Doing my first self assessment tax return.

sprucegs

Hello
I'm about to do my first tax return for self employed. I have all my invoices together along with a print off spreadsheet showing all invoices added up together. I also have all my receipts I used in the year to purchase items. They are all together and again a spreadsheet printed off giving the total amount. My first year has been slow so I'm not going to be laying taxing but understand I still have to do it. I have heard people talk about OPEX and CAPEX? Please can someone explain what these are? I have bought things like a laptop, gloves, workwear, a few other bits and pieces I'm trying to figure out which goes where.
Many thanks.

Dazed_and_confused

Did you have other taxable income, for example a previous employment, in the same tax year that you are doing your self assessment return for?

This may make the importance of expenses more crucial.

sprucegs

Hi no. I got made redundant in the January 2016 and started my business in May 2016. Thanks

Sncjw

If you go on gov website starting a business they list what items you can use as expenses

Wake_up_call

Be wary of payments on account as in your first year it means paying 50% extra on your tax bill in advance.

Dazed_and_confused

Be wary of payments on account as in your first year it means paying 50% extra on your tax bill in advance

That is just plain wrong

Even if the op needs to make POA the first year they could apply for, assuming this is their first return, is 2017:18.

And the first POA for 2017:18 isn't ever payable before 31:01:2018, three quarters of the way through that tax year. Hardly in advance.

Dazed_and_confused

I got made redundant in the January 2016 and started my business in May 2016. Thanks

The importance of your expenses then primarily depends on whether your business turnover was more than the personal allowance, which was £11,000 for 2016:17. If not, and you aren't married then the expenses won't make any difference to the tax payable for 2016:17 which will be £0

jobbingmusician

AFAIK you can choose your own tax year. But it does make sense in every way except one to choose a tax year of 1 April to 30th March. The only way in which this is a bad idea is that the whole world are trying to submit their tax returns in January, so it is difficult to get help from HMRC then!

I have been doing my own self-assessment for at least the last 10 years and had never heard the terms OPEX and CAPEX before but the form explains many of the allowances as you go along, in any case!

You should have registered as self-employed within 3 months of starting, but my experience is that HMRC are reasonably kind about this as long as you tell them before they discover you. Once you register they will send you emails at regular intervals about online training which will help you with your returns

sprucegs

I'm registered self employed and have received a form telling me I must do a tax return for the April 2016 to April 2017 tax year. It says I have until January 2018 to do this, but I don't want to leave it last minute. My income for that year was way below the personal allowance so I won't be paying tax anyway. I have invoices for the work I did in that year and have receipts all be it not many for things in purchased to help me. Things like a laptop, which I needed to buy to do my invoices etc, and other equipment such as workwear etc. I was just curious as to what this opex and capex actually means. All I need to do really I'm guessing is fill in my total income, my 'expenses' or things I bought to help me and that's it? I would pay for someone to do it, but the amount I earned it really doesn't make sense for me to spend money getting someone to do my self assessment for me.
Thanks.

Sncjw

There's a list what can be deducted as expenses on gov website

sprucegs

Thankyou ^ looks like it can all go into allowable expenses.

On another note, I registered as a handyman. My business name is my first name initial and surname (e.g. D.Frank) I'm now concentrating on garden maintenance and have had leaflets made for D.F.garden Maintenance. Does this matter? All my invoices will still just have my name (D.Frank) on them.
Thanks.