Self Assessment Tax Return

joughtib

Apologies if this thread is in the wrong place. I'm just trying to complete my first tax return for Mystery Shopping. It is for the grand sum of £10 in addition to my own salary of around 20K.

Once i've put the figures in, my tax bill is apparently £14!!! I'm obviously doing something wrong. Can someone give me any pointers.

TIA

silvercar

Try not putting the £10 in and see if there is a tax liability anyway, that would explain it. It may bit there is a small amount of tax to pay anyway and its not all down to the £10.

fengirl_2

Was there some allowance in your code number for the year which you have not included in your tax calculation....an expense allowance for instance?
You would be underpaid about 88p due to the rounding up on the tax tables - but I can only think of extra allowances as the reason for this underpayment.

Margaret_Skinner

joughtib wrote: »

Apologies if this thread is in the wrong place. I'm just trying to complete my first tax return for Mystery Shopping. It is for the grand sum of £10 in addition to my own salary of around 20K.

This is wonderful - exactly the thread I was going to start myself!! I do mystery shopping too and realise I should have done a tax return for the jobs which haven't been taxed but I haven't a clue where to start!

Can you tell me how you got as far as the self-assessment bit? I've gone online to the Inland Revenue website and got the self-assessment section but when I tried to proceed it said I should have a particular number on my form but I haven't got a form. I thought it was the ID code but it wouldn't accept that. I presume I've missed a step out - did you have to apply for a form first?

Margaret

Mikeyorks

Margaret - it sounds as though you have forgotten to shake a 6 to start!

You appear to have registered for the online facility ... but have you actually registered as self-employed? Which is the necessary first step - as there's a penalty for failing to do so. (within 3 months ??)

The initial pack you then get, should include a Unique Taxpayer Reference (UTR) (10 numeric characters + 'K' on the end) ..... which sounds to be the bit you're missing - as that's the ID by which the SA system knows you.

http://www.hmrc.gov.uk/sa/selfemp.htm

CannyJock

Don't forget to claim the associated expenses involved in being a mystery shopper.

Infact, don't forget to claim associated expenses involved in normal day to day work. I used to drop people off at hotels and pick them up from airports and didn't claim the expenses back for this.

Nothing feels better than that cheque back from the tax man once you've put in a claim for the previous 6 years

Margaret_Skinner

Mikeyorks wrote: »

Margaret - it sounds as though you have forgotten to shake a 6 to start!

You appear to have registered for the online facility ... but have you actually registered as self-employed? Which is the necessary first step - as there's a penalty for failing to do so. (within 3 months ??)

The initial pack you then get, should include a Unique Taxpayer Reference (UTR) (10 numeric characters + 'K' on the end) ..... which sounds to be the bit you're missing - as that's the ID by which the SA system knows you.

http://www.hmrc.gov.uk/sa/selfemp.htm

Mike - you're totally right! I realised the Mystery Shopping UK Forum had a section on tax & got some info from them as well so realised where I had gone wrong.

Phoned the Tax Office & they told me to write to my local office which I have done now so will await the necessary documentation. Obviously I'll have to pay a fine of £100 for late filing which is fair enough - does that include the fine for not registering as self-employed in the first 3 months does anyone know?

The bit I'm not sure of now is I did one job in Feb 2006 for a payment of £6 which presumably would come under the 2005/2006 tax year then my next job was in May of that year (so 2006/2007?) when I started getting into it properly. Would I be safe enough ignoring that £6 and just putting in records for 2006/2007 when I come to do the self-assessment?

Margaret

Mikeyorks

Margaret_Clark wrote: »

A) Obviously I'll have to pay a fine of £100 for late filing which is fair enough - does that include the fine for not registering as self-employed in the first 3 months does anyone know?

Would I be safe enough ignoring that £6 and just putting in records for 2006/2007 when I come to do the self-assessment?

Margaret -

A) The 'obvious' bit is the £100 for late registration ... which is just free-standing. The penalty for late filing is quite separate but, potentially mitigable if the tax due is less than £100. The penalty is £100 .. or the amount of the tax due if that is less than £100. Sorry.

As the £6 probably results in a max of £1.32 tax due - I would snopake it entirely from your conscience. After all you wouldn't want it going to the MP's allowance fund! Probably wouldn't buy the odd mother / son / daughter / wife / ex-wife etc etc .... a cup of coffee. Just file the 06-07 stuff .. and then take it from there?

Margaret_Skinner

Mikeyorks wrote: »

Margaret -

A) The 'obvious' bit is the £100 for late registration ... which is just free-standing. The penalty for late filing is quite separate but, potentially mitigable if the tax due is less than £100. The penalty is £100 .. or the amount of the tax due if that is less than £100. Sorry.

As the £6 probably results in a max of £1.32 tax due - I would snopake it entirely from your conscience. After all you wouldn't want it going to the MP's allowance fund! Probably wouldn't buy the odd mother / son / daughter / wife / ex-wife etc etc .... a cup of coffee. Just file the 06-07 stuff .. and then take it from there?

Mike - thanks so much for this - I'll take your advice! *opens drawer to get Tippex*

It's my own fault entirely so will just have to suck it up and shell out then make sure I'm a bit more informed in the future!

jopat

Hi,
I have been selling/testing the market since May 07 to see if there is a demand for my product.
I have not gone over the £4.000 band.

I would like any advice on when my reserch becomes a buisness? Will I get a £100 fine if I inform them, even if i'm not earning enough?

If so it seems silly that you only have 3 months to decide if you can make a buisness work.

Or do I only have to inform tax office if I earn over the tax band?

Any help please