Summary
Description
Self Assessment tax categories and the SA103F
Sage Sole Trader helps you record your business income and expenses and categorise them for tax purposes.
Your categorised transactions help you complete the Self Assessment form (SA103F tax form) for self-employed individuals.
You'll find the SA103F within Reports.
At the end of the tax year, you'll have a completed form ready to help you or your accountant file your return.
Expenses if you're self-employed
If you’re self-employed, your business will have various running costs.
You can deduct some of these costs to work out your taxable profit as long as they’re allowable expenses.
EXAMPLE:
Your turnover is £40,000, and you claim £10,000 in allowable expenses. You only pay tax on the remaining £30,000 - known as your taxable profit. Allowable expenses don’t include money taken from your business to pay for private purchases (non-allowable expenses).
Allowable expenses
Allowable expenses are those you need to spend to run your business. These are deductible against your income when calculating taxable profit.
Examples include office costs, staff wages, and travel expenses.
Read more: Deduction categories for allowable expenses.
Non-allowable expenses
Non-allowable expenses (also known as disallowable expenses) aren’t deductible against your income when calculating taxable profit.
For example, non-business related expenses such as personal clothing, fines, and travel costs between home and business.
It's important that you accurately categorise your expenses as allowable or non-allowable. This ensures compliance with HMRC and helps you avoid any penalties or fines.
Read our blog on sage.com/blog/allowable-expenses-self-assessment-tax-return.
Africa
Asia
Australia
Canada
France
Ireland
Kenya
Nigeria
Portugal
South Africa
Spain
United Arab Emirates
United States
Germany