Tax return due, some advice please

[AWheating]

its simple if you have paid cis, they already have your tax and its your job to claim it back.

you have the 9440 threshold as i mentioned earlier, so first thing to understand is if your profit is less than this then you will get every penny back you have paid minus any national insurance you may have to pay.

so for example lets say your total earning/turn over was 20,000. The company has paid 20 percent of this to the tax man, so the tax man holds 4,000. You then work out what your total profit is after all expenses/costs of your business.

say your total profit was 16,000. take away the 9,440 your allowed before tax which is 6,560. 20% of 6,560 is 1,312. take this away from the 4,000 you have already paid and the amount you have overpaid is 2,688. Minus any NI you have to pay.

Any non cis work will need to be added to your totals but because you have yet to pay tax on this will decrease the amount you get back. If 20% of this figure is more than the amount to come back from the cis work then you will need to pay the difference in tax to the man.


you business costs can include van (fuel, insurance, service, mot, tyres, etc...), PLI, Registrations, Tools, home office (inc. household costs), Training, telephone, website, work clothing (inc washing them) and many other things if you can prove its for work.

 

[armyash]

its simple if you have paid cis, they already have your tax and its your job to claim it back.

you have the 9440 threshold as i mentioned earlier, so first thing to understand is if your profit is less than this then you will get every penny back you have paid minus any national insurance you may have to pay.

so for example lets say your total earning/turn over was 20,000. The company has paid 20 percent of this to the tax man, so the tax man holds 4,000. You then work out what your total profit is after all expenses/costs of your business.

say your total profit was 16,000. take away the 9,440 your allowed before tax which is 6,560. 20% of 6,560 is 1,312. take this away from the 4,000 you have already paid and the amount you have overpaid is 2,688. Minus any NI you have to pay.

Any non cis work will need to be added to your totals but because you have yet to pay tax on this will decrease the amount you get back. If 20% of this figure is more than the amount to come back from the cis work then you will need to pay the difference in tax to the man.


you business costs can include van (fuel, insurance, service, mot, tyres, etc...), PLI, Registrations, Tools, home office (inc. household costs), Training, telephone, website, work clothing (inc washing them) and many other things if you can prove its for work.

Thanks, that's lots of good info. I now also understand why I struggled with maths in school! 😀

How can I prove such things as Phone costs or the cost of washing my clothes?

 

[villa_tom]

Thanks, that's lots of good info. I now also understand why I struggled with maths in school! 😀

How can I prove such things as Phone costs or the cost of washing my clothes?

Just file all your phone bills and keep them on record, keep all receipts and paperwork.

as for claiming washing your clothes, I'm not sure as I've never done it. But I'm sure it'll just be a set figure that the HMRC sets each year

 

[armyash]

Decided to have a go myself.

Registered for the online self assessment so just waiting on my activation code from the government gateway before I can start. Watched an hmrc tutorial video and it looks straight forward, there seems to be plenty of help available from HMRC. If I feel like i'm missing too much info out I'll let an accountant sort it but after speaking to a couple of people I think i should have no problems.

 

[villa_tom]

Decided to have a go myself.

Registered for the online self assessment so just waiting on my activation code from the government gateway before I can start. Watched an hmrc tutorial video and it looks straight forward, there seems to be plenty of help available from HMRC. If I feel like i'm missing too much info out I'll let an accountant sort it but after speaking to a couple of people I think i should have no problems.

do it yourself mate. Its easy peasy lemon squezy 🙂

i do mine myself and it takes about 10 minutes.

 

[kirkgas]

I'm self employed and did mine online yesterday.

I made a loss in my first year but it was simple to do.

You are right these days, plenty people find it easy to make a loss :-(

 

[kirkgas]

Ok thanks I think I get it now.

I'm not expecting to be 'rewarded', if i get anything back it will be a bonus.

I'm more concerned with doing things the right way and not getting in trouble.

I work for a company on a self employed basis and they pay the tax - is that normal?

It depends on the company policy, I'm self employed and do some work in two different colleges, both tax me at source every month, it's their policy although my accountant suggested it wasn't the best way for me, but to be honest if they didn't take it at source I would put it away anyway, but at the end of the year he does my accounts and I claim £0.40 per mile which comes off my taxable portion, can't remember what else he claims for me, don't care I just sign the forms haha, that's what he gets paid for, but I got rebates totalling about £4k the other month, plus the benefits back from taking dividends from our family business rather than wages etc

 

[armyash]

I have kept all my receipts for phone costs, tools, uniform etc. Hopefully it's clear the other expenses I can put down.

I will keep a diary for this next tax year and keep a note of everything coming in and out which will make things easier to calculate for the next self assessment. Something I should have been doing this year but didnt cross my mind but now i know.

 

[stevetheplumber]

personally i would use an accountant they will find much more than you will to set against tax

 

[armyash]

personally i would use an accountant they will find much more than you will to set against tax

now i'm thinking that might be the best thing to do! I will attempt it myself but if i'm missing too much I will just pass it over to an accountant before i submit it.

Thanks