Tax Return

[robtoon]

Hi,

This is my very first post and looking for a little bit of advice if possible.

I'm filling my tax return (last minute I know) and not sure on a couple of things.

I have a full time job on which I pay full tax and insurance.

I also have my own part time business run mainly from a website. I filed a self assessment form for this last year but as it was just starting off I posted a loss, which was expected.

This year I wanted to put some more money into the business and was offered some old stock of computer consumables from an old colleague (so this would be a second part time income). I saw this as an ideal opportunity to be able to sell on with profit, thus putting more money into my other business.

I found a business buyer for my cartridges and agreed to supply stock on monthly basis. So, an initial outlay made quite a sizeable profit.

In the second year of my website trading, my turnover increased but I spent a lot more on stock and advertising, so actually still made a loss (although this current year - next tax year - look really good)

So, currently my main self employment is showing a loss but my second temporary income shows a profit. Over the two incomes I perhaps made about £1500 profit in total. Is this okay to do?

Will the loss from my website business be offset against the profit of my second income?

Obviously I'm wanting to declare it but with it looking so much different to last year's return, will this spark an investigation (or is this normal).

Sorry if this is confusing, my heads battered.

Hope someone can help. Thanks in advance.

[elainec100@cheapaccounting]

Not sure from the above if you have one or two businesses - difficult to tell.

Fill in one or more SA103s plus any other applicable SA supplements plus SA100.

Losses from self employed can be offset against other income - make sure you fill in box 32 to do this as you would have dine last year.

Get a move on though! :)

[robtoon]

Thanks for that reply. Sorry for the confusion.

I have one full time job - fully taxed etc. Not classed as self employed for this. I also have my own business - which is mainly web based (this posted a loss). Two businesses in total.

The third income stream was simply a one-off opportunity to by some disused stock from somebody - this is not linked to any other employment but would be extra income which I am declaring.

Obviously I am worried that this might trigger an inestigation because my total turnover would be much bigger than last years, wasn't sure if this was normal or not.

Thanks again.

[elainec100@cheapaccounting]

Shouldn't trigger anything.

[robtoon]

Thanks again, altohugh I'm not doing anything wrong just thought may may have been alerted to big increase and paid a visit.

Excellent though, thanks for your time.

[GillespieBS]

Depends how big the additional turnover was. You may have crossed the VAT threshold.

[robtoon]

What is the VAT threshold?

My current permanent salary is £26000
Website turnover - £1200 (approx)
Additional turnover - £12000 (approx)

Actual profit stands around £1500

Does this help?

[Williams lester]

VAT threshold is £68k, so nothing to worry about there.

[robtoon]

That's good then.

What rate of tax would I pay on the extra income?

Thanks again.

[elainec100@cheapaccounting]

That's good then.

What rate of tax would I pay on the extra income?

Thanks again.


Depends on your total income.

The software will do the tax calc for you.

[robtoon]

My current permanent salary is £26000
Website turnover - £1200 (approx)
Additional turnover - £12000 (approx)

Total £39200 (approx)

Actual profit stands around £1500

[elainec100@cheapaccounting]

You will be taxed on profit (not on turnover) - on these figures you would be taxed at 20% on the profit but this is a guide only.