Help: Tax Return First Timer

Lynsey12345 · 22 October 2018 at 1:32PM

Hi

Any advice here would be appreciated. I am filing a Tax Return for the first time for 2017/18. I started a hobby business last year and would be declaring total takings of £195...however the expenses for set up costs were much higher - would HMRC be understanding if I deferred this until next year when I have more profit to declare?

Other self-employment total is a low income of £1500 thereabouts with no expenses to declare after leaving paid employment in June 2017....I am guessing this is what they want to know more about? Or would they rather I just declare this next year too?

I have started filling in the Self Assessment and the final calculation is that HMRC owe me £1!!?? I can't see the point of spending more of my time, or HMRCs time, in processing my form for such small amounts? But I don't want to cause any confusion/trouble by not doing so.

Any help/advice would be greatly appreciated! Thank you :-)

Pennywise · 22 October 2018 at 2:37PM

You can't just declare income/expenses "next year" - a tax return is for a specific year. If your expenses exceed income in a particular tax year, then you report a loss for that year, and claim loss relief as per their rules, including possibly carrying it forward against a future profit.

Lynsey12345 · 22 October 2018 at 3:12PM

Ok great, thanks for the advice, I have been getting confused with previous advice I've received but you've explained it clearly to me now I know what to do going forward

Wenlock · 22 October 2018 at 4:07PM

Good advice from Pennywise regarding your self-employment.

You probably know this but just in case - don’t forget that as this Return covers the tax year starting on 6 April 2017 you must complete the Employment pages to declare the pay received and any tax deducted by your employer in the short period up to June 2017.

Help: Tax Return First Timer

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