Self-Assessment help

Thomask

Hi all

I'm fairly new to the self assessment system and would be thankful for any guidance / tips regarding the following:


1. When completing the self assessment return due 31 Jan 2011 which dates does this cover? Also, does it cover work carried out within those dates regardless if payment has been received?

2. Every few months I receive a NI bill from HMRC. I assume this relates to my self-employment status (as NI would be deducted by my employer automatically in a PAYE situation - correct?). Why does this documentation not list my UTR anywhere?

3. Does anyone have any links to good guides on the internet for helping you file your return and helping you work out what you can claim and what percentage of that expense can be claimed (ie if you work from home I believe a percentage of your rent can be claimed?).

4. When do the receipts I've collected need to be sent to HMRC? Do they all need to be sent or just those above a certain value? What is the process for sending these in?

5. Can food, coffees, alcohol, travel, rent (I worked from home), mobile be claimed if work related?

6. If required, will copies of my bank statement showing outgoing rent and mobile bills being paid be sufficient?

7. I hear if you can't file your return by midnight on 31 Jan 2011 you can make a payment and if it's large enough this will avoid any penalty fees (providing the payment you make is greater than any tax owing). How can one make a payment? Bank transfer?


Thanks in advance.

chrismac1

1. This is for the 2009-10 tax year from 6 April 09 to 5 April 10. If your accounting year end is 31 March or 5 April, it covers the year to 31 March 10 or 5 April 10. However, if your year-end is not one of these dates it covers the year ending during the 09-10 tax year. The most extreme case is if your year-end is 30 April - then the accounts for the year ended 30 April 09 - yes 09 - count. If this is your first year of self-assessment, regardless of your year-end choice your tax BASIS period is from the day you started until 5 April 10.

2. Please do not EVER expect joined-up thinking from HMRC or you will be eternally disappointed.

3. I do and have sent you some links separately.

4. You don't send them in. You keep them for 6 years, well filed and where you can put your hands on them. If you are one of the 3% of self-assessment taxpayers each year selected for an enquiry by HMRC, you will need them. If not you keep them for 6 years and then shred / bin them.

5. Coffee and alcohol and food generally you can't claim, they are personal. There are exceptions such as when you are on overnight stay away from home on business. You can claim for use of own home for business, and the business element of all expenses such as mobile phone.

6. HMRC have it both ways when it comes to the internet age. If you had registered your business for VAT, or formed a limited company, you'd find you MUST submit VAT returns and corp tax returns electonically. Indeed they specifiy iXBRL for company returns which has caused many a sleepless night. Yet when the boot is on the other foot and they come for an enquiry, it can become a paper chase and they are often very pedantic in NOT accepting electonic records as evidence of business spend. It all depends whether you get a reasonable HMRC inspector or not.

7. Luckily there are lots of ways of paying HMRC.

http://www.hmrc.gov.uk/payinghmrc/selfassessment.htm

Thomask

Hi

Many thanks for your helpful answers.

Just to clarify, I started working as self-employed for this company in May 2010 with my first wage payment coming from them in May 2010 also.

I assume this means I don't need to file a return this year? If so, will HMRC be aware of this or do I need to somehow notify them?

ncthomas1

Did you tell HMRC you are self employed? Have they issued you with a UTR (ten digit number)
May 2010 falls into the tax year April 10 - April 11, latest filing date for that is Jan 2012. However, if you want you can make your accounts run like this: May 2010- 30th April 2011. From that one whole year set of accounts, you can do the 2012 SA return, AND the 2013 tax return, as you have a brill year end (30/04 really good date) so then you just claim the overlap relief for the period that covers both. So, one year set of accounts, will then always provide you with the information for TWO years tax returns, as your specific year, (1st may one year, to 30th April another year, will always span two tax years.

Thomask

Yes - told them I am self employed (and gave start date of job) and they issued me a UTR.

A little confused on whether filling this 31 Jan is necessary

runninglea

Have you been sent a reminder telling you deadline is approaching?

Otherwise starting in May 2010 you shoudnt need to file one.

Were you employed up to May 2010

no-oneknowsme

Thomask wrote: »

Yes - told them I am self employed (and gave start date of job) and they issued me a UTR.

A little confused on whether filling this 31 Jan is necessary

You startedself employement in May so filing a return by 31st Jan is not necessary. Your first return will be due by 31st Jan next year , 2012.

Possetjohn

Thomask wrote: »

Hi

Many thanks for your helpful answers.

Just to clarify, I started working as self-employed for this company in May 2010 with my first wage payment coming from them in May 2010 also.

I assume this means I don't need to file a return this year? If so, will HMRC be aware of this or do I need to somehow notify them?

Hi Thomask,

I think you have your questions answered.

I was a bit alarmed by the phrases "working as self-employed for this company" and "first wage payment"!

Do you invoice the company and do you work for anyone else?

HMRC don't like employers who make staff work as self employed to release them from their employer liabilities.

You can check HMRC guidance at the web address below

http://www.hmrc.gov.uk/working/intro/empstatus.htm