Help in filling tax return!

jezabel

Hello...I am self employed and trying to fill in the tax return...I am wondering where I have to put the actual cost of stock carried forward in the tax return form? Is a special box in the tax return where I should put the old stock not sold?

Is the stock carried forward considered a profit or just remaining cost?

thank you liz

fengirl_2

The stock on hand at the end of the year appears in the balance sheet. If you havn't produced a balance sheet, then you dont fill in that section of the form.

jezabel

Hello I am quite confused...the balance sheet is in the tax return form....

Sorry but I am new and I am very confused about this....thank you for your help...I really appreciate if you can explain more...regards liz

Savvy_Sue

I believe you should be doing a balance sheet entirely separate from your tax return. The numbers from it go onto your tax return.

But I can't help wondering if you don't need an accountant's help: you have posted several questions and you sometimes seem to be struggling with the answers. An accountant need not cost a lot if your business is small and you keep good records, and they could save you money!

fengirl_2

You should be producing a set of accounts and a balance sheet. However, it looks from your posts that you are struggling and seem to be trying to enter your accounts figures straight from your book keeping onto your return. If this is what you have done, try and do it correctly next year, but you dont have to enter balance sheet details if you havn't done one.

Private_and_Confidential

Savvy_Sue wrote: »

.....But I can't help wondering if you don't need an accountant's help: you have posted several questions and you sometimes seem to be struggling with the answers. An accountant need not cost a lot if your business is small and you keep good records, and they could save you money!

I'm in my 3rd year of trading and about to pay my 2nd years worth of Tax. In Year 1 (2007/2008) I saw a refund in tax of £180 and the accountant costs were £280. In year 2 (2008/2009) I have a tax liability fo £3500 and my accountants costs are £450.

£450 to me seems a lot so I've spoken to him today and he's outlined his charged at £105/hr. So the 15 minute call I just had with him cost me £26.

For my 2009/2010 accounts I'm going to so my Self Assessment myself and ditch my accountant. Apparantly HMRC do free courses and offer free face to face assistance so this should negate any complications with next years submission and will save me a large chunk of money in accountancy fees.

So my advice would be to ensure you have all fees outlined and understandable from the outset. I consider my bill of £450 to be way too high, especially since my books are very well maintained and clearly illustrates the In's and Out's. I'm also dubious as to whether the fee of £450 has saved me any tax through more accurate reporting.

barriejohn69

jezabel wrote: »

Hello...I am self employed and trying to fill in the tax return...I am wondering where I have to put the actual cost of stock carried forward in the tax return form? Is a special box in the tax return where I should put the old stock not sold?

Is the stock carried forward considered a profit or just remaining cost?

thank you liz

The stock will come off your cost of sales figure. ie opening stock + purchases - closing stock = costof goods sold.

Ignore what people are saying about balance sheets etc they are confusing the issue. There is a section on the tax return for a balance sheet if you have one. It is not a legal requirement for a non incorporated (ltd co) business to produce one. Best bet is to ask someone in the know local to you and not get half truths from people with a little bit of knowledge that can turn out very dangerous.

TM1976

Private_and_Confidential wrote: »

For my 2009/2010 accounts I'm going to so my Self Assessment myself and ditch my accountant. Apparantly HMRC do free courses and offer free face to face assistance so this should negate any complications with next years submission and will save me a large chunk of money in accountancy fees.

So my advice would be to ensure you have all fees outlined and understandable from the outset. I consider my bill of £450 to be way too high, especially since my books are very well maintained and clearly illustrates the In's and Out's. I'm also dubious as to whether the fee of £450 has saved me any tax through more accurate reporting.

The reason your accountant can charge £105 an hour is because he knows both the rules and has the knowledge to do this very quickly. Based on his rate he has charged you for less than 4.5 hours of work. There is no way you could do all HMR&Cs courses and do this yourself in anyway near this time, in addition you will have to go to the courses each year to ensure you are still up to date.

Even if you do this you still won't have the knowledge and experience to get this done correctly.

£450 is well spent for this work and competitive.

fengirl_2

And HMRC courses will only teach you about tax, not about accountancy which involves many years' training. £405 is very good value.

barriejohn69

I wish I could have got my training for £405. HMRC courses are for people who are starting a business not who people are in one. HMRC courses are pretty crap to be honest. If you value your time spent on a series of crap courses more than paying someone then carry on

moneypooh

We are charged £400 for 3 tax returns and a set of accounts. Besides the accounting side, a full set of accounts done by an accountant goes a long way when trying to raise future finance for the business. Also if you decide to sell your business.