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[MSE Martin]

Thanks for the questions everyone, the answers will be in an article linked to from the weekly email in the next couple of weeks

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

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 Sunday 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

[Arthur22]

I am a self-employed sole trader. I currently have two main records for my income, one accounting for every payment that went into my bank account (who paid me the money, deposit no. etc) and one record which lists income by the payee's name.

Does this sound acceptable? Are there any other records which should form part of my "accounts" (apart from original documents such as bank statements, receipts etc).

Thanks very much for your help.

[kuniform]

I'm a registered self employed sole trader. I'm expecting to make roughly £17,000 for this tax year. I'm a computer programmer so I don't buy or sell stock and have no need to make large investments in my work.

I was wondering whether it is still worthwhile to incorporate a limited liability company? Since I believe dividend tax is only 10% above £2,100 and corporation tax is currently nil, would I save money buy paying myself through dividends?

Thanks for your time.

[fbs_4800]

I'm a 23 year old Police Officer and I've never ever filled in a tax return or anything along those lines - I've always merrily (well, not merrily really) paid whatever tax they've set me and grumbled about it when I got my P60 at the end of the year.

I also buy and sell occasionally on eBay - does that have any impact? It's usually only a few hundred pounds a year - and the profit I make per item is no more than a fiver normally.

Do I need to self assess or anything similar?

I have a vague recollection of receiving some sort of form from the tax man this year - but I filed it and I can't recall what it was... :-\ (Shameful I know - but I'm sick of paperwork...)

Can you (or anyone) please advise what I should be doing?

(I do recall being told I can ask for all sorts of tax allowances as a Police Officer as well - but no-one I work with seems to be sure. How organised we are...)

Cheers!!

[walkerlyon]

My Mother died earlier this year (21/3)and my father (age93) has received a tax assessment for 2005/2006 that has removed any reference to married couples allowance.He has already lost his higher personal allowance as his income is about £24K. The loss of Married couples allowance for 2005/2006 seems unfair as my mother's death only occurred about 3 weeks before the end of tax year. Is it correct. Thank you. David

[Rhiannon]

Who has to complete a self assessment?? I know this is probably a bit obvious, but there's nobody around to tell me whether I need to or not??? Thanks!!

[katykitten]

i send all my business info to my accountant around about this time - is the deadline the same for my accountant i.e. september or is this not classed as self-assessment, aslo what are reasonable fees for this service - my books are reasonably simple but my accountant puts his fees up every year for the same amount of work, finally - can you recommend a good tax-information book for small businesses so i can ensure im claiming all that i am entitled too (and maybe some more Many thanks for this -jan

[kfh ki eh]

I am a higher rate tax payer.
1. Do I need to complete a tax return?
2. What happens about the tax on my savings?
3. My wife does not pay tax. What happens about tax on interest earned in our joint account?
4. How does paying tax at the higher rate affect my personal pension payments and should I be doing something about this?

[starlakid]

Me and my boyfriend have recently started giving music lessons from our home. We are earning way under our tax paying threshold but I'm not sure if I still need to fill in a Self Assessment form. We've set up this 'business' partly out of financial desperation and as such have had no advice from anyone about what we need to do about paying tax. We do keep records of income and expenditure though.

Thanks

Starla

[Marty62]

Dear Tony
My main income is from examination marking for which I am taxed at the standard rate and have to claim back overpaid tax at the end of April each year. I also receive some income from supply teaching and this is counted as my main employment so I am not taxed unless I reach the threshold (which I don't). Would I be better to register as self-employed? Also how do I find out whether I owe money for N.I.? I tried to contact DWP last year and they said they would be sending out details but they never did.

[bostonboy]

As self employed when do Class 4 contributions cease to be payable. Is it in the accounting year in which you reach 65 or is it the first full year after ones 65th birthday.

[piwi]

Hello,


Thanks for the help offered!
Here is my question:

I am a salesperson, with a basic and bonuses based on how much I sell.

My basic is not very high so I don't pay much taxes on it.
But the commissions are pretty high and I usually get taxed around 40 - 50%

How could I be less taxed on them?
Would making a Ltd company invoicing my employer for my services (commissions) be more profitable for me? While still being an employee of my actual company to get my basic.


Cheers,
Pierre

[yezdi]

Hi,
I am a high rate tax payer. Last year I had gift-aided £1200 to a charity and I wrote to the taxman to get 18% back. They did give out a refund but I think it wasnt calculated correctly. What they did was to simply raise my high rate tax band by £1200. I think they should have raised it by 1200 * 100 / 78 = £1538.
Please advise,
Thanks.

[drenton1]

Hi,

I have entered my details for my full-time job, and the system has calculated I owe HMRC some money. This figure is exactly what my daughter receives for Tax Credits - have I missed a figure out on my form?

Thanks,

David

[nunovalente]

Hi Tony,

Many thanks for answering these questions - now I have one for you.

I have just returned to the UK from working abroad for four years, in various countries which have tax agreements with the UK. Now I realise my salary cannot be taxed for what I earned abroad, but what happens when I start my new job in a few days? Will I be hit hard by the tax man? Do I have to pay a year of tax for the seven months I am back in the UK working?

On top of this, I do some freelance work. How do I go about paying tax on this? With my salary from my normal job standing at 32k, when do I go over the threshold and on what will I have to pay 40%?

Thanks.

[villeroy1502]

Hi,

I'm a sole trader, and I've done some work off shore(Guernsey) - & paid in sterling cheque. How much (if any) do I have to declare?

Many thanks

[hobbesandco]

I am a base rate taxpayer. I bought US and UK shares last tax year (outside of an ISA). Will I need to pay tax on dividends?

[Mike Murphy]

I have a full time job as a college lecturer earning £30,000 and have also been gradually building up freelance 'planning application and building regulation application' jobs into local authorities for a local company.

At first I did a few jobs as favours for family and friends but now I am being 'paid' a fee for doing these jobs. I realise I will have to inform the tax people but how do you advise I go about this.

I have also had to buy large items such as a large format printer as well as other surveying items and advised to buy an indemnity to be able to carry out this work. Can you advise please?

Many Thanks,
Mike

[Darrenwilliams]

Hi, I have been preparing to be self employed for some years now. As a result I have bought equipment over 8 or 9 years, most is second hand. I do not have receipts for the goods, can I put a value to these items and claim them against my tax now that I am self employed?

Thank you

[truebrit]

I am 66 and retired but have the opportunity of a part-time self-employed job paying around £200 pw on submitting an invoice. What bureaucratic hurdles am I likely to encounter, do I have to register with somebody, how much tax am I likely to pay (I draw a Govt pension of under £90 a week) and can I offset any expenses against my tax liability? Thanks in advance.