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Tax credits question- deductions

(2 Posts)
LovelyBath77 Thu 25-May-17 10:29:03

Hi can anyone help, just doing the renewal and noticed we had;t given a figure for the box for deductions for DH- personal pensions and work expenses (not travel but membership of trade bodies etc) It says this is for those in employment- he's self employed, does it include him too? Thanks.

LovelyBath77 Thu 25-May-17 10:40:53

Hi sorry - think this in included in the profit figure- just sharing for info.

Self-employed people
There are 3 steps to working out your income from self-employment.

Step 1: work out your profit
Your profit is what you gave on your Self Assessment tax return for the last tax year. If you had more than 1 business, add up all of the separate business profits.

If you haven’t filled in your tax return, you’ll need to estimate your profit.

What else to include
Make sure your profit includes other income or profits your business received, for example rental income from a flat above a shop. Don’t include this as ‘other income’ too.

Include any profit from working outside the UK, in British pounds. To work this out, use the average exchange rate for the last tax year. This will be the average exchange rate for the year to 31 March. Use HMRC exchange rate tables.

You can get help with working out your profit by calling the Self Assessment Helpline.

Step 2: what to take off your profit
To work out what to take off your profit, add up:

the gross amount of any personal pension payments
any trading losses from the same business you brought forward from a previous year
the gross amount of any donations to charity using Gift Aid
There’s a working sheet you can use to work out your pension contributions, Gift Aid or trading losses.

Step 3: what you have left
Minus the Step 2 total from the Step 1 total, to get your income from self-employment. Put this on your tax credits claim form or annual declaration in the ‘income from self-employment’ box.

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