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[MSE Martin]

30 September is the last day to send in your self-assessment paper form and be 'guaranteed' the Inland Revenue will calculate your tax for you, ready for payment on 31 January. Tax Accountant Tony Tesciuba, (who also happens to be my Uncle) has offered to answer your basic tax queries.

Why's he doing this?

First because I asked him to, and he's a site user, and second because I promised if he does I'd put a link to his site www.tesciuba.com in here!

Where else to get help?

If you're looking just for form filling help for the self-assessment form, then just call your Tax Office if it's during office hours (you can find the number online here) or, during evenings and weekends, call the Inland Revenue Hotline on 0845 9000444 (or +44 161 931 9070 from abroad).

IMPORTANT! What to ask about?

Any basic tax questions about small biz or personal tax. Obviously if it's hugely complex then it can't be done. Also don't put any bank account/overly personal details in your question as it can be read by all.

Before asking your question it's well worth reading the previous answers Tony has given.

Previous Articles: Taxing Times 1, Taxing Times 2, Taxing Times 3, Taxing Times 4, Taxing Times 5

As general guidance questions should be no more than a paragraph long.

How long will Tony be doing this for?

All questions should be asked by the end of play on Tuesday 3 September. At that point this thread will be closed.

When will I get the answer?

What we'll then do is compile all the questions together into one Q&A article, published (as long as there aren't too many questions!) as soon as possible, probably a week or so from the closing date.

TO ASK A QUESTION SIMPLY CLICK REPLY.
PLEASE ONLY PUT QUESTIONS NOT COMMENTS IN THIS THREAD

[catshark88]

I run a sole trader business as a photographer at equine events. Can I claim the cost of my babysitter as an expense whilst I am at an event? I would not be able to do the job without someone to look after my baby.

Many thanks.

[Fordy5]

I worked for a total of 4 months as an IT Contractor in Dublin during 2005. I paid tax on my earnings following a Tax Return calculation made by the Management Company looking after my affairs, in Oct 2006 for their Year 2005. I was sent my first self assessment Tax form in April 2006 following my return to work in the UK. I unintentionally failed to declare any details about this overseas working on my tax return, mainly due to my lack of understanding of the process and having paid the tax in Ireland already. Does this need to be declared retrospectively ? Will it have a beneficial or detrimental effect if it is ? Thanks.

[aussiegazza]

Hi Tony
I have recently started working as a freelance Tour Manager and I invoice travel companies for my services for running day trips both within the UK and longer trips to continental Europe. I am registered as self employed.(sole trader)

My question is/are: Can I claim any/all of the following as 'claimable expenses' without a significant risk of question?

1.Meals (and beverages? alcohol?) whilst away from home on UK trips (ie lunch in Bath on a day trip)

2 Meals/snacks/drinks whilst away over a weekend or longer as above (eg lunch/dinner over 3 days in Paris)
Breakfast is usually covered as part of the accommodation package supplied to me/passengers.

3.The cost of train/bus/taxi fares to meet the coach which takes me on these trips?

4. Entrance fees to museums/monuments etc. on the continent/UK? ( I need to research these before offering advice to passengers on what to see/do etc.)?

5. Travel guidebooks, magazines, subscriptions and maps- (I need these to research and design microphone 'spiels' whilst guiding passengers on the coach and on walking tours?

6. A percentage of my electricity, council tax, rent, ISP, gas, landline, standard monthly mobile fee (calls are claimable via the company) and other household bills etc as I do most of my research and gain bookings via my laptop at home.
If so how much would be appropriate?
(I use approx 10% of my studio apartment for storing documents/office supplies/research library etc. and my laptop is on my 'kitchen table')

7. One company is introducing a meal allowance soon-do I need to record this meal allowance as income for tax purposes?

All accommodations are paid for by the companies I work for.

