Tax Return Confusion - Please Help!!

wannabedebtfree_2

I am just doing my 06/07 tax return online as I used to be an AVON rep, so being the honest person I am I declared myself as self-employed as well as having a employed job.

ANYWAY - I have just entered the details online and am confused about 2 things, so I was hoping someone might be able to help!

1) When it says turnover, do I put the profits AVON say I make from each invoice, or do I put the total amount the orders on the invoices come to, then take out the price I pay as my expenses leaving me with my net profit? This is really bugging me as I'm not sure what to do!

2) Why when I have put in the amount of profit I made in the 06/07 tax year (£659) and my employed earnings of £10619 gross, does it say I have to pay £302 in tax, meaning all those !!!!!!! orders delivered in the rain etc have made me a grand total of £357..........I thought I would have to pay about £130, there is no way I can find £302...........I am really confused as to why its worked it out like that...........please help!!!

The only thing I can think that has made it so silly is from my gross earnings my employers take out my pension prior to my tax, so has it made it look like I haven't paid enough tax on my employed job...........HELP!!!!

wannabedebtfree_2

Ok, slightly less panicked now as I just read in the instructions that its nett pay after superannuation that I have to declare, but I still need help with the other question!!

Many Thanks in advance!!

Cook_County

You calculate your turnover & profit using Generally Accepted Accounting Principles.

Thus you report gross income as turnover & claim expenses such as commissions, advertising travel costs, use of home, telephone, bad debts, postage etc.

wannabedebtfree_2

Thank you very much - you wouldn't believe that 12 years ago I took a level one accountancy course!! Why is it I can look at other peoples money and it makes sense, my own I go completely to pot!!

Cook_County

wannabedebtfree wrote: »

Thank you very much - you wouldn't believe that 12 years ago I took a level one accountancy course!! Why is it I can look at other peoples money and it makes sense, my own I go completely to pot!!

Then you sound just like the rest of us!

System

wannabedebtfree wrote: »

1) When it says turnover, do I put the profits AVON say I make from each invoice, or do I put the total amount the orders on the invoices come to, then take out the price I pay as my expenses leaving me with my net profit? This is really bugging me as I'm not sure what to do!

2) Why when I have put in the amount of profit I made in the 06/07 tax year (£659) and my employed earnings of £10619 gross, does it say I have to pay £302 in tax, meaning all those !!!!!!! orders delivered in the rain etc have made me a grand total of £357..........I thought I would have to pay about £130, there is no way I can find £302...........I am really confused as to why its worked it out like that...........please help!!!

Because your self-employed income is so low you can get away with filling in boxes 3.24, 3.25, 3.26, 3.74, 3.75, 3.76, 3.83, 3.90 and 3.92.

If your employed income was taxed correctly then you should only have to pay £659 @ 22% = £131.80 and because you have a PAYE source of income you don't have to pay it by 31 January 2008 as it can be collected over 12 months through your tax code from 6 April 2008.

If you post the amount of tax which was deducted from your employment we can have a look and see if your bill should be more.

Even if it is more as long as it's less than £2000 it can still be collected over 12 months via a restrcition in your tax code from 6 April 2008.