Is it tax deductible if I pay myself?

Is it tax deductible if I pay myself?

This is possibly the most common question I get asked by self-employed people on a daily basis, but there is a simple answer…If you are a sole-trader then you cannot claim the cost of your own pay.

So let me explain in more detail:

I totally understand why people get confused about this since you can of course claim back the cost of hiring other people’s services for the purpose of your business, e.g. if you hired a graphic designer to make you some business cards or if you ha repairs done on your office by a builder etc etc.

So it is totally understandable that people may think that you can also claim your own payments for doing services for your self-employment work, however this is not the case.

In simple terms, you’re self-assessment tax return is all about your income and you’re taxed as a sole-trader, so it’s not possible to then claim back what you pay yourself.

I hope that helps and if you want anymore information just contact me at info@zlogg.co.uk

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