Thanks

[PupMitchum]

Hi I am a dual resident being a UK citizen with Spanish Residency. I have never worked or paid Tax in Spain since moving there 4 years ago. I am now working 2 weeks out of every 4 in the UK on a self employed basis since 1st April 2007. Can I claim my flights to and from Spain as travel expenses, or include any of my Spanish expenses such as telephone costs etc?

[MALC83]

I am a bank pensioner and all my income including my pension is taxed at source. The Revenue have just advised me that I have underpaid tax (PAYE) on my pension over the last five years of almost £1000 and they have changed my tax code to recover this over 12 months reducing my income by £80 each month. As they knew the amount of my pension and they set the allowances by tax code surely this is their error. I have put this to them but they do not answer my correspondence. What can I do?
Thank you.

[Linguistic Chimp]

Hi,

I hope you can help me. I have a full-time, normal office job where I pay PAYE tax and NI contributions on a salary of £26,500 .

But in order to earn extra income to pay off my debts (it's the only way it's going to happen) I have recently started freelance translation. So far I have had 3 jobs, totalling £480...

I'm hoping to get other similarly valued jobs as the client who I have done this job for is impressed but I don't know where I stand re tax.

Can you tell me what I should/need to do as regards the IR and how much tax or NI contributions I may be asked to pay?

Thanks!

Linguistic Chimp

[redissue]

Hi Tony,

We are emigrating to Australia in 6 weeks, and as far as I can see, there is nothing as great as the MSE website over there. As such, can you simplify what we should be doing about our UK shares, bank accounts, (I won't mention pensions as that is a book's worth I gather) UK tax etc. I realise that this is a bit of cuff but if you could offer any advice then that would be great.

[revenant]

Hi Tony,

I am self employed working with computers and have been happily filling in my returns for the last few years and now I actually have something a little more complex to fill in than previously and would appreciate SA form pointers for this:
I have had a home office (nice log cabin actually) built at the bottom of my garden. I have had an electricity meter put onto the supply meaning I should be able to claim the full and true cost of the power I use for the business. I am not worried (much) about capital gains, as a wood structure it will actually deteriorate as time passes thus having a negative effect on value and I should be able to claim for future upkeep. Besides if I ever move I should be able to take it with me (at least in theory). It has been suggested that I make sure I make use of the cabin whenever I have a BBQ to negate exclusive use triggering CGT as well.
1. Can I claim the full cost of it, the materials for the cabin and the fitting out?
2. I believe I could claim 50% in the first year and the more in subsequent years, is this until the whole amount has been claimed or until a certain number of years has passed?

Many thanks

[rrobbo]

Tony, I'm a UK citizen and UK based (Northern Ireland). I'm an IT consultant and just about to start up independently. I'm in discussions with a US company to provide them consultancy on an hourly basis (possibly fixed price basis in the future), which can all be provided remotely. I won't need to have personal access to the funds in the short-term (if there wasa benefit in leaving it off-shore).

Do you have any initial guidance about how best to organise my affairs for this scenario? Do you know any companies who specialise in this area?

Thanks, Richard

[balajo]

Hi there,
Last year I started my own LTD. The paperwork is atrocious but I have managed. However, during the 206-2007 year I also worked overseas. I would like to declare non domiciled so I don't have to declare the monies and avoid double taxation. Is it better to not submit my SA by Sept 30th 2007 and do so closer to Jan 2008? What is the HMRC approach to these kind of issues should I expect any difficulties or hard questions from them? Second related question is that I am again doing work abroad this year and the company agency I use made me fill out a leaving UK form which I feel conflicts with my current ltd company operations since I can very well work (although currently there has been no activity since I started working with the agency) under my ltd company at any time. What are the implications?

[laprincesashazzy]

I seem to have done something very foolish. In my anxiety to do the right thing I told the tax man that I was starting self employment from 1st April, as I was being made redundant from 31st March and didn't want a gap between the two. I then went on holiday and didn't actually start trading till late April. Now they sent me a tax return for last year as I was technically self employed for 4 days. I didn't earn anything last year apart from my job, so do i only need to fill in the details from my P60? Or do I have to do the whole form?

