Are expenses classed as income ?

Expenses are not considered to be income. Income refers to the money that you receive in exchange for the work you do or the goods or services that you sell. Expenses, on the other hand, are the costs that you incur in the process of earning that income.

For example, if you are self-employed and you earn income by providing consulting services, the fees you charge your clients for those services would be considered income. The costs you incur in the process of providing those services, such as the cost of travel to meet with clients or the cost of materials or supplies, would be considered expenses.

In general, expenses are used to reduce the amount of income that is subject to tax. By claiming tax-deductible expenses on your tax return, you can reduce the amount of income that is subject to tax, which can lower the amount of tax that you owe.