Forum

• # 82186
• Sun 22 Apr 2012 03:56 PM

Hi

My client is self employed and claims working family tax credit.  He has been asked for his profit figure for the year and I am unsure which figure they require.  Is it the profit figure from the profit & loss account?  If so, is it the figure before or after the year end adjustments for depreciation etc.  Or is it the net business profit for tax purposes that is arrived at on the SA103F page 3?

I would be very grateful for any help on this matter.

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• # 82189
• Sun 22 Apr 2012 06:38 PM

http://www.hmrc.gov.uk/taxcredits/start/claiming/income-hours/self-employed-income.htm

Looks like profit on tax return.

Regards

Andrew

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• # 82199
• Mon 23 Apr 2012 07:25 AM

Hi

As someone who claims tax credits I can tell you the figure that I am asked to declare for self employment is the pre tax profit, it is the same as you declare on the tax return for self employment (and they do compare the two to make sure there isn't a mis-declaration).  If your client has made a loss then the self emploment figure is declared as zero and the loss can be deducted from any 'other' income (ie interest earnt and dividends).

Lucy

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• # 82208
• Mon 23 Apr 2012 11:20 AM

Hi Lucy

I had looked on the HMRC site, but was still not entirely sure which figure it was, you have clarified it brilliantly.  Many thanks for this.

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• # 82209
• Mon 23 Apr 2012 11:27 AM

Thanks for the Link Andrew, I will take a look.

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