New business self assessment questions....

Geordie81

Not sure if this is the right place for advice but here goes.....

I started a new business and registered as self employed last January (2018) and read up a lot about tax and completing self assesments etc. Everything has been fine but now I'm in a bit of a panic as think I may have to complete a self assesment for last January to April!

I can't remember receiving a notice from HMRC saying I have to complete a self assesment and my personal tax account says a self assessment is not due for 17/18 and I have nothing to pay.
I've also completed the online HMRC calculator and it say's I don't have to pay anything, with operating expenses and buying more capital equipment until April meaning my actual profit was less than £1,000.

If anyone can tell me if I'm correct in thinking I won't need to complete a self assessment by January 31st that would be most helpful. I think I'm just getting myself more mixed up the more I'm thinking and reading about it!

Thanks

TheCyclingProgrammer

If you registered as self-employed before April last year you would normally need to complete a tax return for the 17-18 tax year by 31 Jan 2019.

However, if you're certain you've not received a notice to file a tax return then you have no obligation to do so, especially as it sounds like you don't have any tax to pay anyway.

Dazed_and_confused

You sound like you do need to file a return.

You get a minimum of 3 months to file one after HMRC issue it.

So if one hasn't been issued the 31 January filing deadline doesn't apply to you.

A Self Assessment return is for the whole year, not just January to April.

Geordie81

Thanks. Would you know if I am able to double check with HMRC if I received a notice to file the return to make sure or would that not be possible?

Dazed_and_confused

my personal tax account says a self assessment is not due for 17/18

What more do you want than that?

You just need to ask HMRC to issue you with a return or notice to file for 2017:18. And make sure you file it within 3 months.

You may be due a refund depending on what other income you had in the year (job prior to becoming self employed?)

TheCyclingProgrammer

OP didn't mention what their self-employed gross income was for that tax year but if it was below £1000 (the trading allowance) then I don't think they have any obligation to notify HMRC and request a tax return for that tax year.

If it was above this then they should probably get in touch with HMRC who may then request a tax return but as mentioned above the deadline would then be 3 months from when it is issued.

OP - if you had been issued a notice to file a tax return it would say so on your online account.

Geordie81

I've realised there is a live web chat on the HMRC website and they have confirmed I won't need to file a return for 2017/18 as profits for self employment were less than £1,000.
I also received a tax refund for previous employment too.
Thanks for the replies, I can now relax and am pleased I was correct in the first place!

Dazed_and_confused

If you have a record of that we chat it would be sensible to keep it.

Because, based on what you have told us so far, HMRC are wrong.

with operating expenses and buying more capital equipment until April meaning my actual profit was less than £1,000.

On the basis you have used your Personal Allowance on your PAYE income (hence the repayment you have received) then tax is owed on the profits you have made.

polymaff

TheCyclingProgrammer wrote: »

OP didn't mention what their self-employed gross income was for that tax year but if it was below £1000 (the trading allowance) then I don't think they have any obligation to notify HMRC and request a tax return for that tax year.

The £1,000 trading allowance is for those who receive less than £1,000 before expenses and allowances. The OP seems to admit that he only gets the figure below £1,000 by offsetting expenses and allowances.

Dazed_and_confused

Good point well made.