Self Assessment

HappyGamer

Hi.

I am registered as self employed and plan to continue as self employed so I need to fill in a self assessment.

I am confused about the turnover and trading allowance as I earnt less than £1000.

Let's say for example that I earnt £830 and £30 of that was to buy items I am selling.

I have no other income and I have no expenses.

Based on that example, what amount would I put under Turnover and what amount would I put under Trading Income Allowance?

Thanks.

Daz2009

Turnover is the value of goods/services sold so if you took £830 that's your turnover
Deduct the cost of the goods you bought gives you your gross profit
Then deduct any expenses you paid out in the course of running your business gives you your net profit,which is what you're taxed on

HappyGamer

Daz2009 said:

Turnover is the value of goods/services sold so if you took £830 that's your turnover
Deduct the cost of the goods you bought gives you your gross profit
Then deduct any expenses you paid out in the course of running your business gives you your net profit,which is what you're taxed on

Thanks! Do I just put that amount under Turnover or do I put that amount under Trading Allowance? Or both?

The Trading Allowance is £1000 so is more than the turnover, but I don't know whether you take it off Turnover (leaving me with £0 in this case) and write down how much of the allowance you've used or whether you write the actual Turnover and then how much of the allowance you've used...or something else lol.

Daz2009

I don't know what trading allowance is.
Does this help ?
https://www.litrg.org.uk/tax-guides/self-employment/what-trading-allowance

pramsay13

If your gross income is less than £1000 you don't even have to tell HMRC. 
If you've already registered for Self Assessment and been asked to complete it then £830 is your turnover and £1000 is your trading allowance.
If you intend to turn over more than £1000 next year then crack on, otherwise it's probably worth deregistering for self assessment.

HappyGamer

pramsay13 said:

If your gross income is less than £1000 you don't even have to tell HMRC. 
If you've already registered for Self Assessment and been asked to complete it then £830 is your turnover and £1000 is your trading allowance.
If you intend to turn over more than £1000 next year then crack on, otherwise it's probably worth deregistering for self assessment.

Thanks. I'm already registered and hoping it will be a higher turnover for next year. I won't be using the full allowance though so would I put £0 in turnover and £830 under trading allowance?

Daz2009 said:

I don't know what trading allowance is.
Does this help ?
https://www.litrg.org.uk/tax-guides/self-employment/what-trading-allowance

Thanks. I'll take a look and see if it tells me how the assessment needs to be filled in.