Self Assessment advice needed

tc1992

i am having to do self assesment for the first time. I am trying to do this online, and am a worried as i have no idea what to expect. and have no experince.i have registered and looked through the first few questions

I am self emplyed sind Feb 27, previous to that i was on JSA for about 2 or 3 weeks, and previous to that i was on Incapacity for the tax year. I have kept records.

Here are some questions i need help with (taken from the online form):

1) Have you made any income tax losses in the year 2011-12?

I don't really understand the question, are they basically asking me if i have paid income tax in the year 2011-2012,. If that is the question then the answer is no, i haven't paid any Income Tax 2011 - 2012


2) Did you receive any interest etc, for example, from UK banks, UK building societies, UK unit trusts?

Would this include any interest made on my business account (which is negligable)?

3) Do you wish to make an adjustment to my profits chargeable to Class 4 NICs

As i'm running at a slight loss, si the answer automatically no for this?

4) My 'basis period' (the self-employed period for which I am taxable) is not the same as my accounting period

can't understand the question. all i know is that is started my self employment on 27th Feb, and have kept records since that date

5) Date your books or accounts are made up to

Is the answer to this 5th Apr, since this is the end of the tax year?

6) How would you like to record your expenses?*

as a single total value
as a detailed breakdown

Not sure which to choose.

princessdon

tc1992 wrote: »

i am having to do self assesment for the first time. I am trying to do this online, and am a worried as i have no idea what to expect. and have no experince.i have registered and looked through the first few questions

I am self emplyed sind Feb 27, previous to that i was on JSA for about 2 or 3 weeks, and previous to that i was on Incapacity for the tax year. I have kept records.

Here are some questions i need help with (taken from the online form):

1) Have you made any income tax losses in the year 2011-12?

I don't really understand the question, are they basically asking me if i have paid income tax in the year 2011-2012,. If that is the question then the answer is no, i haven't paid any Income Tax 2011 - 2012.

They are asking if you have made any income tax losses that can offset against gains.


2) Did you receive any interest etc, for example, from UK banks, UK building societies, UK unit trusts?

Would this include any interest made on my business account (which is negligable)?

Yes

3) Do you wish to make an adjustment to my profits chargeable to Class 4 NICs

As i'm running at a slight loss, si the answer automatically no for this?

Have you paid Class 4?

4) My 'basis period' (the self-employed period for which I am taxable) is not the same as my accounting period

can't understand the question. all i know is that is started my self employment on 27th Feb, and have kept records since that date

Your baisis is 27/5 to 4/4

5) Date your books or accounts are made up to

Is the answer to this 5th Apr, since this is the end of the tax year?

Yes from what you say

6) How would you like to record your expenses?*

as a single total value
as a detailed breakdown

Not sure which to choose.

As you are new I'd personally chose detailed breakdown to force you keep more detailed records. YOu can chose a single total but if in 3 years they then asked how that data was made up you'd need to have records somewhere, so depends on how you are keeping your records.

I take it they are also asking about benefits and that you still receive benefits in your SA?

MoneySavingUser

1) Losses are when you carry forward losses from previous years - doesn't apply to you
2) Yes
3) Probably no adjustment but you will need to pay it - as a self employed person you need to pay both class 2 and class 4 NI contributions - you should get a class 2 bill if you have told HMRC you are self-employed, class 4 you pay with your tax bill
4) Basis period is 27/2 until 5/4 (you really need to read the basis period information on the HMRC website)
5) This is the date that you prepare accounts too - you need to choose an accounting year-end (and this will also affect your basis period in future years)

For simplicity you can choose 31 March or 5 April or you can choose something like 30 April (this pushes the tax date linked to your basis period further into the future so you get a cashflow advantage from paying your tax bill later)

6) If your income is less than £70000 then you can enter a single figure and fill out the self-employment short forms and it it is higher you have no choice and must enter a breakdown and fill out the self employment long form

There are lots of help guides on the website: http://www.hmrc.gov.uk/sa/index.htm

http://www.hmrc.gov.uk/sa/self-emp-part.htm

https://online.businesslink.gov.uk/bdotg/action/detail?itemId=1073789950&type=RESOURCES

https://online.businesslink.gov.uk/bdotg/action/layer?topicId=1081525880

But this isn't something to muddle through without knowing what you are doing - if you can't do it get an accountant

BTW you don't need to pay your tax bill until 31st January (gives a cashflow advantage) but it is best to have the form ready filled beforehand than rushing at the end of the year

tc1992

thankyou both very much for the replies

princessdon - ok, will go for detailed. i have kept records of all my transactions, banks tattements, receipts . . hope they will be sufficeint. i have only looked through the first 10 (online) pages and they have not asked me about benfits so far, but i am sure they will

MSU - thanks for the detailed answers and links. muddling through is exactly how i do feel at the moment. will consider an accountant, would you have a rough idea off the top of your head as to the apprxoimate cost for a small business (i'm selling about £10k's worh of stuff per year at the moment)


EDIT:

Had a look at the next section of the SA form this afternoon, which goes into the money side of the busines, income, expenditures, etc. think this does not look too difficult. i have fairly simple business set up, mostly buy and sell from a couple of sites online, and have just a few occasional other expenses (well, apart from the PO)

MoneySavingUser

If you only have £10k turnover - it shouldn't be too difficult to fill in the form as long as you keep good records - but you must read the accompanying guidance and instructions.

The business link website is also good for information on keeping your business finances in shape.

It shouldn't cost more than a few hundred pounds for just a tax return, a bit more if you want business, tax saving advice etc. but don't just go for the cheapest one - they aren't always the best.

Another place to look is http://www.ukbusinessforums.co.uk/forums/forumdisplay.php?f=55

The people who run https://www.cheapaccounting.co.uk/ , http://myaccountantonline.co.uk/index.html and http://www.farrantfrost.co.uk/ post there and look nice - but I have not used any of these companies.

tc1992

thanks.

even at a few hunderd pounds i think i need to try this for myself. i am only taking a wage of £70 a week at the moment.- which you won't be surprised at as my turnover is only around £10k at the moment. most of the money is going into building my stock

I am good with figures, and have kept good records, it's just a lot of the terminology that is alien to me.

have registered a whie back at the ukbusinessforum so will look them up again in future