Self-Assessment

Zebra

I did some home-working last year after seeing it discussed on the Up Your Income board.

Generally the work done in one month would be paid up to two months later. For instance the hours worked throughout January would be claimed at the beginning of February and paid in the middle of March.

First question is whereabouts on my SA tax return do I include these payments - boxes 15 & 16 for 'Other taxable income' and 'Allowable expenses'?

Secondly, given that there are allowable expenses, do I apportion the expenses in the month they occurred even though payment wasn't made until later. So I should include on my return for 2011-12 my expenses in February and March, yet the payments for that work received in April and May on my 2012-13 return?

Xutl

Zebra wrote: »

I did some home-working last year after seeing it discussed on the Up Your Income board.

Generally the work done in one month would be paid up to two months later. For instance the hours worked throughout January would be claimed at the beginning of February and paid in the middle of March.

First question is whereabouts on my SA tax return do I include these payments - boxes 15 & 16 for 'Other taxable income' and 'Allowable expenses'?

Secondly, given that there are allowable expenses, do I apportion the expenses in the month they occurred even though payment wasn't made until later. So I should include on my return for 2011-12 my expenses in February and March, yet the payments for that work received in April and May on my 2012-13 return?

Boxes 16 and 17 of page TR3 would be fine, depending on the amounts. Alternatively you could enter the details on a self-employment page http://www.hmrc.gov.uk/forms/sa103s.pdf

As for the second part of your question - yes you're spot on. Declare the expenses in the year in which they occurred and the payments in the year in which they were received. :cool:

Zebra

Thanks Xutl. I thought so, but just wanted to check.

Obviously it would all balance out in the end but does mean that someone could be claiming expenses in a year in which they received no income.

The amounts are about £8,000 for gross income and about £400 expenses.
It wasn't really self-employed, tasks were allocated and paid at a fixed hourly rate and the contract was for a fixed 11 month term - I presume this was for some tax reason?

jimmo

There are different rules for employment income and income from self-employment.

Employment income is chargeable when it is received, regardless of when it was earned.

http://www.hmrc.gov.uk/manuals/eimanual/EIM42210.htm

Income from self-employment is chargeable when it is earned, regardless of when it is received. Similarly, expenses are allowable when they are incurred, regardless of when they are paid for.

http://www.hmrc.gov.uk/helpsheets/hs222.pdf