self assesment HELP

harrybo_3

hi hope this is posted in right place

i recently done my 1st tax return being a cis builder

i also moved home and do not have any reciets petrol etc
my income 4 the year was £21000
got a rebate of £3200

from my expensives

i have been received a letter from the tax office to be investigated

what is the likely outcome of this scenario

any help or advise would be a great help

Petmidget

This ignores any other income you may have that you havent posted about.

Ok by my workings you had deducted IT at source of £3780 (assuming labour only) Giving a tax bill of £580. That calculates back to an income of £7573 giving expenses of £13,426. IMO harldy surprising you are getting an enquiry esp as your first year.

So i would suggest you get justifying them. You dont necessarily need invoices or receipts but you do have to be able to justify them. If you have receipts, find them.

If you made stuff up off the top of your head, I would suggest meeting an accountant who can help you put together what you can legitimately justify.

If this is leaves more taxable income than on the return be prepared to pay the tax, interest and possibly penalties. And be prepared to have an enquiry next year and every couple of years for a while.

DO NOT put your head in the sand or muck them about as they might open a full investigation which will tie you up in paperwork for months.

And get some advice on what you can/cannot claim for future returns, I know its tempting to make it up and everyone takes the mick a bit but in the long run it just isnt worth it.

harrybo_3

thanks

obviously i have worked the whole year is there a miniumum allowance with out receipts for petrol

or is the taxman gonna query the whole amount because of no receipts
does any1 know what would ve been a more acceptable ammount

ctm_2

harrybo wrote:

does any1 know what would ve been a more acceptable ammount

Umm, the actual amount?

You need to make a list of EVERYTHING that you wanted to claim expenses for, and justify the amounts you are claiming for everything. There are no set amounts for anything. It is just wether it is reasonable for you to be claiming that. Obviously what is a reasonable amount for one person is not reasonable for another.

If you had receipts for everything you were claiming, then there would be no problems, as long as you could justify them as wholly and exclusively for your work.

If you are claiming for things that you used for work, and for other things, then you will only be able to claim for the business use part of the expense.

Say you have a van and did 10000 miles in it in the year, but only 5000 on business, then you would only be able to claim for that 5000 business miles.

How did you arrive at your figure for expenses?