Tax returns

LesleyJ62

My husband has had a letter from HMRC asking him to file his first tax return. Hubby started his business (Lawn Treatments & Garden Maint) on 31st March 2011, the letter asks for his return for year ended 5th April 2011. Obviously this is only a few days. The business will not be making anywhere near the £70.000 so having looked on HMRC website it seems we only need to fill in the short tax return.
The business had no income in the couple of days from start to 5th April, so, easy to answer that question.
I am slightly confused about the allowable expenses question, am I right in thinking that I can put in reciepts for things like, fertiliser, weedkiller, seed etc that were purchased before the business actually went live, because although the business was registered with HMRC on the day we went live, we had been buying equipment and stock well before that date.
Sorry for a long post, hope I have been clear. appreciate any help
Lesley x

Savvy_Sue

I could be wrong here, but is the request for a tax return not for your husband's personal tax affairs, rather than his business tax affairs?

So leaving aside the business, what taxable income has your husband had from 6 April 2010 to 5 April 2011? Was he working for an employer? you'll need his P60. Was he on benefits at any point? You'll need details of that. Did he get any interest from bank accounts? Statements needed.

And so on, and so on, and so on.

Of course he doesn't have to file his tax return until 31st October if he wants HMRC to calculate the tax he owes, or (I think) 31st January if he does the sums himself. However the date by which tax is due doesn't go down if you file at the last minute, so no point putting it off IMO!

What status does the business have, partnership, ltd co or sole trader?

soolin

It might also be worth spending some money on an accountant for the first year of self employment if you are not sure how to prepare accounts. Get them to talk you through how the accounts are prepared and then do them yourselves in future.

The £70,000 I believe is a VAT threshold only, 'short' accounts can be used up to a turnover of£15,000 (please check the figures I have quoted as I may well be out of date) however even for short accounts you need the basics of gross income less all alowable expenses to give net taxable income.

You will also need to consider whether OH needs to be paying any NI

For the tax year ended 5 April 2011 paper areturns need to be submitted by 31st October 2011 if you want HMRC to calculate the tax. If you are submitting online then you have until the 31st January, but please don't leave it until the last minute as you need to get registered and have all your access codes to submit online.

NiceGuyEddie_2

soolin wrote: »

The £70,000 I believe is a VAT threshold only, 'short' accounts can be used up to a turnover of£15,000 (please check the figures I have quoted as I may well be out of date) however even for short accounts you need the basics of gross income less all alowable expenses to give net taxable income.

£70,000 is the turnover limit for completing the short Self Employment pages.

The VAT threshold is currently £73,000.

steve1980

I started my business on the 19th February and had the same. Took me about 20 minutes to fill the online form in and sent over electronically.