Receipts for online purchases

textbook

I put down Giff Gaff standing order every week as an expense as it's my phone payment.  i have no idea which email is registered to the account, likewise for my ebay and Amazon marketplace, do I need the email as evidence?  I don't receipts for these as its online.

Is HMRC Cols taxable?  This is the payment if youre on tax credits from government for cost of living crisis.  I believe it's not taxable.

Payments for ads for my business in local magazine or shop tax deductable?

When submitting tax return, do i need to put the yearly figure I pay for my private pension plus the 20% I get on top?  and it being for that tax year.  I just ticked yes, as i pay £120/month so put £1800 as figure in box  - £1440 /80 x 100 = £1800

On another note, if I worked three weeks under the construction scheme's 20% automatic payment, is this submitted differently or same then wait for rebate?

If you don't pay NIC 4 or not much but NIC 2 do you still get the same pension?

Jeremy535897

Best practice is to download online invoices in case you ever need to produce them.

Cost of living payments to tax credit claimants are tax free.
You can claim a deduction for business advertising costs.
You gross the net pension payment up.
You need to enter the tax paid under CIS in the box on SA103. Include the gross income in your turnover.
Class 4 is just tax. It carries no entitlement to benefits. But if you pay Class 2 in 2023/24 you will pay Class 4, as they both start at £12,570 profit.

textbook

When you say gross the net profit for the pension, does that mean just what I pay in (for the whole year) as a total figure or this figure divided by 80 then times by 100?   Also, as my profit for the year is £11,500 and under the tax threshold, does that mean I don't put the extra 20%. I guess i'd be losing that 20% going into my pension.  Previously both myself and accountants didn't even fill out this pension section or think it was a big deal!

Dazed_and_C0nfused

textbook said:

When you say gross the net profit for the pension, does that mean just what I pay in (for the whole year) as a total figure or this figure divided by 80 then times by 100?   Also, as my profit for the year is £11,500 and under the tax threshold, does that mean I don't put the extra 20%. I guess i'd be losing that 20% going into my pension.  Previously both myself and accountants didn't even fill out this pension section or think it was a big deal!

If you make pension payments using the relief at source method (RAS) and have earnings to allow it (within the pension contribution rules) then it is irrelevant how much tax you do or don't pay.

If your taxable profit is £11,500 you can in theory contribute £9,200 (net) and receive £2,300 in basic rate tax relief.  Not paying any tax doesn't alter that.

Submitting an incorrect return is never a great idea.  If HMRC pick up on that it could lead to them doubting other elements of your return.

textbook

Dazed_and_C0nfused said:

textbook said:

When you say gross the net profit for the pension, does that mean just what I pay in (for the whole year) as a total figure or this figure divided by 80 then times by 100?   Also, as my profit for the year is £11,500 and under the tax threshold, does that mean I don't put the extra 20%. I guess i'd be losing that 20% going into my pension.  Previously both myself and accountants didn't even fill out this pension section or think it was a big deal!

If you make pension payments using the relief at source method (RAS) and have earnings to allow it (within the pension contribution rules) then it is irrelevant how much tax you do or don't pay.

If your taxable profit is £11,500 you can in theory contribute £9,200 (net) and receive £2,300 in basic rate tax relief.  Not paying any tax doesn't alter that.

Submitting an incorrect return is never a great idea.  If HMRC pick up on that it could lead to them doubting other elements of your return.

Ok, I'm a bit dumb, I don't understand all your terminology, if I pay in £120/ month that's £1440/yearly totally coming out of my bank account into my pension.   Do I put this figure (£1440) or £1800  (£1440 divided by 80 then multiplied by 100) into the tax return box?   Lastly, if I'm earning £11,500 or near abouts will I still get the 20% added onto what i pay in?

textbook

Put gross figure in pension section so £1800.   Only ran though figures in bank statements once.  I'll double check with returns done by previous accountant then submit

[Deleted User]

textbook said:

Put gross figure in pension section so £1800.   Only ran though figures in bank statements once.  I'll double check with returns done by previous accountant then submit

£1800 is correct. Yes - you will get the basic rate tax relief of £350 added on.

