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Sam, Accountant
Category: Tax
Satisfied Customers: 15604
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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I have a very simple question. I am a sole trader and

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Hello I have a very simple question. I am a sole trader and normally claim expenses when I fill in my self-assessment. Is it mandatory to file expenses, or is it entirely optional?
JA: Have you talked to a tax professional about this?
Customer: No
JA: Anything else you want the Accountant to know before I connect you?
Customer: Well the reason is I am looking to buy my first house...and I am aware that the mortgage lenders may take into consideration profit amount (after expenses) as income rather than before that is the amount on the tax return. So would it be more beneficial for me (even though I will end up paying more tax) for the purposes of buying my first house and getting a mortgage, to not include expenses on this next tax return to boost my income amount
JA: Which tax year are you filing for?
Customer: It will be for the current financial year 2019-20 once it is over.

Hi, Sam here , one of the UK tax Experts here on Just Answer, thank you for your question and I shall reply shortly


You must claim expenses as that is then a true reflection of your accounting year and more importantly you are borrowing with the accurate net income as to do otherwise is in breach of the bank and building society regulations as falsifying or manipulating income to be able to borrow more - and in these times of cautious lending even more important

I am sorry to not to be able to endorse your thinking



Customer: replied 6 months ago.
Thank you Sam for your reply that’s very helpful. I was in no way trying to be fraudulent which is why I wanted to ask the question and make sure that I wouldn’t be breaking any regulations. It is what it is and I’m happy to report all of my expenses. Many thanks,

Hi Richard

The fact you asked the question clearly shows your intent to get this right - but to proceed would then fall within that position sadly. So yes do claim the right amount of expenses but note that any business equipment (capital allowances) you can carry forward and not claim this year - I can advise further if this applies to you as its quite complex with the introduction of annual Investment allowances !



Customer: replied 6 months ago.
Hi Sam.No thanks that’s all fine, I am happy to claim those expenses as well because it will only end up accumulating over time. I’ll just carry on as normal and report all expenses In the same was as I did last year. Thanks for your time and assistance.Best regards,

HI Richard

You are very welcome - if that is all you need, it would be appreciated if you could rate me for the level of service provided, or click accept



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