[HellsBells63]

Hi there.

I am a sole trader and wonder what's the best way to deal with vehicles. Can I keep my vehicle as private and pay myself and any staff mileage allowance? If so, do I need any petrol receipts for me and any staff? As I understand it I don't as I can only claim a fixed amount back in VAT (if I become VAT registered) - is this still the case and what is the fixed amount?

Thanks

[onamission]

i have retrained as an acupuncturist over the last 3 years. can I claim my training fees and/ or travel costs as part of my new business set up (pre planning)? I have received conflicting advice on this. btw I continued to work full time PAYE (34k pa) during this time.

I rent a therapy room weekly and plan to have a "home base" from Jan 08 - a therapy room in my house. so can I claim for the room /electricity/heating as it would be the business address - how do i work out what i should be claiming for this?

Would it be simpler to have a mobile phone just for the business use and claim that rather than a % of telephone on landline and personal mobile?

I understood that home to rental room is like normal commuting so I cannot claim travel expenses for going to my rented room?but now i will have a permanent room for the business at home will that change anything for next year?

finally can I claim dry cleaning of my white coats as a business expense?

thank you for giving of your time.

[ribenagirl]

Hi Tony,

Is there a limit on how much NI you have to pay? I work for the NHS as a therapist (so pay standard employee's NI there), but have also started doing some private work, where I am paying class 2 NI plus at some point class (is it 4?) NI. So I am paying 3 seperate lots of NI...is there any limit on this!!

I'd also like to know about filling in tax returns - when I rang HMIT to tell them I was starting up in private practice, I blurted out 1st April as a start date, but also in reality didn't start until later that month but they have taken me at my word and I'll also be getting a tax return although nothing to put on it....

lastly, please could you give me some guidance on claiming back mileage on my personal car for business use in my private practice? I am guessing I can claim something but not sure how much? Many thanks, Ribena xx

[Millie's Mum]

Hi

This is probably really simple but the explanation given by the Revenue in the help box is confusing.

My DH is self employed and sometimes works under the CIS scheme, should the total amount in box 3.29 be the amount he received/invoiced (ie a certain amount of it is after tax because of CIS, most of it is not) or the full amount he would have received/invoiced if not for CIS?

The explanation from the Revenue is "Enter in box 3.29 the amount of your turnover, if it includes income from which tax has been taken off (excluding deductions made be contractors on account of tax)"

I can intepret that that either way!

[beanokid]

I am a sole trader, working part time on PAYE and freelance training consultant. I am about to retrain to become a driving instructor, can I claim against tax for the cost of this retraining? Thanks

[swindondave]

Hi.
I registered as Sel Employed on 16 April 2007 as I work (2nd employment) for another company who requires me to be self employed (they dont tax the money I earn from working for them). When do I do my first Tax Return?

I am Class II N.I. Contributons exempt.
I will be earning about £1,500 per year with this company as self employed. I also work full time which is taxed and NI'd!

Thank you.

[NJ10]

I am confused! Do I need to do a tax return for the year ending 5/4/07 or not? I was made redundant at the end of February and received a lump sum. I registered as self-employed on 1st March 2007. I made a loss in the first month. I have not been asked to do a tax return for the year ending 5/4/07. The IR said that as I had only been trading for a month then I might not be asked to do a return and that it would be included in next years. Is this correct? Would it be better for me to do a return anyway particularly as I made a loss?

Thanks

[killa47]

Hi Tony
I am wanting fo file my son's return online but he is living overseas at present and has lost his P60. His last employer promises to send a Statement of Earnings but hasn't. Is there any way we can ask the Revenue to confirm his P60 earnings or can we complete the return WITHOUT his P60 earnings. The return has to be done because of unearned income levels.
Solution would be appreciated.