Do I have to declare pph fees in my tax Return?
I am registered as self employed and I have to make my first tax return. I am also italian and I live in UK only since 3 years, so I am definitely not an expert about english tax system.
I have a doubt about pph fees.
Do I have to declare the total amount invoiced and then declare pph fees as expenses to be deducted? or I can declare directly the money I've actually withdrawed and that's it?
I mean, let say in a month I've earned £1000 from invoices, and then pph kept £55 as fees. so my actual income here on my account is £945, and I withdraw that amount and put it in my bank account.
do I have to declare only £945, which is what actually arrived in my pph account (and then in my bank account as well), or do I have to declare £1000 (which I actually never seen..) and then declare $55 as expenses?
I know it's probably very easy to understand, but I am a bit confused as I've not purchased anything so I'm not sure if the fees can be considered expenses I had, and I've never actually had those money. it seems to me more like I've asked my clients a payment considering that I was actually getting less and in my vision they've paid the fees, not me..
I hope someone will clarify this doubt for me, as I really want to avoid paying an accountant at this stage of my (just born) business.
Thank you for helping!
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