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Where Taxpayers and Advisers Meet

Self assessment & disbursements

Justme25
Posts:1
Joined:Sat Jul 22, 2017 12:59 pm
Self assessment & disbursements

Postby Justme25 » Sat Jul 22, 2017 1:28 pm

Hi all,

I am just filing my self assessment return.

This year I have had an unusually high amount of disbursements (or what I think are disbursements) for my clients after a change of business focus.

This is making my tax return look like I am not claiming enough profits for the turn over.

I am not VAT registered.

I sell my time / service to train people.

At the end of the training they take a Government test that I book but only they can use it as the test is named specifically for them.

I book & pay for that test on their behalf & charge it on to them at cost & listed as a separate item on the invoice.

Do I have to list that cost on my self assessment as income & expenses or can I leave it off?

The test fees are aprox 26% of my turn over.

With them on the account I am showing a net profit of 32% & without them 44%

Or am I worrying too much?

pawncob
Posts:5090
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Self assessment & disbursements

Postby pawncob » Mon Jul 24, 2017 10:28 am

You're worrying needlessly. Show gross income and show disbursements as expenses. There's no magic % which HMRC expect on this sort of business.
With a pinch of salt take what I say, but don't exceed your RDA


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