income received but i buy materials for customers

[smithy]

my total income received for last years tax return included me buying materials for any jobs the customer needed,should the materials i bought for customer come off from income i.e income received-£20000 less materials-£6000,then less everything else im due to make my final income?

 

[elaine@cheapaccounting]

you put the costs in the relevant boxes on the self employed self assessment return box 10 on SA103

 

[Zeno]

You may like to read up on how this affects things like VAT registration and CIS (Construction Industry Scheme if applicable).

 

[smithy]

so materials bought for customers should come off from the income i made :|

 

[Zeno]

so materials bought for customers should come off from the income i made :|

Sales £20,000

Less: Materials £6,000

Gross Profit: £14,000

Less: Expenses/Overheads £X

Net Profit: £X

 

[Zeno]

Unless you are pulling the old tradesman dodge to avoid VAT by getting your customer to give you cash for materials then you invoice your labour only?

 

[elaine@cheapaccounting]

so materials bought for customers should come off from the income i made :|

yes and so do other costs assuming you are self employed

 

[smithy]

yes and so do other costs assuming you are self employed

yes i'm self employed

 

[elaine@cheapaccounting]

well then have a read of the notes to the SA103 here:

http://www.hmrc.gov.uk/worksheets/sa103s-notes.pdf