Once we have received all of your information (please see How do I file my self-assessment tax return?) we calculate based on your income, minus your expenses to gives us a total profit.
For example if you earned £15,000 in the tax year 2019/20 this is how we would calculate it; Total income; £15,000 minus expenses; £2,000 equals total profit; £13,000
We use the profit to work out how much tax you owe to HMRC for the tax year* and then we send you a copy of the draft for your approval. Once you have confirmed the draft we forward it to HMRC to get it processed. This can take up to 4 weeks for HMRC to process.
*If you are under CIS and have been paying tax throughout the year you may be eligible for a tax rebate.