Querying Accountants Tax Return and 19th April 2021 HMRC C19 Support- taxable or not taxable?

sheramber

You cannot alter your turnover to suit you.

Your turnover is exactly that- the total money received.

You need to  make a list of your queries and sit down with your accountant  and work through them to find out waht teh differences are and why.

[Deleted User]

textbook said:

purdyoaten2 said:

textbook said:

Couple of things-  my expenses (from my bank statement) as I worked it out to be-   £ 9804.81 or £9796.92  (I'll double check it) BUT clearly different to accountants figures!!!!   These are from the things I've purchased but the accountant put- in box (31)  £9356,   WHY  such a difference?    Do they actually check every receipt?  There may be few receipts missing, possibly in myfro flat.  Have they missed out expenses missing a receipt?

 I'm thinking of re submitting the tax return with higher figure for expenses.   If I fill in the form will I have to add in difference figures into different categories  e.g. phone fax, and stationery, car, van, wages.   This could be troublesome because I guess I'll have to categorise each expense?

What's the link for me to submit my own tax returns?

Might be a bit late in the day! Maybe better to sit with your accountant for the completion of 2021/22.  To whom do you pay wages? 

No need to categorise - three entries -  turnover, expenses, profit. What methodology is used for the car and van- mileage allowance only or actual costs? If the latter, has capital allowances been claimed? 

Are all of the expenses allowable?
Presumably you are using the cash basis

I don't pay anyone a wage!  That confused me.   

Petrol  is purely the amount paid- it's pretty obvious on the bank statements e.g. shell £103  etc  I don't work it out from mileage.


Not sure all the expenses are allowable e.g. I put a physio invoice through but I'm not sure that's allowable. Would they not include something if there's no receipt?  Do they really check every receipt? questionable expenses-  ebay/amazon?giffgaff phone cost/mountain warehouse- clothes/vistaprint .

I'd like to practice putting the expenses into the right category so I can do it myself next year.

Accountant used the following categories with me-

costs of goods bought for resale or goods used

wages, salaries and staff costs

car, van and travel

phone, fax and  stationery

accountancy, legal and other professional fees

other business expenses

Is it easy to categorise?




What do you mean using the cash basis?  Sorry didn't understand that.


If categorising expenses becomes too complicated, I could trust the accountant's figures and just alter the turnover figure.  That would be simpler, what do you think?

I honestly think, from your answers, that you are not in a position to submit a return to include your self-employment and need professional assistance. Just before submission you must agree to the following:

I declare that the information I’ve given on this tax return and any supplementary pages is correct and complete to the best of my knowledge and belief.

I understand that I may have to pay financial penalties etc

Unless you are completely confident that you can stand over the submission, and are able to answer any queries raised by HMRC  I would not be completing the return. 

Go through the expenses and turnover with your accountant and agree that it is correct before authorising submission. I would be asking what claims have been made by way of capital allowances for the car and van if a mileage allowance is not claimed. 

textbook

[Deleted User] said:

textbook said:

[Deleted User] said:

textbook said:

Couple of things-  my expenses (from my bank statement) as I worked it out to be-   £ 9804.81 or £9796.92  (I'll double check it) BUT clearly different to accountants figures!!!!   These are from the things I've purchased but the accountant put- in box (31)  £9356,   WHY  such a difference?    Do they actually check every receipt?  There may be few receipts missing, possibly in myfro flat.  Have they missed out expenses missing a receipt?

 I'm thinking of re submitting the tax return with higher figure for expenses.   If I fill in the form will I have to add in difference figures into different categories  e.g. phone fax, and stationery, car, van, wages.   This could be troublesome because I guess I'll have to categorise each expense?

What's the link for me to submit my own tax returns?

Might be a bit late in the day! Maybe better to sit with your accountant for the completion of 2021/22.  To whom do you pay wages? 

No need to categorise - three entries -  turnover, expenses, profit. What methodology is used for the car and van- mileage allowance only or actual costs? If the latter, has capital allowances been claimed? 

Are all of the expenses allowable?
Presumably you are using the cash basis

I don't pay anyone a wage!  That confused me.   

Petrol  is purely the amount paid- it's pretty obvious on the bank statements e.g. shell £103  etc  I don't work it out from mileage.


Not sure all the expenses are allowable e.g. I put a physio invoice through but I'm not sure that's allowable. Would they not include something if there's no receipt?  Do they really check every receipt? questionable expenses-  ebay/amazon?giffgaff phone cost/mountain warehouse- clothes/vistaprint .

