Self Assessment Newbie - do they want bank statements?

sarah_elton

Oookkaaayy.

I have a FT job, big company, pay tax PAYE, sorted.

In July I was approached by a publishing company, asking me to do some writing/editing in my spare time.

All along I've put a third of the cash aside for tax purposes, but now the workload has increased so got in touch with the IR. First of all, yes I am self employed (was hoping not but fair enough) and may be slapped with the £100 fine for late registration (depends if I make >£4k this tax year). That's ok - my own fault for putting off calling them.

Anyway, just some background as will probably be around asking lots of questions...

April will be first ever self-assessment, and I don't have a clue. Thing is, as far as I'm concerned it's just an extra wage, I have no costs*, I just want to declare it all as profit and pay the tax accordingly. First question is, do they require bank statements as proof of amounts received? I have my invoices as records. But the cash is paid into my personal current account, for which I cancelled paper statements as I have online banking. If they do, I need to reinstate them and get duplicates back to August.

Not sure I want them going through my personal account anyway.

* Should I make more effort and put things like my broadband bill down as a cost? I'd have it anyway, and just want to keep things very simple as I'm a low earner and not about to employ an accountant (though I work in a dept of 100 of them so may be able to get some advice...). But could I save a lot of tax this way?

bridiej

Probably best to list things like broadband, I certianly do and yes, I'd have it anyway but I pay more for a larger download limit due to business than I would have if I just used it for general surfing. Plus your expenses can be counter balanced against your tax liability.

Why not ask a colleague to give you a hand, or contact the Inland Revenue as they are very helpful?

Sorry I cant offer much more advice, I use an accountant as I havent a clue when it comes to self assessment.

sarah_elton

Thanks for the tips.

Was rambling a bit as only just got into this and things keep occurring to me...

Main question was about the bank statements as if they want them I need to kick off receiving paper statements again. Annoys me no one will ever accept an Internet banking though I understand why.

Savvy_Sue

I was s/e a few years ago, and likewise my invoices were paid into my personal bank account. I was never asked to show bank statements so unless things have changed ...

Also I would have thought that with Internet banking being so common they would accept a printout of your internet statement, wouldn't they? I can print mine from Smile if I want to.

bridiej

I print mine from the internet too, no problem.

sarah_elton

Oh I can print mine. Just when I've opened accounts, or needed ID etc, places only accept true statements, not printed ones. I guess because you could easily change details on there.

By the sounds of it though I won't need to worry so will leave it - and just get back dated duplicates if need be.

Thanks guys.

grumpyoldgit_2

You have registered as self employed - you should take advantage of that status and claim for expenses incurred in your work.
You use a computer, broadband, telephone, space. electricity, heating, postage, paper, ink as part of your activities plus probably mileage and wear and tear on your vehicle.
Keep a record of such outgoings which you can justifiably claim against income from your work - if you don't start off right you will have enormous difficulty later on - who knows where this will lead to?
Have a look at the threads in the tax saving forum there is plenty of discussion about this and links to useful sites etc
good Luck
GoG

sarah_elton

Thanks for the tips.

They email me work, I do it and email it back, so the only cost really is the broadband bill (after all, I could survive on dial-up otherwise ). Will check it out - surprised if I can claim the leccy bill etc since it's just my home one but wouldn't object.

I'll look into it all before April.

Savvy_Sue

You may not be able to claim all of any bill, but if you are working from home you can usually claim PART of electricity, gas, phone etc. Taxman will consider what's 'reasonable', given the amount your making on the business. Now you may know and I may know that if you weren't working you'd be at home anyway, so your bills aren't increased by the fact that you're working from home, but the taxman doesn't know that, IYSWIM.