Timelines and knowledge very limited = HRMC + Job Seekers

Jive_Money

Help - I was made redundant 1 year ago, December 08. I started claiming job seekers in April 09 through stubbon stupidity.

Today I received my Unique Tax Code and have only just managed to register for my online self-assessment. It said up to 7 days for my activation pin to be sent taking me to the 21st January.

I set up a non-trading record label in August for copyright reasons. Whilst being on job seekers now non-contribution I have, on sporadic occasions, taken my 16 hours when opportunities have presented themselves. How do I account for this as I am self-employed and on benefits. The Job centre were no help when I spoke to them.

My problem is I now have 15 days to complete my first self-assessment and I am completely out of my depth. I need to get a accountant to make sure I file everything correctly and will have to borrow money to pay for them.

My rather long-winded question is what should I expect to pay for a self-assessment and based on me having a label do I need a music specific accountant?

Loopy_Girl

SA are dead easy to complete so I wouldn't bother with an accountant...unless you are raking it in, it's money down the drain (although it is tax deductable;))

Surely you have a note of all your income and business expenditure? And there is a question asking how much you have received in the tax year for various benefits and one of them is JSA.

Do everything manually on paper and then it's a simple case of transferring it online. If you ran the business from your home then don't forget to claim back expenditure for phone, heating, electric etc

Jive_Money

I think I am worried I would miss things and not correctly claim the right receipts back hence the Accountant requirement.

Also I have had conflicting information relating to self-employment and still being dole bound. The business (record label) is non-trading and my self employment has been security and DJing which I hear HMRC love to scrutinise.

I have barely managed to pay the utilities and eat, let alone rake any money in but my friends have advised me to use an accountant, although I see your reasoning. Am I just being paranoid?

healy

Jive_Money wrote: »

I think I am worried I would miss things and not correctly claim the right receipts back hence the Accountant requirement.

Also I have had conflicting information relating to self-employment and still being dole bound. The business (record label) is non-trading and my self employment has been security and DJing which I hear HMRC love to scrutinise.

I have barely managed to pay the utilities and eat, let alone rake any money in but my friends have advised me to use an accountant, although I see your reasoning. Am I just being paranoid?

There is a lot of guidance to help you both in written form and on the HMRC website.

You could get someone else to check it for you if you know someone who is self-employed.

Loopy_Girl

Jive_Money wrote: »

I think I am worried I would miss things and not correctly claim the right receipts back hence the Accountant requirement.

Also I have had conflicting information relating to self-employment and still being dole bound. The business (record label) is non-trading and my self employment has been security and DJing which I hear HMRC love to scrutinise.

I have barely managed to pay the utilities and eat, let alone rake any money in but my friends have advised me to use an accountant, although I see your reasoning. Am I just being paranoid?

Not paranoid, just cautious...I think the tax man puts the fear of god into any of us!!!

Essentially, ANYTHING that you have outlayed for the business (right down to the biro to sign the forms) can be claimed for. Providing you have receipts - or can prove purchase say in the case of broadband - can be claimed for. The SA for doesn't ask for a breakdown, it just asks for the expenses and you put a figure. I think this is where most people worry as they think that the tax man will be looking at this and demanding proof, and of course he can but, as I say, providing you have proof then you have nothing to worry about.
For example, I don't have receipts for the electricity that I 'buy', but I do have the bank statments showing my monthly d/d and I can show that a proportion of that was used for my self employment. Of course you have to be sensible about it and not make wild claims. For example if your elec d/d was £100pm and you were claiming to work s/e for 20 hours a month, then it would be unrealistic (and fraudulent) to try and claim back £99 per month. See what I'm getting at?

It's all about being sensible. Honestly, it takes about 10 mins to complete and at the end you have your answer. You'll probably wonder what you were worrying about!!

Don't over estimate your expenses but on the other hand don't under estimate them either. You are entitled to claim back everything you can and shouldn't be worried about doing so.

It's totally up to you of course but I really think it would be a waste of money. I don't even know how much they cost but I'm guessing they are not cheap. The site has tons and tons of info and they have a helpline and they are very helpful people.