As a self employed tax payer, you are required to submit a set of annual accounts showing income and expenditure to support the figures you have entered. However, if your turnover is consistently below £15,000 per year you may be able to take advantage of a concession, which removes the requirement to submit accounts. For further information concerning this concession and details of the conditions which must be met please refer to our Guide GN4 - Self-employment.
Within this period you must enter details of your gross income (before any business expenses) and details of your expenditure, e.g. tools, materials, fuel, etc. Not all expenditure is allowable as a deduction from your gross income, e.g. expenses arising from personal use.
If you are claiming capital allowances for the depreciation of a business asset, you should submit a tax computation with your accounts.
For more detailed information please refer to our Guide GN4 - Self-employment.
