Self employed and started to invest

newbielou

Hi I’m self employed, I’ve finally built my business to the point where I’m earning a reasonable income. I’ve just been approved to buy my house and this year have started regular contributions towards a private pension (not much but will increase once I’ve got my emergency fund together). I’ve also started investing into a stocks and shares isa with Monzo again not a huge amount but will increase when I’m able.

Im starting to worry about how difficult all this is going to make completing my tax return, is there an idiots guide, basic course or book that anyone can recommend so I can do my homework and hopefully avoid the anxiety. 

Sorry if I’ve posted this in the wrong place I wasn’t sure where was best.

thank you for reading 

Keep_pedalling

You can forget the ISA as far as your SA is concerned, but maybe you have reached the point where hiring an accountant would be wise. 

mebu60

The S&S ISA is irrelevant for tax purposes, effectively it doesn't exist. 

Your s/e earnings, costs etc and pensions contributions shouldn't be too difficult to complete if you keep your records and paperwork up-to-date. The self assessment form has links to to explanatory documents which may well be sufficient.

Try not to worry about it, millions of people get through it ok and after the first time you'll be a veteran. Well done on getting to this point in your business. If the tax return does prove a bit difficult engage an accountant. Their fee will be a legitimate tax deductible business expense. 

ColdIron

Pension contributions are not taxable, quite the reverse, you will receive tax relief automatically

ISAs are entirely free of income tax and capital gains tax and must not be declared to HMRC by yourself, they are effectively invisible

wmb194

newbielou said:

Hi I’m La self employed, I’ve finally built my business to the point where I’m earning a reasonable income. I’ve just been approved to buy my house and this year have started regular contributions towards a private pension (not much but will increase once I’ve got my emergency fund together). I’ve also started investing into a stocks and shares isa with Monzo again not a huge amount but will increase when I’m able.

Im starting to worry about how difficult all this is going to make completing my tax return, is there an idiots guide, basic course or book that anyone can recommend so I can do my homework and hopefully avoid the anxiety. 

Sorry if I’ve posted this in the wrong place I wasn’t sure where was best.

thank you for reading 

There is tax software that’ll hold your hand through filling in a SA e.g., TaxCalc has a “simple step” feature that makes the standard SA forms look a lot less daunting and has a ‘help’ database.

https://www.taxcalc.com/

Confusedlad

Agree with comments so far.

I found the Daily Telegraph Tax Guide (c£15 via Amazon) a useful starting point and help. Good confidence builder and quite informative. Good tips and hints.

And a valid business expense!

newbielou

Keep_pedalling said:

You can forget the ISA as far as your SA is concerned, but maybe you have reached the point where hiring an accountant would be wise. 

Thank you, upto now I’ve never paid anyone something that I can do myself (frugal mindset) but it could be that I should now especially with the quarterly returns starting next year. Thank you

newbielou

mebu60 said:

The S&S ISA is irrelevant for tax purposes, effectively it doesn't exist. 

Your s/e earnings, costs etc and pensions contributions shouldn't be too difficult to complete if you keep your records and paperwork up-to-date. The self assessment form has links to to explanatory documents which may well be sufficient.

Try not to worry about it, millions of people get through it ok and after the first time you'll be a veteran. Well done on getting to this point in your business. If the tax return does prove a bit difficult engage an accountant. Their fee will be a legitimate tax deductible business expense. 

mebu60 said:

The S&S ISA is irrelevant for tax purposes, effectively it doesn't exist. 

Your s/e earnings, costs etc and pensions contributions shouldn't be too difficult to complete if you keep your records and paperwork up-to-date. The self assessment form has links to to explanatory documents which may well be sufficient.

Try not to worry about it, millions of people get through it ok and after the first time you'll be a veteran. Well done on getting to this point in your business. If the tax return does prove a bit difficult engage an accountant. Their fee will be a legitimate tax deductible business expense. 

Thank you for some reason I thought I’d have to declare it as an expense, a profit and a disregard  I have a tendency to overthink 🤦‍♀️

newbielou

Confusedlad said:

Agree with comments so far.

I found the Daily Telegraph Tax Guide (c£15 via Amazon) a useful starting point and help. Good confidence builder and quite informative. Good tips and hints.

And a valid business expense!

Perfect thank you 

wmb194 said:

newbielou said:

Hi I’m La self employed, I’ve finally built my business to the point where I’m earning a reasonable income. I’ve just been approved to buy my house and this year have started regular contributions towards a private pension (not much but will increase once I’ve got my emergency fund together). I’ve also started investing into a stocks and shares isa with Monzo again not a huge amount but will increase when I’m able.

Im starting to worry about how difficult all this is going to make completing my tax return, is there an idiots guide, basic course or book that anyone can recommend so I can do my homework and hopefully avoid the anxiety. 

Sorry if I’ve posted this in the wrong place I wasn’t sure where was best.

thank you for reading 

There is tax software that’ll hold your hand through filling in a SA e.g., TaxCalc has a “simple step” feature that makes the standard SA forms look a lot less daunting and has a ‘help’ database.

https://www.taxcalc.com/

Do you know if this is compliant for the new quarterly returns starting next year? That’s the next job on my list to sort out 😂. Thank you

wmb194

newbielou said:

Confusedlad said:

Agree with comments so far.

I found the Daily Telegraph Tax Guide (c£15 via Amazon) a useful starting point and help. Good confidence builder and quite informative. Good tips and hints.

And a valid business expense!

Perfect thank you 

wmb194 said:

newbielou said:

Hi I’m La self employed, I’ve finally built my business to the point where I’m earning a reasonable income. I’ve just been approved to buy my house and this year have started regular contributions towards a private pension (not much but will increase once I’ve got my emergency fund together). I’ve also started investing into a stocks and shares isa with Monzo again not a huge amount but will increase when I’m able.

Im starting to worry about how difficult all this is going to make completing my tax return, is there an idiots guide, basic course or book that anyone can recommend so I can do my homework and hopefully avoid the anxiety. 

Sorry if I’ve posted this in the wrong place I wasn’t sure where was best.

thank you for reading 

There is tax software that’ll hold your hand through filling in a SA e.g., TaxCalc has a “simple step” feature that makes the standard SA forms look a lot less daunting and has a ‘help’ database.

https://www.taxcalc.com/

Do you know if this is compliant for the new quarterly returns starting next year? That’s the next job on my list to sort out 😂. Thank you

Not sure; almost ready? 

 

DRS1

I had a look and I think they will roll it out in Spring 2026 - so cutting it fine if you need to comply from April 2026.