Freelancer Tax question -Enterprise scheme/work credits/Unemployment-end of tax year

furrybertie

Hi everyone

I was studying a degree (mature student - completed in 2011) and I worked freelance part time during my studies - the company is very small and struggling so could only do odd hours here and there so my earnings were under the threshold for paying tax etc so my yearly tax questionnaire was relatively simple

As the company was struggling and couldn't pay me to work anymore after graduating I was unemployed for nearly a year (nightmare!!!) - last year I decided to try the New Enterprise Scheme to help start freelance again and within a month I found out that the company I'd worked for got a new contract so I started working with them again freelancing, and I now work from home meaning I can do more hours (yay).

I've only had the odd small freelance work elsewhere so most of my income is from this one company (keeps the records easy for me though!)

I've kept all finance details obviously but the fact that the start of the tax year involved benefits and then starting on the New Enterprise means I'm slightly confused as to what counts as taxable income and what isn't!

I'm also switching methods of keeping my finance records to an online company (Zoho books) so knowing what benefits/tax credits etc come under is proving difficult to find out!

From April 2012 to 2nd August 2012 I was on unemployment benefits - housing benefit/jobseekers then I went onto the
New Enterprise Scheme which the benefits stopped and I was paid £65 a week for 3 months then £33 for another 3 months (ended in January 2013) and I also got working tax credits £47 per week (which will end at the end of the tax year).

any help in clarification or where to look - the HMRC website searches just brings up how to claim tax credits etc and not how to add to your tax form!

Thank you for any pointers :-)

WHA

What is and isnt taxable is explained on hmrc webpage:-

http://www.hmrc.gov.uk/incometax/taxable-income.htm

furrybertie

cool thank!

I have no idea why I couldn't find that page before - now bookmarked and printed off just in case

now to figure out Zoho Books - what fun for a bank holiday :-)

zygurat789

It sounds as if you are just starting to learn about taxability and record keeping in your spare time, welcome to the ranks of the self employed. It also sounds as if ZOHO may a fee paying service.
One of the first things I learned about computers was GIGO so, free advice, learn about record keeping and how to do it manually, yourself, and for free using just a spreadsheet, most people who start find this very easy. When you really understand then you can, if you still feel the need, use ZOHO.

WHA

Isn't Zoho an American firm - are you sure that their accounts system will cope with UK tax, such as VAT etc. There're a couple of other US systems that can't cope with UK cash accounting for VAT nor the flat rate scheme. I'd suggest you look at UK systems first. You may not need VAT yet, but if you grow, the last think you want is having to change systems at a time when you're busy growing the business.

furrybertie

I've come to my senses - I do this every year... I try out lots of options and then go back to the basics... I can't help it lol.
I do this with productivity apps/software etc too - sign up/download and try them all out and I then realise it's just a way to procrastinate and not actually get on with the project in hand!

I hate excel/spreadsheets as I did admin work many years ago and I try to avoid it.. plus I don't trust my maths despite being generally correct so I was trying to see if there was an easier solution even if I pay a small amount to try it out.

I used Zoho for the invoicing for the last year (for just the one main company I work for - which is free) and that was useful - they are UK friendly (don't know about the VAT part as I'm not applicable for that) but the bank feeds don't have my business bank listed and for some reason wouldn't import my bank statements - I'm not hand typing last years statements in... time saver NOT!)

new tax year coming up... so I guess I will have to stop faffing (new tax year resolution?!) with software (procrastinating) and just get a proper spreadsheet set up - I'm organised with expenses/invoices/bills etc but just need to get it into one organised spreadsheet so it makes sense to the Tax man/accountant and the end of the year.

thanks for your help and advice - sometimes I need grounding (after a flight response to math type stuff ;-P)