Home For accounting professionals General accounting discussion
Current updates regarding coronavirus (Covid-19) and the precautions AAT are taking will be continually updated on the below page.

Please check this link for the latest updates:
We hope you are all safe and well and if you need us we will be here. 💚


Tax efficiency for the self-employed

gwenbgwenb MAAT, AAT Licensed Accountant Posts: 42
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.

Comments

  • rwbrwb New Member Registered Posts: 32
    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.
    MarieNoelle
  • NeillawNeillaw New Member RossendaleMAAT, AAT Licensed Accountant Posts: 268
    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.
  • gwenbgwenb MAAT, AAT Licensed Accountant Posts: 42
    Thank you Neil.
Sign In or Register to comment.