Sole trader self assessment - just to clarify

moneysaverz83

Hi



I'm just inputting the data into tax return, and just need to clarify, since I can't find the specific figures / sometimes they change...



- is room as office still £4 per week?



- is mileage still 45ppm on the first 10,000 miles?



- the savings account interest changed didn't it? I don't declare interest up to a certain amount on savings?



- I pay into a personal pension. Do I put in the total amount I've paid in into that year or add into the box the tax relief? My payments increased slightly, is it worth putting into the 'additional info' box?



Thank you:money: and all the best

Dazed_and_confused

is mileage still 45ppm on the first 10,000 miles?

Business mileage is (providing relevant rules are met)

the savings account interest changed didn't it? I don't declare interest up to a certain amount on savings?

You have invented this. There has been no change to whether savings interest is taxable or not for a very long time (if ever). All taxable interest needs to be declared and unless you have unused Personal Allowance you will be taxed on it. The tax rate may be 0% for some, or all of the interest you declare.

I pay into a personal pension. Do I put in the total amount I've paid in into that year or add into the box the tax relief? My payments increased slightly, is it worth putting into the 'additional info' box?

With a relief at source scheme you include the gross contribution, your payment plus basic rate tax relief added by the pension company.

And explaining the increase can't do any harm in the additional info box but isn't really necessary.

tacpot12

I don't think Dazed and Confused is correct about Savings Interest. The Personal Savings Allowance was introduced in April 2016. If you only pay Basic Rate of Income tax, you can earn upto £1000 of interest without having to declare it on your Self-Assessment form. See https://www.gov.uk/apply-tax-free-interest-on-savings

Dazed_and_confused

You have totally misunderstood this.

There is no "allowance" for savings interest.

All interest which was taxable before April 2016 remains taxable and must be declared when filing a Self Assessment return.

If you don't declare taxable interest then you could expect to be investigated by HMRC.

Some or all of that interest might be taxable at one of the two 0% tax rates currently in force. The savings starter rate or savings nil rate (commonly, and confusingly, known as the Personal Savings Allowance).

TheCyclingProgrammer

£4/week for working from home is for employees.

As a sole trader you can apportion your household costs according to the number of rooms and time spent using the room OR use a flat rate.

https://www.freeagent.com/guides/expenses/working-from-home-expenses-sole-traders/

00ec25

Dazed_and_confused wrote: »

All interest which was taxable before April 2016 remains taxable and must be declared when filing a Self Assessment return.

is the correct answer

00ec25

TheCyclingProgrammer wrote: »

£4/week for working from home is for employees.

As a sole trader you can apportion your household costs according to the number of rooms and time spent using the room OR use a flat rate.

https://www.freeagent.com/guides/expenses/working-from-home-expenses-sole-traders/

and if you use the flat rate, note carefully it starts only when you works at home for at least 25 hours per month

moneysaverz83

Thank you for your replies.



Erm, I was told by an accountant friend I can use the £4 per week and have done so in the last 9 years of returns (I think it used to be £3 per week but increased at some point)



Have I screwed up?



Have I undersold or oversold myself with that figure then?



I do CPD work at home, work emails and keep track of accounts. I don't know how many hours?

00ec25

moneysaverz83 wrote: »

Thank you for your replies.



Erm, I was told by an accountant friend I can use the £4 per week and have done so in the last 9 years of returns (I think it used to be £3 per week but increased at some point)

Have I screwed up?

Have I undersold or oversold myself with that figure then?

I do CPD work at home, work emails and keep track of accounts. I don't know how many hours?

many people have heard of the £4 per week, but many fail to understand that is the employee rate, not a self employed rate.

HOWEVER, it is "understood" that HMRC will turn a blind eye to sole traders using that rate since it is such an "insignificant" claim. naturally that particular take on the rules is not officially written down:

https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim47825

TheCyclingProgrammer

Yes I wouldn’t worry about getting it wrong with the £4/week. If you work from home full time then the reality is you’ve probably been under claiming all of these years.

tacpot12

Dazed_and_confused wrote: »

You have totally misunderstood this.

There is no "allowance" for savings interest.

All interest which was taxable before April 2016 remains taxable and must be declared when filing a Self Assessment return.

If you don't declare taxable interest then you could expect to be investigated by HMRC.

Some or all of that interest might be taxable at one of the two 0% tax rates currently in force. The savings starter rate or savings nil rate (commonly, and confusingly, known as the Personal Savings Allowance).

Thanks for reiterating this point. I was relying on the fact that the page I provided a link to stated that "If you complete a Self Assessment tax return, report the extra interest there." (my underlining). But i have checked the SA150 Guides to completing your tax return for 2016-17 and 17-18 and they confirm that Dazed and Confused is and was correct!

Apologies to Dazed and Confused and the OP.