First self assessment tax return

fewcloudy

My wife is a hairdresser and went self-employed in June 16. She registered as sole trader at the start, and was told she would need to complete a tax return by end Jan 18. That's where I come in as she asked me to submit her tax return for her. She's got her UTR and a log-on for the website.


I'm hoping to do it tonight when I get in but I'm curious about the dates. For this return, am I dealing with all her earnings from when she started, up to April last year (17)? Or to present date? I'm guessing the dates must cover just one tax year to be able to make use/sense of her tax allowance.
Thanks
fc

TheCyclingProgrammer

Just for that tax year.

Mahsroh

It's for that tax year, so starting from 6 April 2016 (although in practice, June in your case) and ending on 5 April 2017

Dazed_and_confused

For this return, am I dealing with all her earnings from when she started, up to April last year (17)? Or to present date?

Neither, the return is for all taxable income for the entire tax year so if she received any employment wages/salary in that year it needs to be included. The return isn't just for the self employment.

fewcloudy

Thank you all, this all makes sense and confirms what I thought.


Dazed and confused - There would be other earnings in that tax year; her employed earnings from 5th April 16 to when she commenced self employment in June 16, so about 2 1/2 months worth. I hadn't planned on including those earnings because that was when she was employed and therefore those earnings have already been taxed. Her payslips for April/May/part of June 16 all show tax and NI deductions. It seems counter intuitive to offer them up as earnings to be taxed again?
Thanks again


fc

[Deleted User]

fewcloudy wrote: »

It seems counter intuitive to offer them up as earnings to be taxed again?
Thanks again


fc

Why do you think that it will be 'taxed again'?
The purpose of self-assessment is to calculate the tax due. At the end of this you will either owe tax are be due a repayment.

You include all earnings from all sources. You also include the tax already paid which will be credited against the bill.

You might be surprised at the final outcome as, based on what you have stated, your wife would only have utilised 3/12 of her personal allowances at her employment.

fewcloudy

[Deleted User] wrote:

Why do you think that it will be 'taxed again'?
The purpose of self-assessment is to calculate the tax due. At the end of this you will either owe tax are be due a repayment.

You include all earnings from all sources. You also include the tax already paid which will be credited against the bill.

You might be surprised at the final outcome as, based on what you have stated, your wife would only have utilised 3/12 of her personal allowances at her employment.

I guess I thought that it will be 'taxed again' because I haven't done this before.
I thought that if I included her earnings from when she was employed in April/May/June 16 it would just show (correctly) a higher level of earnings for the year than if I did not include it. Which in turn would equal a higher tax liability. Unless I showed that it has already been taxed, maybe by adding it to the amount that she is declares as expenses (like rent of the chair, hairdressing equipment, etc.)?


fc

TheCyclingProgrammer

fewcloudy wrote: »

I guess I thought that it will be 'taxed again' because I haven't done this before.
I thought that if I included her earnings from when she was employed in April/May/June 16 it would just show (correctly) a higher level of earnings for the year than if I did not include it. Which in turn would equal a higher tax liability. Unless I showed that it has already been taxed, maybe by adding it to the amount that she is declares as expenses (like rent of the chair, hairdressing equipment, etc.)?


fc

Can I ask why you are doing your wife’s tax return for her if you don’t know what you’re doing?

You have to include all income otherwise you cannot produce an accurate tax calculation. Obviously if your wife has used up her personal allowance on her previous job it will increase the tax due on her self employed earnings as income tax is calculated on all of your income as a whole.

You do not enter tax paid as an expense, there will be a specific box to enter it in.

Dazed_and_confused

I can only think you haven't actually read the tax return as if you had you would have slsurely realised that it is to declare details of all taxable income for a particular tax year.

If that element of completing it has come as a surprise maybe you should get professional help, even if just for the first return and then you will something you can follow in later years.

As purdyoaten2 mentioned it is quite possible that your wife could have paid too much tax for the year as a whole and if you don't include her employment income how will she ever get that refund?

[Deleted User]

op - have a look at the paper version of the employment sheet below. The questions will be the same on the online version (you are too late to complete the former). Note question 2 in particular.

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/605201/sa102-2017.pdf

fewcloudy

TheCyclingProgrammer wrote: »

Can I ask why you are doing your wife’s tax return for her if you don’t know what you’re doing?

Lol, good question!

Because she earns so little she didn't want to spend more money on getting a professional to do it for her. She works 3 days a week.
Because self-employed friends encouraged her to do it herself.
Because someone said to her it's easy, can you use Excel? (She can't, but she knows a man who can). Etc etc.
And other reasons even more feeble than those already mentioned if you can believe it.

House spent reading questions and answers on this forum has helped lots.
Thanks again.