I understand about disbursements and how (if they've been invoiced correctly) they do not need to be included in your vatable turnover, however, I have a question about self-assessment tax returns. If a company has say £12,000 worth of disbursements in a tax year, should the full turnover amount be declared (including disbursements) on the SE tax return, and the disbursements treated as costs to be offset, or should they come off to start with?
Turnover including disbursements - £92,000 minus Costs - £12,000 equals total profit - £80,000.
or should the turnover begin as £80,000.
I suppose to sum up the question, should all disbursements be disregarded from the accounts completely?