SVaz

The best thing to do is have a free business  account like mettle and link it with freeagent accounting (also free with mettle) then everything you buy for business goes straight into your accounting software via bank feed.
You can then snap a screenshot of receipt / upload it to freeagent and match it to the payment.
Then at the end of the tax year,  everything is already collated ready to go into your Self assessment, which you can do straight from FA too.
Absolute simplicity and will become essential if MTD ever comes about for non Vat businesses. 

Every payment for advertising / printing / whatever is a tax deductable expense.
Anything you use / pay out for business use is a legitimate expense.  

textbook

SVaz said:

The best thing to do is have a free business  account like mettle and link it with freeagent accounting (also free with mettle) then everything you buy for business goes straight into your accounting software via bank feed.
You can then snap a screenshot of receipt / upload it to freeagent and match it to the payment.
Then at the end of the tax year,  everything is already collated ready to go into your Self assessment, which you can do straight from FA too.
Absolute simplicity and will become essential if MTD ever comes about for non Vat businesses. 

Every payment for advertising / printing / whatever is a tax deductable expense.
Anything you use / pay out for business use is a legitimate expense.  

Could try this, at the moment I'm using a personal account (Lloyds for business payments and expenses) and Barclays for personal stuff.  I just print off statement and add up (manually)  incoming and outgoing and then incoming from cash to work out the profit.

What's MTD?     How do I sign up for Mettle?

SVaz

MTD = Making tax digital.
VAT registered businesses already have to upload digital everything every 3 months,  rather than once a year with Self assessment.
MTD for non- Vat business is due to come online in 2025/26 but people are doubtful it will ever happen.

Mettle is owned by Nat west.   

https://www.mettle.co.uk/?gclsrc=aw.ds&gbraid=0AAAAAC-o6J-O4hI9zcD4G3-7zyHA0jefe&gclid=EAIaIQobChMIu4HDuOXKgQMVw-vtCh3sGAQOEAAYASAAEgJ_5PD_BwE

You get freeagent via them as a freebie,   it’s very simple to use once you’re used to it,   you can also create customisable customer estimates / invoices directly through it.

I, well my Wife as she does the books,  couldn’t manage without it when it comes to self assessment time.   I buy a LOT of materials as I’m a heating/plumbing engineer so you can imagine the pile of receipts.
The vast majority of customers pay me by bank transfer so you can match the bank payment to the invoice number.  
some insist on paying cash,   You can create a virtual ‘cash’ bank account in freeagent which is very useful.

textbook

SVaz said:

MTD = Making tax digital.
VAT registered businesses already have to upload digital everything every 3 months,  rather than once a year with Self assessment.
MTD for non- Vat business is due to come online in 2025/26 but people are doubtful it will ever happen.

Mettle is owned by Nat west.   

https://www.mettle.co.uk/?gclsrc=aw.ds&gbraid=0AAAAAC-o6J-O4hI9zcD4G3-7zyHA0jefe&gclid=EAIaIQobChMIu4HDuOXKgQMVw-vtCh3sGAQOEAAYASAAEgJ_5PD_BwE

You get freeagent via them as a freebie,   it’s very simple to use once you’re used to it,   you can also create customisable customer estimates / invoices directly through it.

I, well my Wife as she does the books,  couldn’t manage without it when it comes to self assessment time.   I buy a LOT of materials as I’m a heating/plumbing engineer so you can imagine the pile of receipts.
The vast majority of customers pay me by bank transfer so you can match the bank payment to the invoice number.  
some insist on paying cash,   You can create a virtual ‘cash’ bank account in freeagent which is very useful.

I could try it. Continue with my current method and do the two alongside each other and see how it goes.