Turnover....What is it??

Gary_Moore_2

I apologize that this has been written elsewhere, But I am DESPERATE as I am in financial ruin (almost) and need to see if I can get a tax return (Fingers Crossed eh?!). But what do I put in the 'TURNOVER' box within my Self-Assessment Tax Return?.

For example, between April 5th 2010 and April 5th 2011, I have earned £12,372. But £2,474 was already taken out (CIS?) and paid as tax. So I actually received £9,898 in actual cash (Paid into my bank account).

I apologise for my inability to understand the matter lol. But is my turnover £9,898 because that is what I received?. Or is it £12,372 because this is what was 'paid' by my boss for my services??

Thanks

Hammyman

Your turnover is the amount of money you received in payment for goods and services before expenses so your turnover is £12,372.
You would then have expenses which can be deducted. That would give you your "profit". I can't remember OTTOMH but there should be somewhere where you can fill in any tax paid. What you owe from the "profit" would be worked out, the amount you've paid to that applied and a bill sent for any owed or a refund for any overpaid.

John_Pierpoint

Hi Gary,

I have just gone to the top of the two green bands for the forum at the top of this page.

I clicked "Forum Search" and then "Advanced" and put in CIS (Construction Industry Scheme) as the search word. And chose "Saving Tax" as the part of the forum to search.

I got 300 hits.

Not all of those are actually about the Construction Industry, but you should find plenty of advice amongst those threads for situations very similar to your own.

AIFOP

Gary,

From the figures you have provided it is clear that you are paid under the CIS scheme and have a net payment status with 'tax' being with held at 20% (£12,372x20%=£2,474.40).

Think of this as an on-account amount of tax taken off and will be subject to adjustment when you sort out your accounts as a self employed person. Without knowing your personal circumstances it would not be a suprise if you are due a rebate.

For future payments, when you send in your bill, list out the value of any items of plant you have hired, fuel provided for the plant and any materials you have purchased. These costs should not be taxed for the CIS calculation, this does not alter your overall tax position, but helps cashflow.

If you have 5 minutes browse the CIS section of HMRC's website and make sure you read HMRC CIS340.