Do I owe the grand sum of 20 pence...?

okokok

Hello Moneysavers,

I've just completed my tax return but not submitted it just yet.

I have a 'proper' job, employed by a business and according to my payslip earned £9906 in the tax year

I paid £360 tax

The reason I do a tax return is I am also registered self employed. However this year I did NO paid work in my own business and had £180 outgoings (phone)

I have been self employed 3 years. Each year I find the process of tax return puzzling but have completed them as best I can.

I completed this year with above details and apparently I owe them 20 pence! I was really hoping to get something back as I am so broke. I just wondered, before I 'submit' it does anyone think this seems correct?

I am waiting to get a copy of my P60 to double check the figures I have taken from my payslip.

Many thanks for taking a look at what is most likely a ridiculous question. Now where is my piggy bank?

(oh, I just thought of something else... does the tax return take into consideration NI contributions? It doesn't ask on the return. This is just an afterthought.

I also wonder why the tax they take seems to vary when I earn about the same in a month... about £800 or a bit more).

okokok

I have done further research. There is a quick tax calculator on the HMRC website. Google quick tax checker if you need to check something for yourself.

nomunnofun

okokok wrote: »

Hello Moneysavers,

I've just completed my tax return but not submitted it just yet.

I have a 'proper' job, employed by a business and according to my payslip earned £9906 in the tax year

I paid £360 tax

The reason I do a tax return is I am also registered self employed. However this year I did NO paid work in my own business and had £180 outgoings (phone)

I have been self employed 3 years. Each year I find the process of tax return puzzling but have completed them as best I can.

I completed this year with above details and apparently I owe them 20 pence! I was really hoping to get something back as I am so broke. I just wondered, before I 'submit' it does anyone think this seems correct?

I am waiting to get a copy of my P60 to double check the figures I have taken from my payslip.

Many thanks for taking a look at what is most likely a ridiculous question. Now where is my piggy bank?

(oh, I just thought of something else... does the tax return take into consideration NI contributions? It doesn't ask on the return. This is just an afterthought.

I also wonder why the tax they take seems to vary when I earn about the same in a month... about £800 or a bit more).

That tax would be correct on your PAYE alone - the 20p is due to rounding i.e. 20% rate on £1.

It appears that you have made a loss of £180 on your self employment but you have to do something with it to claim the relief of £36 (20% of £180). By doing 'nothing' the defailt option is to carry this loss forward to your future TRADING profits.

If you wish to claim the £36 you must choose the 'set loss (£180) against other income of 2012/13 tax year' or words to that effect. Your calculation should now show £35.80 overpaid.

NIC on PAYE income does not form part of self assessment. With a loss of £180, you do not need to worry about self-employed NIC either.

gemstars

Hi nomunnofun,

I've found this thread through googling as I also apparently owe 20p.

My situation is that I also have a 'proper' job where I earn my wages, but I'm registered as self employed as I also make handmade jewellery etc which I sell at craft fairs etc - a hobby really but I have to be registered to keep the tax man happy!!

This is my first year trading and first time completing my accounts (argh!! :eek: ). I made a net loss but don't have any previous income from this business to set it against.

So do I just leave it at that? Or should I be setting it against my earnings from my 'proper' job?

Any advice gratefully received!!

Laurajo_2

Yep, you can set it against earnings from your 'proper' job....Google trading loss relief.

pjread

Laurajo wrote: »

Yep, you can set it against earnings from your 'proper' job....Google trading loss relief.

This is interesting, if only because I researched it a *long* time ago (about 10 years I think) and was pretty certain I couldn't...? (granted, I was thinking of netting greater startup costs against PAYE before dropping the PAYE job if it all went to plan, but same thing right?)

I'll have another look myself, but if someone finds a great link or two I'd appreciate a link.

Laurajo_2

Yep, in the year it's incurred you can offset it against your total income

https://www.hmrc.gov.uk/manuals/bimmanual/bim75410.htm

Re start up costs, these are treated as being incurred on the day you started trading, so if you never started trading, you couldn't claim them.