Can I claim business expenses if my small self employed business income is under the £7400 tax threshold?

Do you have any other income? Interest, rental income, social security allowances etc? How are you living on £7400. In general if you expect to conitnue this business in the future it is best to claim all that you can since loss relief can be carried forward. Go for it

It doesn't matter what your turnover is, you can always claim expenses against it as long as they are legitimate and allowable under tax rules.

Your return should always be as accurate as it can be, then you have no worries if there is an enquiry. Keep the documentation that shows that the expenses were incurred - bank statements, invoices and receipts.

If you find you have made a loss, you can offset your loss against some types of income (e.g. employment income) in the same year to minimise the tax you pay, or you can carry the losses forward to be put against future self employment profits for the same business when you find you are going to pay tax because of them.

HMRC doesn't expect to always see profits in the first few years of business, but it will expect you to be able to prove that it is a viable business if you continually make losses. Hopefully, that will never be a problem for you as it sounds like you're doing well.

As per other answers if you're below the tax threshold you won't pay tax so therefore won't get any benefit from claiming business expenses. However, worth talking to an accountant as for certain expenses you may be able carry them over to next year and offset them against next year's tax (assuming you earn over the threshold next year).

Hi,

If it is the £7,475 (this years personal allowance) then really there's no need. Your liability will be nil.

Assuming that you have kept some records that show how you spent the money earned this will just further reduce your overall annual profit.

Noting that this figure is relatively low, do you have any other income? Investments, other employment etc.

If so then you will need to bring this figure down as much as possible to reduce your liability. Don't forget, working from home, cars etc can all carry tax allowances so do check!

God luck!

You offset legitimate expenses against income.

There is no tax advantage if you have a profit below the tax threshold though.

Yes, you can claim any business expenses regardless of what your total income may be.

Please yes, show the facts - it all adds to your profile. If you show turnover but no expenses you are raising the odds of getting reviewed.

Fill in the boxes accurately. In five years if you suddenly show new expenses you WILL get a visit.

Yes, but if are a non-taxpayer you won't get any benefit.