Tax Return and Calculations

dcooper_3

Hello

Can someone please tell me EXACTLY what headings and calculations I would need as a self-employed person doing their day-to-day book keeping/finances.

I would like to create an excel template, that I would gladly make available to this forum for free, but need to know exactly what I need to put in that excel sheet.

I hear mention of deduction, capital allowances and so on. Could someone break these down in proper English for me as this techno-accounting jargon is confusing to me.

Alternatively, is there a good jargon busting website out there for newly self-employed and a website with a specific newly-self-employed template on it?

Any help in this area would be appreciated. I'm sure there are many people in my situation who would also appreciate this information.

Thanks in advance

Dave

Gertie_Walker

The headings you need really depend on your business, what you do, whether its all cash or you offer credit.
You will certainly need a separate sheet for income. Make columns for date (or receipt of money), cash received and cheques received.
On the outgoings sheet, you need columns for purchases, materials, wages paid, travel, postage and staionery - whatever makes sense for what you are doing.
A deduction is just the name for the expense which you include in the accounts against your takings. Capital allowances are to do with tax and dont get shown in the book keeping, although the actual cost of the item should be shown in a column headed 'equipment' or 'vehicle'. A course with Business link may help you as all business are different and one size does not fit all.
Separate out in your head the accounts side which is where your book keeping comes in and the tax side which does not come until the end of the year when the accounts are done.

PlutoinCapricorn

It really does depend on the type, size and volume of business. There is no one size fits all system around.

As a consultant, I have a 3-page spreadsheet: one page for income, one for expenses and one for totals figures to transfer to fields on my tax return. The income is listed on a month by month basis, and is split into the various sources, of which self employment is one. Bank interest is another - anything that is taxable.

The expenses are similar, and as I am home based I have columns for electriciy, council tax etc. I have another column for general expenses such as printer ink, tiny netbook: nothing is big enough to be classed as capital even is it is durable. I have totals, and then calculate the claimable proportion.

I have a separate spreadsheet listing each invoice issued by me, with client name, reference number, amount, date paid, pay method. This is broken down into financial years.

My system would not be suitable for someone who is buying and selling on a large scale.

I would rather use my own design than some accounting package full of irrelevant fields and items.

lauzt1987

I really would make an appointment with an accountant/tax adviser. Even if it's a one off appointment, they will give you a lot of useful advice, for example what expenses are allowable etc.

dcooper_3

WOW! What an insight! What a mind field!

Thanks everyone. As always, the people on this forum are great and give out sound advice. I will visit a few accountants over the next few days and see what they individually advise in relation to my particular business, even though the help above has been fab.

Dave

clio2008

PlutoinCapricorn wrote: »

It really does depend on the type, size and volume of business. There is no one size fits all system around.

The expenses are similar, and as I am home based I have columns for electriciy, council tax etc. I have another column for general expenses such as printer ink, tiny netbook: nothing is big enough to be classed as capital even is it is durable. I have totals, and then calculate the claimable proportion.

Hi and thanks for the detailed info above

I just have 2 questions still.

1. I am self employed and live with my OH who is working full time.
We pay CT for both of us, but as Ive registered as self employed
am I eligible to claim back on my side of the CT? *if its a silly
question pls bare with me, am new to this whole self employed
stuff*

2. Can I claim back on sustenance? And if so how do I go about
calculating it? I was able to claim back on petrol and sustenance
whilst working under a Limited Company, but their accountant did
the sums and I paid a monthly fee for that service. But being self
employed is another kettle of fish lol

Any help would be appreciated.


Thanks.

PlutoinCapricorn

I am not sure about claiming for the council tax when shared, but it seems reasonable if you are spending your own money.

As for 'sustenance', I believe that only deviations from normal patterns can be claimed for. As usual, it depends on what you are doing. As I do a lot at home, I can't claim for food and drink consumed there. I usually take my own food when visiting a client, but occasionally I buy something which I do claim for as this is outside my normal way of working.