Sorry, I'm clueless, this is probably an easy Q

[rowanjthomas]

Sorry if this is an obvious question but I really don't know the answer;

Basically I do freelance work, and sometimes the person who gets me work will ask for a cut; say 25% commission for providing me with the work. So let's say I earn £1000 on a job, I will pay the person £250 back. Now when it comes to my tax return, are my profits £1000 or £750? Is there somewhere where I can claim that £250 back as expenses or wages or something like that? Or does it fall outside of my business expenses somehow?

Explain it like you would to a 7 year old, cause I'm dense!

Thanks

[bd6759]

It is an expense that reduces your profit.

Your income is £1000. You deduct the expense of £250. Your profit is £750. You pay tax on your profit.