Tax efficiency for the self-employed

gwenb

Hello,
I am self-employed and I've been asked to invoice a client for my services along with all other expenses. What would be most efficient way to deal with this situation?
Basically, my real income is not what they pay me as part of it are expenses for the invoiced work but that's what the bank statements show.
When preparing my tax return, should I include the payment received as my income?
Thanks.

rwb

Yes, you should. You should also account for the expenses you've incurred to calculate your profits.

I'd suggest you would benefit from speaking to, and working with, an accountant.

Neillaw

I take it your using cash accounting.
I agree with RWB, your turnover should include your charges for expenses. The cost of the expenses would then be allocated in overheads.

gwenb

Thank you Neil.