Small Business Loans

Thursday, July 15, 2010

In business, my expenses are offset against tax owed to HMCE, if my expenses are more then the tax owed?

what happens to the remaining expenses?
Your expenses are not offset against tax.



Assuming you are self-employed (ie not a ltd company) the basic procedure is that your taxable profit is your total income (ie sales) less your allowable expenses (eg the cost of buying stock, wages, rent, utilities etc) less capital allowances (ie the fraction of the cost of capital purchases that you are allowed to deduct for the year).



If your expense and capital allowances come to more than your income, the

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