Equipment and tools: what should I enter as profit?

A high-level guide to equipment and tools costs and why your final profit number may differ from cash spent.

Profit is not the same as cash spent; rules can affect your final figure.
Use this tool for planning and verify official treatment when filing.
If unsure, focus on producing a consistent annual profit summary.

Why this topic is tricky

Large purchases feel like an obvious cost, but tax treatment can differ from day to day expenses. That can change the profit number you enter for the year.

What to enter

Enter annual profit after allowable expenses as you intend to report it. If you only have bank outflows, reconcile to a profit summary before relying on an estimate.

Common mistakes

Assuming every purchase reduces profit in the same way, or mixing personal purchases into business costs.

Not tax advice. This page is an educational guide. For official rules, verify the sources below.

Open self-employed calculator How this is maintained

Last updated: 2026-04-20

FAQ

Do I need to itemise purchases in this tool?

No. The tool only accepts profit.

Is this the same as advice on capital allowances?

No. This is a simplified explanation. Verify the official rules.

Where should I check the official guidance?

Use GOV.UK guidance for expenses and capital allowances.

Sources

For official rules and definitions, verify with the references below.