Set up a profit and loss account for your business

Profit and loss reporting requirements vary according to how the business is set up.

For example, if your business is a limited company, the company will report its profit (or loss) through annual accounts and a Corporation Tax return. You also need to report your own personal income from the business, for example as a company director, on your Self Assessment tax return.

If you are a sole trader, you report your business income as part of your own Self Assessment tax return.

If your business is a partnership, the nominated partner must complete a Self Assessment tax return for the partnership. In addition, you need to report your own personal income from the business on your own Self Assessment tax return.

Find further information on Self Assessment.