Tax Return Help - complete novice

BooWhitey

My Husband went self employed in Jul 2008, was unemployed but not claiming from March to Jun 08. Up until Apr 05 09 he earnt £14156. I have to complete his self assessment form and I have no idea where to start. I've registered him onlne and have all the login stuff for that. But I just don't understand what figures I need to put where!

I've got all his bank statements and invoices (where do these need to be sent? and how do I do that if filling online?)

He is a security guard and had to buy some bits and pieces (security boots, torch, covert camera) to be able to do the job. He also had to travel to various places so have the mileage ligs for that too. I just don't know where I put these figures - we have reciepts for everything.

It is just so confusing! and I don't want to make any mistakes. We just can't afford to pay an accountant to do this so it's down to me!

Please can anyone help or point me in the right direction of PLAIN TALKING, SIMPLE web sites.

Many Thanks

downshifter

Have you had a look at the online self assessment form yet? I think it's quite good, it holds your hand as you go through though I agree the allowances bit is quite hard as it leaves so much up to you. I tend to underclaim I know, because I'm so scared of overclaiming.

If you work through the form, don't worry about making mistakes. Until the final bit when you submit it, you can go back over each bit and change it. I found knowing that was helpful as I thought that each page I did would be my 'final answer'! The other thing is that you get to find out how much you owe or vice versa before submitting it, so that gives you a chance to go back and change stuff if it doesn't seem right.

The first bits on the form are about tailoring it to your needs, so in my case that leaves out any bits about stocks and shares and overseas holdings and so on, - it's different for each person. But if you answer the initial questions then you'll find the final pages you're left with to complete aren't nearly as daunting. You don't have to send in bank statements etc anywhere, just use them as information to complete the forms. In my case the bank statements were used to help me remember who paid me what, and also what interest I receive from accounts. Use the information from the invoices to fill in the various bits as required on the form, you don't need to send the actual invoices in. There are places on the form to fill in for work-related expenses though the language and terminology they use is a bit confusing and jargonistic. Use all the help sheets that pop up if you click on them, they will help too.

Do what you can, bit by bit, remember you don't have to submit it yet so have time to go back over it and change it as much as you like, and if you're still concerned give the tax office a ring. They'll be busy but they're really helpful. Sometimes I do a bit then leave it and go on to the next bit if I get stuck, then the penny drops and I realise I should've put something in a different category, so go back to it.

Don't leave submitting it until last thing on Sunday night though, as that's what everyone else does and the site can crash.

Every time I do one I'm sure someone will be banging on my door at midnight telling me I've done it wrong, but so far not!!! It's a shame it causes so much worry.


HTH

DS

PlutoinCapricorn

Take your time and do it in small steps. There is no one right way of completing the form, as everyone's circumstances are different.

1) I can confirm that you don't need to send any bank statements or receipts. You do need to keep them for around 6 years just in case you are asked for more information or HMRC want to do an investigation.

2) As this is the first self assessment, the online system wants to get a picture of the total income position, which includes ALL income and tax already paid.

You will be asked if there was any income from paid employment: if you say NO it will move onto the next possible taxable income source. This includes benefits, bank interest, pensions,dividends, selling property, renting so if your husband did not get any money from these sources just say NO. Obviously you will put YES for self employment.

3) You are lucky in that the turnover is less than £30,000 so all you need to do is calculate the total income, which goes into one box; total expenses, which goes into another box; and total profit which is income minus expenses.

- income from Self employment includes work done in the tax year even if the money was not paid until after APril 5th 2009. There really should be an invoice for each payment, and a corresponding entry on his bank statement: all money earned from SE counts as the turnover.

- there is a difference between expenses and capital expenditure: thousands spent on equipment needs to be depreciated, but small things can go in the expense total. You need to add up all the receipts, and perhaps calculate a percentage of running costs such as electricity. Expenses bring the profit down, and tax is payable on the profit.

4) there are two boxes on the form where you can put explanations. This might help to avoid having HMRC coming back asking for more information. One is for the total picture, one is for self employment. You could outline the unemployment with no JSA and starting SE for example in the total picture box. The SE box is often used to expain huge drops/rises in SE income and expenses compared to previous years.

BooWhitey

Thank you both very much. This has been a huge help to me. I have taken your advice and have started in little chunks of info. I will be completing it over the next couple of evenings and aim to submit it Friday morning (that gives me a couple of days to play with if the system crashes as you mentioned). Thanks again.