Help with SA (sorry!)

thechippy

Hi,

I would be very grateful of some help with my SA, sorry for asking at the last minute!

An accountant carried it out for me last year, but this year I just can't afford it and so am cutting back.

There were some mistakes made on last years return and I'm wondering if they can be corrected on this years.

1. An invoice of £480 was never paid as the company went bust, but this was left on the return and never entered as a bad debt and another for £320

2. I paid £460 in insurances (sickness), but he accidentally only entered £46 for the year.

3. I purchased a vehicle for my work when I started in 2006 and he allowed £1000 against it (I paid £2300), how much depreciation do I allow this year and where do I put it on the form?

4. My tax bill for last year was £3k something, I paid them £1500 straight away. I recieved another bill in june/july for about £1500??, but have paid them nothing since due to having a bad year. Do I have to take this into account on the form somewhere, or will the tax office do it somehow?

Your help is much appreciated.

thechippy

Bump......:o

soolin

Personally with so many things happening I would suggest you find an accountant. You mgith think you are saving money by doing it yourself but not if you get it wrong it could be expensive.

You are running out of time rapidly though, so get it done quickly as you don't want to add penalties to all that as well.

Dealwithit

http://www.hmrc.gov.uk/sa/complete-self-emp.htm#1

fengirl_2

In answer to your queries:
1. Bad debts can be included in the year they are written off, so you can include them this year.
2. Sickness insurance is a personal expense, so the 46 should have been added back, giving a nil deduction. You could come clean and make an amendment to the previous year, but I dont think its worth the hassle.
3.You need to claim capital allowances. The allowance for 06-07 would have been 1150 and he has disallowed 150 for private use. You need to ask him for his computation to allow you to carry on with this claim on the proper basis.
4. You seem to have paid all your tax for 06-07, so you dont enter this on the form.

mrsmyagi

I agree with Fengirl except for on item 4 - as you said your bill was £3k and you've only paid £1500?

thechippy

mrsmyagi wrote: »

I agree with Fengirl except for on item 4 - as you said your bill was £3k and you've only paid £1500?

Many thanks to all for the help so far.
Yes, my bill was around £3k, but I've only paid £1500 so far. Do I have to put this in the form somewhere, or will the tax office do it?

Thanks in advance.

susie81

I need to start by saying I work in tax and accountancy but have to obviously include a disclaimer. I always recommend you see a accountant/tax adviser who knows your individual situation better.

The bad debts can go in this year and are an allowable tax deduction as they are specific write offs.

The sickness insurance I would treat as a personal expense unless it is key man insurance which is an allowable business expense. I.e. the business can't continue without you. Strictly your prior year return should be adjusted - would result in a refund due back to you (not considering you owe money per a later point). You could probably get away with including it this year but HMRC may compare it to prior year and wonder why it's gone up by nearly a grand. It's your decision obviously.

I agree with the above re the vehicle. Was it a van you purchased? If it was a car the wrong capital allowances were claimed. Assuming it was correct you can claim an additional 25% writing down allowance this year (=£287.50). 25% of £1150. You then have to decide if you need to disallow any private use. On the same basis as the previous year this would be a disallowance of £37.50. The figure you then put in the capital allowances box is £250 as an allowable deduction against your taxable profit.

As regards your payment. I presume you were required to pay payments on account for 2007/2008 hence the tax bill in July.

Without looking at it closely I cannot comment but, you will have been incurring interest on the £1500 you haven't paid. It will need to be paid now along with any additional tax due for the tax year. You will probably also be required to make payments on account for 2008/2009 which are half of your total tax liabilty for 2007/2008 which is also due now, and half your 2007/2008 tax liability due in July. They go towards your 2008/2009 tax liability. You have to pay in advance.

I've tried to help where I can and have probably confused you completely now but I really would suggest you see if your tax adviser can help you prepare your return. They're not easy to do if you don't understand the ins and outs of what tax to pay and when. Or get a book on basic tax to explain to you how it all works. By paying them it will probably save you money in the long run - although they may be hard pressed to do it now. I know I am flat out with the returns at the moment!!

Good luck

susie81

Forgot to say.

We do all our returns on the computer but I've just looked through the return and I can't see a box for you to put on the return what you have already paid. You just need to be aware that you still need to pay it over.

RebB

Hi

I want to claim mileage allowance relief, due to the fact that my company only pays me 12p per mile. This is the first year I've had to do a S.A. form - previously just filled in P87.

I have my figures worked out - what i have been paid in expenses, and therefore what mielage allowance I'm owed, but have no idea where i put this info!!

Tax office haven't been much use -where they told me put it ended up with me owing tax! Please help

thechippy

Many thanks Susie,
I'm very busy this week, so I'll take your advice and use an accountant. Ok, I'll have to suffer the £100 fine for late submission, but the accountant will probably save me that anyway.