First time self assessment

Marcus_J

Hi there,

I registered as self employed October 2013 after many years on benefits. i needed to remove myself from benefits for personal reasons and was offered some hours at a local independent college teaching English. I am paid cash weekly for the hours i teach, which doesn't amount to much but am far better off both financially and mentally than i was on benefits.

I was sent a letter from HMRC not long after registering as self employed informing me that my tax self assessment was due no later than January 2015. My mistake was not keeping tracks of my earnings and outgoing expenses. The earning i recieve from the college are noted in their files, other than that i'm supplied only with a hand written receipt, some of which i've kept others i've misplaced.

I am now worried about supplying my records, i've also worked bits and pieces doing private teaching, which i've failed to keep detailed records of (other than being aware approximately how much i've earned per week/month). I'm certain that my yearly earnings will be under £10,000 for the calender year, and am hoping that maybe a little leniency may be shown with regards to my record keeping, due to this being my first year of having to supply them. I will certainly not be making the same mistake next time.

Just wondering if anyone can inform me or offer advice how best to proceed? Has anyone been in this position? Would making an appointment at HMRC and levelling with them be the right approach? I've been trying really hard to get my house in order, i've survived my first year as self employed and am working hard to improve my hours/income for next year, this year has been a learning curve.

Thanks in advance.

TheCyclingProgrammer

You won't have to provide any records beyond what goes on your SA unless they are specifically asked for. Barring a random check it's unlikely your return would be flagged for checking at that level of income.

You need to start collating all the records you do have and make a list of all income and expenditure you can and use this to help you fill out your return. I would avoid claiming any expenses unless you have evidence for them.

In future try and issue proper invoices for your work and keep all receipts.

Make sure you are registered online if you aren't already.

Marcus_J

Thank you.

Do i fill in my income from the beginning of self employment (Oct 2013) to October 2014?

purdyoaten

Marcus_J wrote: »

Thank you.

Do i fill in my income from the beginning of self employment (Oct 2013) to October 2014?

First of all - you decide what month you wish to make your accounts up to. The obvious choices are 30th September (first twelve months) or 31st March (end of tax year - 5th April also acceptable)

Your first SA should include either:

6/12 of your accounts to 30th September 2014 or

all of the accounts for the period 1st October to 31st March.

The first option is more complicated to understand but could offer cash flow advantages where your profits are expected to rise in the future. In effect, you are required to declare the whole of the accounts for the complete year 1st October 2013 to 30th September 2014 and adjust. The picture is further complicated by the fact that these SAME ACCOUNTS are also relevant to the second year's return.

This option is not for the beginner.

The second option requires you to declare the accounts corresponding to the tax year i.e. accounts for year ended 5th April 2015 go on 2014/15 return.

I suspect that the second option is preferrable.

Finally as a curmudgeonly old git and, given that you are an English teacher, ‘receive’and ‘calendar’ are incorrectly spelt.

HatAndScarf

Marcus_J wrote: »

Hi there,

I registered as self employed October 2013 after many years on benefits. i needed to remove myself from benefits for personal reasons and was offered some hours at a local independent college teaching English. I am paid cash weekly for the hours i teach, which doesn't amount to much but am far better off both financially and mentally than i was on benefits.

I was sent a letter from HMRC not long after registering as self employed informing me that my tax self assessment was due no later than January 2015. My mistake was not keeping tracks of my earnings and outgoing expenses. The earning i recieve from the college are noted in their files, other than that i'm supplied only with a hand written receipt, some of which i've kept others i've misplaced.

I am now worried about supplying my records, i've also worked bits and pieces doing private teaching, which i've failed to keep detailed records of (other than being aware approximately how much i've earned per week/month). I'm certain that my yearly earnings will be under £10,000 for the calender year, and am hoping that maybe a little leniency may be shown with regards to my record keeping, due to this being my first year of having to supply them. I will certainly not be making the same mistake next time.

Just wondering if anyone can inform me or offer advice how best to proceed? Has anyone been in this position? Would making an appointment at HMRC and levelling with them be the right approach? I've been trying really hard to get my house in order, i've survived my first year as self employed and am working hard to improve my hours/income for next year, this year has been a learning curve.

Thanks in advance.

I'm not sure about your position, but I think the "independent college" may soon be having a visit from HMRC if they are handing out cash payments every week for your services, without even an invoice from you.

HMRC may even decide you are not self employed, but employed, so the "independent college" will then be paying your tax & stamp too

HatAndScarf

purdyoaten wrote: »

...
Finally as a curmudgeonly old git and, given that you are an English teacher, ‘receive’and ‘calendar’ are incorrectly spelt.

Classic!

:rotfl: