HI There
I hope you are all smiling an keeping safe during these distressing times! I am calculating the self employment payment for my self employed clients - I understand how it's worked out - that's simple enough - however, which figure are they using - i understand they say trading profits . The question is this....is this trading profits before or after capital allowances. To me, any profits after capital allowances are adjusted net profits. I have asked several of my accountant friends and we are all divided!
Replies (6)
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I would refrain from offering to calculate the payment for clients until after the guidance on how it will be calculated is published.
I don't think it's helpful to them or to you for you to try and guess it now, I would just point them to the government page detailing the measure and advise you'll let them know if you hear anything more.
I've been honest with clients by saying that we just don't know which figure the guidance is referring to.
My gut says it will be the taxable amount (adjusted net profit).
I very much doubt that HMRC have any more information than has already been announced- and in any case, no-one will be able to claim for some weeks yet.
So don't waste their time by calling.