Self Assessment timing

sheramber

That is why I am trying to establish what exactly the OP is reporting. 

 

He asks about reporting April to August only. What year April  to  What year August?

He could be reporting his figures completely wrong or he could be not explaining clearly  what he means. 

[Deleted User]

sheramber said:

That is why I am trying to establish what exactly the OP is reporting. 

 

He asks about reporting April to August only. What year April  to  What year August?

He could be reporting his figures completely wrong or he could be not explaining clearly  what he means. 

That was exactly my point - agree entirely and and why I asked what, for example, was recorded on the 2023/24 tax return. 

August 2023 to July 2024, August 2022 to July 2023 or something else?

Sarahspangles

MDMD said:

HMRC have changed the way self employed people report their income and prior to 24/25 send employed people who had reported income for their accounting period must now align to the tax year. As someone said before MTD for income tax won’t work if they don’t.

https://www.litrg.org.uk/working/self-employment/calculating-self-employed-profits/trading-income-basis-period-reform

And a summary here for those who don’t need the detail, just awareness? My daughter is self employed and mentioned this just yesterday, it’s a significant change for her.

https://www.litrg.org.uk/news/tax-return-changes-self-employed

[Deleted User]

Sarahspangles said:

MDMD said:

HMRC have changed the way self employed people report their income and prior to 24/25 send employed people who had reported income for their accounting period must now align to the tax year. As someone said before MTD for income tax won’t work if they don’t.

https://www.litrg.org.uk/working/self-employment/calculating-self-employed-profits/trading-income-basis-period-reform

And a summary here for those who don’t need the detail, just awareness? My daughter is self employed and mentioned this just yesterday, it’s a significant change for her.

https://www.litrg.org.uk/news/tax-return-changes-self-employed

It is indeed as it was when we moved from the old PY system in 1996/97. I’m genuinely surprised that it took twenty seven years for this to happen. Accounts aligned to the tax year was always going to be happen - long gone are the days when one could plan a year end best suited to their needs (seasonal income for instance). 

From the utilisation of overlap profits point of view it should have happened years ago! 27 years of inflation has reduced the value considerably. 

If HMRC change something you can be sure that it won’t be to the taxpayers’ advantage!

Archergirl

[Deleted User] said:

sheramber said:

That is why I am trying to establish what exactly the OP is reporting. 

 

He asks about reporting April to August only. What year April  to  What year August?

He could be reporting his figures completely wrong or he could be not explaining clearly  what he means. 

That was exactly my point - agree entirely and and why I asked what, for example, was recorded on the 2023/24 tax return. 

August 2023 to July 2024, August 2022 to July 2023 or something else?

I last did my tax return in August 24 that was Aug 23 to Aug 24. I just sell 1 thing on eBay and we sell some to shops, sold about 6K in the tax year, I am a pensioner with a small work pension, I pay tax on my pension. I have been self assessing for about 10 years and started selling in an August hence why I do it now in August. 

[Deleted User]

Archergirl said:

[Deleted User] said:

sheramber said:

That is why I am trying to establish what exactly the OP is reporting. 

 

He asks about reporting April to August only. What year April  to  What year August?

He could be reporting his figures completely wrong or he could be not explaining clearly  what he means. 

That was exactly my point - agree entirely and and why I asked what, for example, was recorded on the 2023/24 tax return. 

August 2023 to July 2024, August 2022 to July 2023 or something else?

I last did my tax return in August 24 that was Aug 23 to Aug 24. I just sell 1 thing on eBay and we sell some to shops, sold about 6K in the tax year, I am a pensioner with a small work pension, I pay tax on my pension. I have been self assessing for about 10 years and started selling in an August hence why I do it now in August. 

Unfortunately you appear to have been declaring incorrectly every year. 

The income which should have been declared in your 2023/24 tax return would normally have been for the year ending 31st August 2023 - in other words for the accounting year ending in the 2023/24 tax year - most definitely NOT what you declared. However, the rules have changed - see link below. You should have declared income from 1st September 2022 right through to 5th April 2024. 

You have now received a tax return notification for 2024/25. Normally, before the new rule changes, this would require you to declare your income and expenditure for the year ended 31st August 2024 - which you appear to have declared in last years return. 

But, as I say, the rules have now changed. I am not sure how this can be rectified without seeking professional advice. Bit of a mess to untangle I’m afraid!

https://www.bdo.co.uk/en-gb/insights/tax/partnership-tax/changing-how-business-profits-are-taxed-from-2023-24-basis-period-reform

sheramber

I last did my tax return in August 24 that was Aug 23 to Aug 24.


That is what I was afraid was happening.  You have been reporting the wrong  details every year. 

I think you need  an accountant to sort that out.

You could write to HMRC  and explain you have been reporting the wrong year’s self employed income but I think they may refer you to  professional help. 

[Deleted User]

sheramber said:

I last did my tax return in August 24 that was Aug 23 to Aug 24.


That is what I was afraid was happening.  You have been reporting the wrong  details every year. 

I think you need  an accountant to sort that out.

You could write to HMRC  and explain you have been reporting the wrong year’s self employed income but I think they may refer you to  professional help. 

Particularly with it being the transitional year with the long accounting period and utilisation of any overlap profits (none of which I chose to mention as the op may have enough to be contending with)