I'd like to practice putting the expenses into the right category so I can do it myself next year.

Accountant used the following categories with me-

costs of goods bought for resale or goods used

wages, salaries and staff costs

car, van and travel

phone, fax and  stationery

accountancy, legal and other professional fees

other business expenses

Is it easy to categorise?




What do you mean using the cash basis?  Sorry didn't understand that.


If categorising expenses becomes too complicated, I could trust the accountant's figures and just alter the turnover figure.  That would be simpler, what do you think?

I honestly think, from your answers, that you are not in a position to submit a return to include your self-employment and need professional assistance. Just before submission you must agree to the following:

I declare that the information I’ve given on this tax return and any supplementary pages is correct and complete to the best of my knowledge and belief.

I understand that I may have to pay financial penalties etc

Unless you are completely confident that you can stand over the submission, and are able to answer any queries raised by HMRC  I would not be completing the return. 

Go through the expenses and turnover with your accountant and agree that it is correct before authorising submission. I would be asking what claims have been made by way of capital allowances for the car and van if a mileage allowance is not claimed. 

If I get audited, and the accountant has submitted the figures will they deal with the auditors?  If I submit, do i have deal with them?

I can go back to my accountant but he is unlikely to want to go through all the figures I would have thought considering I only paid £190.   Just don't know what to do

[Deleted User]

If I was in your position I would get this years form submitted first and foremost with the obvious corrections that need to be made. Henceforth seek an alternative accountant but expect to be paying at least double -not least for peace of mind . Don’t forget that any fees are tax deductible.

textbook

[Deleted User] said:

If I was in your position I would get this years form submitted first and foremost with the obvious corrections that need to be made. Henceforth seek an alternative accountant but expect to be paying at least double -not least for peace of mind . Don’t forget that any fees are tax deductible.

I can't get through to the accountant on phone.   If I submit it myself (I've used their expense figures) not mine i heard it's only if large red flags are triggered that you get auditied, what are these?

I would guess van expenses are the costs at the pump plus MOT and van repairs.   

[Deleted User]

And the cost of the van itself - do you have an understanding of how capital allowances work?

Unfortunately what you’ve heard is factually incorrect - HMRC can investigate a return for any reason, including randomly.  

Regrettably, I am not sure that I can be of any more assistance to you any my advice still stands. 

Jeremy535897

If you don't file your 2021/22 tax return by 31 January 2022 you will get a £100 fine. You will pay interest on late paid tax and NIC, and a 5% penalty on tax and NIC not paid by 28 February. More interest and penalties accrue for longer delays in filing returns and/or not paying tax due. You would be best trying your accountant again, but failing that submit the return yourself, using the more pessimistic assumptions (her expenses figure, your SEISS figure). Accountants are very busy in the run up to 31 January so that may explain the lack of a reply. You can amend the 2021/22 tax return for errors, and ask for a refund if tax is overpaid, at any time from 72 hours after submitting it to 31 January 2024.

Turnover should be your sales, and excludes SEISS grants. Then you put SEISS grants in the separate box as you describe. If you are on the cash basis (last year's return should tick a box asking this question if you are), include only sales you were paid for by the end of the tax year (assuming you make up accounts to 5 April). I assume the two grants you mention of £1,619 were SEISS 4 and 5? If so, this is the figure to enter for SEISS.

Claim the expenses your accountant has. Physiotherapy, for example, is not allowable for tax purposes. You don't need to categorise expenses on your level of turnover. Complete SA103S and just put in turnover, expenses that are allowable, and SEISS. If you are on the cash basis, only include expenses paid, not those outstanding at the year end. Your previous year's return may indicate if any capital allowances have been claimed (but if you are on the cash basis, the van will have been treated as an expense).

On your figures, class 2 NIC should be £158.60. Class 4 NIC is 9% of taxable profits (including SEISS) above £9,568. If this is your only income and you are in England or Wales, income tax will be 20% of your taxable profit over £12,570.

Your accountant is likely to check each invoice you provide, and ask for more information where it is not clear what the business purpose of the expense is. HMRC will only look at any of this if there is an enquiry into your affairs. As purdyoaten has said, enquiries can arise for all sorts of reasons, including random checks, but the worst error you would be likely to make is if you get the SEISS figure wrong, as HMRC always check that.