Self assessment advice needed

sophisticated.

I'm a self-employed mystery shopper and I'm a bit confused with the tax assessment form. I am using the paper version simply because I prefer to write things down! I'd appreciate it if someone could give me some advice on how to fill it in. FYI, I have kept a simple excel spreadsheet which has calculated my expenses, income and profit. I know I can put things like paper, broadband etc in the allowable expenses, but this is my only income so I won't get taxed anyway. (If that makes sense? Trying to say I don't need to try and save on tax so want to keep it simple as possible!)

This is what I think I need to do on the form

Q8 - Your turnover - the takings, fees, sales or money earned by your business
Is this where I would put the total income figure? (Ie excluding my expenses)

Q20 - Net profit
Obviously where I put my profit (£23.24...wow!)

I can't work out where I am supposed to put my expenses? My expenses is stuff like paying for meals, drinks etc on the mystery shopping visits. Am I able to put it in box 19 (Total allowable expenses) ?

Thank you in advance for any help!

roger_c

I take it you are talking about this part of your tax return:

http://www.hmrc.gov.uk/forms/sa103s.pdf

If so then:

Q8 = turnover, that is gross fees received
Q19 = total allowable expenses
Q20 = net profit (Q8 - Q19 = figure to go in Q20).

With regards to paper and broadband expenses, you can only claim the part of the costs which are wholly and exclusively used to generate your turnover.

Also just to note, if you have any investment income (bank interest included) this should be shown on the main part of the form, on page 3.

Hope that helps you a bit.

sophisticated.

Thank you very much roger_c for clarifying that information for me, that page was the one I was referring too. Thanks also for the heads up on the interest, I have an ISA etc and didn't even occur to me! I don't think I'll bother claiming for paper broadband etc.

fengirl_2

You have to include all your expenses incurred in earning these fees or it wont be a complete return. Also, dont forget travel costs. To me, as an ex Inspector, a figure for income only with no expenditure would flag up that not enough care had been taken over this return.

Ste_C

sophisticated. wrote: »

Thank you very much roger_c for clarifying that information for me, that page was the one I was referring too. Thanks also for the heads up on the interest, I have an ISA etc and didn't even occur to me! I don't think I'll bother claiming for paper broadband etc.

Remember that Interest on ISAs is tax free though so you don't need to put that one down.

sophisticated.

Ste_C wrote: »

Remember that Interest on ISAs is tax free though so you don't need to put that one down.

Thank you

fengirl wrote: »

You have to include all your expenses incurred in earning these fees or it wont be a complete return. Also, dont forget travel costs. To me, as an ex Inspector, a figure for income only with no expenditure would flag up that not enough care had been taken over this return.

Fengirl, I have entered the figures on the form like roger_c suggested (ie with total expenses in one box rather than entered seperately.) I assumed this would be okay as it says on the form "If your annual turnover was below £30,000, you may just put your total expenses in box 19, rather than filling in the whole section" ? Please correct me if I am wrong.

fengirl_2

Yes, you are correct to include expenses as a lump sum, but they should include all expenses.

James123_2

No need to second-guess stuff like this. There's some great advice from others here anyway. However, as your case is fairly straightforward then make an appointment with your Inland Revenue people, take your figures and they'll do the donkey work for you - that's what they're there for. So long as you have the information you've described, they'll only be too happy to help. I ran my accounts in front of the tax man for 12+ years when I was self-employed.