Tax Return 08/09 Year

columbia

Hi

Although I'm still a student member, I wondered if someone on this forum could advise me please.

A friend filled out her own tax return for the 08/09 year and it has been sent back to her as she hadn't filled out the supplementary self-employment (short) return.

I have never filled one out for a self-employed person and hoped someone could kindly point me in the right direction so that I can help her.

She only has a small income (less than the personal allowance amount). She works from her home offering an ironing service and there is no travelling required.

Where I need advice is that I know her turnover to enter into box 8, and I have a breakdown of her expenses to enter into box 19, but basically what she does is charge her clients, pay her expenses and the remaning amount she has classed as her wages, but if I enter this amount into box 12 as a wage then her total allowable expenses would equal the amount of her turnover resulting in a net profit/loss of zero - and this does not seem right.

If anyone could help I would really appreciate it, I'm very tired and losing the capacity to think straight!

Kind regards
Tracy

Anne Boleyn

Tax return

Hi Columbia

The money taken out of their business by a sole trader is not classed as wages but drawings and these are not an allowable business expense.

Hope this helps.

columbia

Thanks for your prompt reply.

I hoped this was the case, otherwise the figures would all be wrong.

Kind regards
Tracy