Self assessment tax return in my 1st year

[biglips]

How to deduct a bill ie electricty bill off? Is it eg £1000 minus 10% total £900? Or is it more complex??

Can you show me how to do it as a example please?? As im crap at Maths!!

Your message is a bit unclear.

When I became self-employed mostly wfh I had an accountant for the first couple of years who advised how much I could reasonably charge against the business. He did my tax returns for me including depreciation of assets.

I then did my own tax returns using the same percentage deductions. In over 30 years of self-employment I never had any queries with HMRC.

I’m not sure what the 10% deduction of an electricity bill would be for. But just to make the calculation, if you assessed that 40% of your electricity should be applied to your business, then that would be £400 from a £1000 bill. You would then claim that as an allowable expense against your income.

I recommend getting an accountant or bookkeeper to do your taxes for a couple of years. They’ll know what HMRC will see as reasonable and give you good advice.

@Honeysuckle16 thank you....

Yes i was trying to ask to give me an example how to do the calculations. Youve just showed it to me 👍

@Honeysuckle16 (plus I've ceased my business last week as it didn't work out for me)

Just remember it needs to be proportionate to the amount of the house you are using purely for business use and for how long each day/week/month.

@DelilahBucket thank you

I was a full time childminder at my house

If you’ve ceased then use whatever you think to be reasonable in how much of your bills you allocate to your business. You can also apply a single charge for use of your house and to cover wear and tear. You should be including also consumables such as tissues, wipes, toilet paper. You’ll need receipts to cover this spending.

@Honeysuckle16 thank you. Ive managed to get abit of help off a friend and i did it correctly.

I hate Maths!! 😆