Self Assessment help

psyche123

In February 2013 I started doing some self employed work other than my regular employment. I was about to complete my self assessment for February 2013 to the start of April 2013, but my boss has advised me that I can no longer do the private work ashe feels it is a conflict of interest with my main employment. Will I need to do a tax return each year for a couple of months each year. Or is their a way to send my self employment history from February 2013 until June 2013?

I started a self assessment. I earned £425 in February and March until April 5th. I had expenses of £183 making a net profit of £242. On my self assessment it states i have to pay tax of £143.60. My total earnings on my P60 for my main employment is £28991. To me i thought my tax would be about 20% as I am under £34,370.

Am i better to see if i can get in an accountant to help or is there something I am missing?

Any advice would be gratefully recieved
Thanks

Dazed_and_confused

You will have to complete two tax returns. You don't get a bill for your self employment, the self assessment return will establish your total tax bill for the year.

It might be possible to check why the amount due is more than expected if you post up what you have entered on the return, each source of income, expenses, benefits in kind etc. For the amounts involved it is possibly not cost effective to engage an accountant.

Savvy_Sue

I'm wondering if that payment is what's due for 2012-13, plus half of what's anticipated will be due for 2013-14?

nomunnofun

Savvy_Sue wrote: »

I'm wondering if that payment is what's due for 2012-13, plus half of what's anticipated will be due for 2013-14?

Normally POA only due if amount outstanding more than £1000 - odd!

nomunnofun

psyche123 wrote: »

In February 2013 I started doing some self employed work other than my regular employment. I was about to complete my self assessment for February 2013 to the start of April 2013, but my boss has advised me that I can no longer do the private work ashe feels it is a conflict of interest with my main employment. Will I need to do a tax return each year for a couple of months each year. Or is their a way to send my self employment history from February 2013 until June 2013?

I started a self assessment. I earned £425 in February and March until April 5th. I had expenses of £183 making a net profit of £242. On my self assessment it states i have to pay tax of £143.60. My total earnings on my P60 for my main employment is £28991. To me i thought my tax would be about 20% as I am under £34,370.

Am i better to see if i can get in an accountant to help or is there something I am missing?

Any advice would be gratefully recieved
Thanks

Did you enter the correct gross pay figure from your P60 i.e. after pension contributions.

Do you have any allowance for fixed rate employment expenses? (Is your code 810L?)

Additionally 42375 is the amount one can earn before becoming a higher rate taxpayer in 2012/13.

psyche123

I used the figure from my p60 which is highlight and states to use for my tax return as its is my gross pay, less of superannuation and charity contributions

my tax code on my p60 is 0857L?

I have been looking over the online self assessment. think i have filled it in properly. i do not have any other benefits. It is just thi small amount I earned self employed from Feb-April.

psyche123

Savvy_Sue wrote: »

I'm wondering if that payment is what's due for 2012-13, plus half of what's anticipated will be due for 2013-14?

could well be that its anticipated for next year? if it is then that might explain. However, without knowing if that is the case im not sure how to figure that out.

nomunnofun

OK - the normal code is 810L giving 8105 of allowances. You have been granted 8579 which is 474 above the normal amount. The tax due on this would be £94.80 which, when added to your self-employed tax of £48.40 (£242 at 20%) equals £144.20 - close enough.

You need to find out why you were given 474 additional allowances - check your latest P2 coding notice for that year.

Let's say that you pay £474 professional subscriptions - HMRC have included these in your code number. You MUST claim these in the employment section of your tax return in order that everything balances out.

nomunnofun

psyche123 wrote: »

could well be that its anticipated for next year? if it is then that might explain. However, without knowing if that is the case im not sure how to figure that out.

Not the case unless balance owing is more that £1000.

psyche123

nomunnofun wrote: »

Normally POA only due if amount outstanding more than £1000 - odd!

I just looked over my tax return again. Found this category.

Allowance for small balance of unrelieved expenditure
If the balance in your 'main pool' and/or 'special rate pool' after claiming Annual Investment Allowance, together with any balance carried forward from any previous year, less any amount you got from disposing of the equipment you no longer use, is £1,000 or less, you may claim that whole amount, or part of it, as a 'small pools allowance' instead of the 18 per cent or 8 per cent Writing Down Allowance. Enter the amount of this allowance in this field. The balance to carry forward will be nil.

If i put my net profit in this section it decreases my tax to £95. Not sure if its right or not. feel im just playing around with numbers now.

psyche123

nomunnofun wrote: »

OK - the normal code is 810L giving 8105 of allowances. You have been granted 8579 which is 474 above the normal amount. The tax due on this would be £94.80 which, when added to your self-employed tax of £48.40 (£242 at 20%) equals £144.20 - close enough.

You need to find out why you were given 474 additional allowances - check your latest P2 coding notice for that year.

Let's say that you pay £474 professional subscriptions - HMRC have included these in your code number. You MUST claim these in the employment section of your tax return in order that everything balances out.

I have previously contact HMRC regarding laundry costs and professional memberships for my main employment. I never realised I would have to add these to my claim aswell