Self employed tax return query

  • Thread starter Stanley Beamish
  • Start date

S

Stanley Beamish

Hello,

I run a *very* small business. I keep a 'float' of a few hundred pounds in
my business bank accout which I need to be able to make up-front purchases
of materials on behalf of my clients. A while ago I attended one of these
workshops for small businesses run by the Inland Revenue, at which they
indicated that this float is not taxed whilst it remains used for this
purpose. However, when filling in my tax return I don't know where to
account for this such that I don't end up paying tax on it. Any pointers
would be much appreciated.

Cheers,
Lucy.
 
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D

Dave

Hello,

I run a *very* small business. I keep a 'float' of a few hundred pounds in
my business bank accout which I need to be able to make up-front purchases
of materials on behalf of my clients. A while ago I attended one of these
workshops for small businesses run by the Inland Revenue, at which they
indicated that this float is not taxed whilst it remains used for this
purpose. However, when filling in my tax return I don't know where to
account for this such that I don't end up paying tax on it. Any pointers
would be much appreciated.

Cheers,
Lucy.
wtf has a bank account to do with your taxable income aka profit?
 
L

Lucy Collins

Dave said:
wtf has a bank account to do with your taxable income aka profit?
Thank you for your polite and helpful reply.

Lucy.
 
D

David Floyd

Hello,

I run a *very* small business. I keep a 'float' of a few hundred pounds in
my business bank accout which I need to be able to make up-front purchases
of materials on behalf of my clients. A while ago I attended one of these
workshops for small businesses run by the Inland Revenue, at which they
indicated that this float is not taxed whilst it remains used for this
purpose. However, when filling in my tax return I don't know where to
account for this such that I don't end up paying tax on it. Any pointers
would be much appreciated.
With the type of knowledge you're indicating you would be wise to seek
the advise of a local Tax Accountant/Tax Adviser, it would be money well
spent.

DF
 
D

Doug Ramage

Stanley Beamish said:
Hello,

I run a *very* small business. I keep a 'float' of a few hundred pounds
in
my business bank accout which I need to be able to make up-front purchases
of materials on behalf of my clients. A while ago I attended one of these
workshops for small businesses run by the Inland Revenue, at which they
indicated that this float is not taxed whilst it remains used for this
purpose. However, when filling in my tax return I don't know where to
account for this such that I don't end up paying tax on it. Any pointers
would be much appreciated.

Cheers,
Lucy.
If the business has a turnover of under £15,000, then you can complete the
smaller section which only requires 3 lines.

You are taxed on "profit", not cash or bank account balances. I think you
may have mis-understood what the IR were saying at the workshop.
 
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Peter Saxton

If the business has a turnover of under £15,000, then you can complete the
smaller section which only requires 3 lines.

You are taxed on "profit", not cash or bank account balances. I think you
may have mis-understood what the IR were saying at the workshop.
Maybe the IR should run workshops to explain what is said at the
workshops!
 

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