Tax Self-Assessment Newbie

[webboy]

Hi all

I have just stated up a small affiliate internet company and wish to pay taxes on my earnings. As I am very new to this and wish to give the tax self-assessment a try I have managed to put together a small excel spreadsheet of my incomings and outgoing (nothing to complex) totaling every month. Should I go for a more professional approach in using some a tax software or would this be suitable for tax man if asked.

Also any tips on the tax self-assessment would be much appreciated

[elainec100@cheapaccounting]

Have you registered as self employed, read here:

http://www.franklyaccounts.co.uk/gettingsole1.php

HMRC will require you to complete a self assessment - this is what it looks like:

http://www.hmrc.gov.uk/forms/sa103f.pdf

When did you start trading?

[lortel]

You need to phone the tax office and tell them when you start as a business (i.e. your business starts from the date you make your first sale). You can telephone the Newly Self-employed Helpline on 0845 915 4515. I found them very helpful. This will automatically trigger a self-assesment form being sent at the appropriate time. They will also be able to tell you about how to apply for national insurance exemption if you qualify.
Your self assesment form will include a self-employment sheet which will ask for minimal info and I found easy to fill in. If you are still in full time employment any loses would be ofset against your employed earnings.
Its all far simpler than you would imagine and your spreadsheet sounds fine, although i'm no expert, you just need to chose when your financial year will start/end and total up all your monthly figures to get the annual figures for your self assesment tax form.
Barry
5inchrail.com

[webboy]

Excellent.. !! Thanks..

I just hope its all very easy to all fill out and they don’t take some much money from my affiliate sales I make .. On overage would I be right is saying roughly 1/3 of my earring will go to taxes?

Stated trading 1 September trading and i have just called them on the number given

[elainec100@cheapaccounting]

If you started trading on 01/09 then your first self assessment will be 2009 / 2010 which needs to be completed by 31/01/11!

You can use this to work out roughly how much you will have after tax:

http://www.franklyaccounts.co.uk/taxcompform.php

If you have small earnings I would suggest reading this as well:

http://www.hmrc.gov.uk/forms/cf10.pdf

[MyAccountantOnline]

Hi all

Should I go for a more professional approach in using some a tax software or would this be suitable for tax man if asked.




Hi Excel sheets are fine as long as they record all income and expenses.

In my experience I often find clients get a bit bogged down with Excel sheets - they can get a bit cumbersome, time consuming and its very easy to make a mistake in adding colums etc., I therefore recommend a free bit of software to my clients - VT cashbook. Might be worth a look -

http://www.vtsoftware.co.uk/cashbook/index.htm

I give clients a discounted fee when they use this as it makes my job quicker and easier and you will generally find if you use an accountant the tidier you keep your records the less fees you will pay.