Self employed question

[oodya]

Hello all,

I am self employed, but have not been showing a profit as I reinvest all the money back into the business.

Due to COVID-19, I have literally had no money coming in.

I am currently on working tax credit and was wondering what options I have with regards to the COVID-19?

Any advice would be much appreciated.

 

[Newchodge]

Have you filed self assessments for the last 3 years?

 

[oodya]

Hello,

Yes I have filed self assessment for the last 5 years. As mentioned there has been no profits as I have invested everything back into the business (simply to have more stock, machinery, assets etc)

 

[Mr D]

Hello,

Yes I have filed self assessment for the last 5 years. As mentioned there has been no profits as I have invested everything back into the business (simply to have more stock, machinery, assets etc)

That doesn't necessarily exclude having profits in the accounts.

 

[Hash and Bash]

Hello,

Yes I have filed self assessment for the last 5 years. As mentioned there has been no profits as I have invested everything back into the business (simply to have more stock, machinery, assets etc)

I presume that you have been using "Cash Basis" accounting for your self assessment?

If you were using traditional accounting, stock at year end would not reduce your taxable income/profit.