they reimbursed me the day after I invoiced them.

I have a few other expenses like this. I am confused about how these expenses work. The way I am seeing it/understanding it in my head is like I loaned the company I was working with £3500 and they paid me back. It wasn't my expense. The kit belongs to them and is at their office.

Without that particular expense my income would be £16,000 and my expenses would be £2000 this year but with that expense my income is £19,500 and my expenses £5,500.

I was told a while ago that it was considered suspicious if you had huge expenses?

Could someone explain to me how this works? and Do I need to declare those types of expenses? and if so do I still need the receipts?

Thanks so much

 

Thanks Becky.

Do you know what does and doesn't count as a disbursement?

 

Yes.

I bought a hard-drive to put content on for a company that I am working with. The hard-drive is for them not me. They have it now. They reimbursed me via invoice within the week.

In my bank I have the £89 going out for the hard-drive and then £89 coming in - it looks like income but it isn't.

Thanks