![]() Employment - this refers to the income you earn from any job you have in addition to running your business (remember that the work you do for your own business does not count as employment).This means that you shouldn’t include any of the following additional sources of income: When you’re completing the Self Employment pages of your tax return, you should only include the trading income from your business. Only include business income on the Self Employment pages If you’re in any doubt about which business income to declare on your tax return, or which method of accounting you’re using, you should speak to an accountant. This means that if you issued an invoice in the 2021/22 tax year and your customer paid during the 2022/23 tax year, you should declare the income in your 2022/23 tax return, which covers the tax year in which you received payment. If you use cash basis accounting, you must only declare the income that you received during the tax year that you’re filing for. If you completed a piece of work in 2021/22, for example, and the date of the invoice fell within the 2022/23 tax year, you should declare that income in your 2021/22 tax return. It also means that if you provide a service through your business, you should declare your income in the tax year in which you complete work, rather than the tax year in which you invoice for it. This means that if you issued an invoice in the 2021/22 tax year and your customer paid during the 2022/23 tax year, you should declare the income in your 2021/22 tax return, which covers the tax year in which you issued the invoice. If you use accruals basis accounting, you must declare all of the income that you earned during the tax year that you’re filing for. The method of accounting you use will dictate which business income to include in your Self Assessment tax return. Declare income according to your chosen accounting method Don’t include income from an earlier or later year unless you’re sure it should be counted. Check the dates of the income you’re declaringīefore you begin calculating your income, make sure that the income you’re including is dated between 6th April and 5th April of the relevant tax year. This guide explains how to calculate this figure if you keep your business accounts to 5th April each year. If you’re a self-employed sole trader and you’re in the process of preparing your annual Self Assessment tax return, you might be wondering what figure to enter in the ‘business income’ box on the Self Employment pages. How to calculate your business income for Self Assessment
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