Sorry.....Thick question

[Helpinghands]

Once you have noted all your earnings and expenditure, do you literallly minus your allowable expenses from your profit??

For example......

I earned £100 this week.........spent £25 on equipment

So do I minus £25 from my tax??

:confused:

[sarah707]

Income - expenses = the amount on which you will pay 20% tax.

So yes, if you earn £100 and your expenses (10% wear and tear, bills, shopping, resources, insurance etc) = £30 then you will pay 20% tax on £70.

Does that make sense? It does to me but my maths is not my strong point :cool:

[Helpinghands]

Perfect!!! Thanks:)

[Andrea08]

hi i use the ncma accounts book and its great dont know how i would work it all out without it, the last pages esp helps for our tax return forms, if you dont want to pay for one just have a look and copy the idea x

[kindredspirits]

don't forget you can deduct a percentage of your gas, electric, rent etc etc. and you'd usually work out the total profit at the end of the tax year rather than per week, i think.

[rickysmiths]

I use the NCMA accounts book would be lost without and its easy to get the parents to sign the back pages confirming income