Tax Return Error & Working Tax Query

MagicMoo

Hi

I am new to being Self Employed. Currently i have only submitted 1 return for 2015 - 2016. I think i have got myself in a bit of a mess, not sure why, health has been very bad. So maybe my mind hasn't been working correctly. Anyway ....

On the Tax return submission it says " Your Turnover " ? Is that profit ? Or every single £ that came into my business? Before any deductions?
After talking to other fellow business owners, i have wondered if i have keyed in the wrong information... I have just gone over my figures, and i think i may be a couple of thousand out. I earned very little regardless, not enough to pay any tax on either amount higher or lower. The sum i think i should have submitted is lower than the one i gave.

I also claim Working Tax Credit. I know they use the figure from the Tax return to work out your Tax credit sum, i have done a online calculator and the difference is minor, they would infact owe me a small amount every week of 2015 - 2016. I have also realised i have given Working Tax the wrong estimation for the current tax year , only an estimate as not yet submitted my next tax return. I have over estimated, again, this isn't as bad as under estimating i guess...

So to summarise...

1 - What do i do about the possible incorrect tax return submission of 2015-2016 i think i am out of the 12 month window to amend online? How do you amend after that period?

2 - Should i tell tax credits the amended sum from 2015 - 2016 once i have updated HMRC and my tax record? And do working tax base your entitlement on profit or total business income (as in every ££ that went into the business , before any deductions?)
Or should i tell them now the different estimate for the current tax period, which is a lot less as i have had very little "profit" ? I know they will question what i am doing during my hours of work to be earning such a minor sum. But having spoken to others, they said their profits are zero and working tax is still currently paid.

I hope this makes sense to someone? As i am trying to read online and getting myself more confused. I am debating using an accountant in the future but at the moment i cannot afford the charges they ask.

[Deleted User]

You have until 31st January 2018 to amend this return - the option appears when you select that year's return.

However (and my only purpose is to help you) when you ask

'On the Tax return submission it says " Your Turnover " ? Is that profit ? Or every single £ that came into my business? Before any deductions? '

you really should not be completing the return unassisted. I do not know what you have been quoted for an accountant to take charge but it could be worth it. Are you absolutely certain that your amendments will be correct? If not, another amendment would significantly increase the possibility of a HMRC enquiry in my opinion.

polymaff

MagicMoo wrote: »

...On the Tax return submission it says " Your Turnover " ? Is that profit ? Or every single £ that came into my business? Before any deductions?

This, and other questions you may have are addressed by "SA103S Notes 2017" If you understand the content of SA103S then you should be up to reporting self-employment affairs by yourself.

If not, get an accountant.

MagicMoo

Thank you for the responses. Purdy I am aware of what i am doing to a degree as i said that was my very first Tax return. And it was only from talking to some others recently that i have queried my judgement. However i have since spoken to HMRC and my sum i included for Turnover is 100% correct.

I have been quoted a ridiculous amount from an accountant . £400 - £600 !!!! No thank you, i will continue to learn myself, how on earth when a business is in a early stage do accountants expect such a fee. When most of it we can learn ourselves.

Working Tax credits is what has a confused things as they told me they wanted the total income into the business, regardless of profit! But again when talking to others, this has confused me as they said no they have the profit figure from the Tax return. Again i will repeat this was my first return and i am still learning.

Thank you Polymaff , yes i am aware

Can anyone shed any light on the self employed and working tax credit element ? Do they want profit or actual income that goes into my business daily ?

Thank you

polymaff

MagicMoo wrote: »

When most of it we can learn ourselves.

Working Tax credits is what has a confused things as they told me they wanted the total income into the business, regardless of profit! But again when talking to others, this has confused me as they said no they have the profit figure from the Tax return. Again i will repeat this was my first return and i am still learning.

Thank you Polymaff , yes i am aware

Can anyone shed any light on the self employed and working tax credit element ? Do they want profit or actual income that goes into my business daily ?

Thank you

The fact that you continue to ask a question that is answered VERY clearly in the document you are "aware" of answers your question re: accountants fees.

Most of us in self-employment say a prayer each day - that there are folk like yourself.

For the wider issue, see:

http://revenuebenefits.org.uk/tax-credits/guidance/how-do-tax-credits-work/self-employed/

uknick

I can't comment on other accountants, but I've found I've been able to save my clients most of our annual fee during the first few years in increased profits or reduced VAT bills.