Purely looking at the business; Capital Allowances / Balancing Charges could subsequently change the tax outcome as could private use add-backs. However, it is the person and not the business that is taxable unless it is a limited company.
The main thing, that would determine the answer whether there are tax free allowances or not. What other income had he/she in the year and what rate of tax was paid on each source? Take a look at pages 2 and 3 of the core Self Assessment form for what other sources there may have been.
Could the business support drawing £16k, was there enough capital from previous years for this to happen, or is the client drawing from this years profit?
Hi, you will only know that by completing the tax return.
Include the accruals so that the accounts are accurate. Do the tax computation which will give you the self employment figures to put on the tax return.
Include all other income for the year. e.g rental income, employment income, bank interest and so on.
Calculate what tax is due, less any tax deducted at source which will show if they have tax to pay or are due a tax refund.
