Starting up:
Income tax
If you are self employed you will need to pay income tax on your business profits. You should fill in the self employment pages of your income tax return and the tax is collected under the self assessment system.
Your profits are calculated as your business income less the business expenses that you are allowed to set against tax.
A distinction is drawn between capital expenditure and revenue expenditure. If revenue expenditure conforms to the general rule then it is allowed in full.
- Business expenses
- Is there any tax relief for working from home?
- Can I claim for all of my motor expenses?
Relief for capital expenditure such as, for example, the cost of your computer and car, is given in the form of capital allowances.
 |  | Related literature: |
|
Where next?
Within Starting up ...
- Developing your business idea
- Your business structure
- Setting up
- Accounting systems
- Payroll and PAYE
- National Insurance contributions
- VAT
- Corporation tax
- Contact us about this issue
- Read about how we can help you & your family
- Request a meeting with us
