Self Assessment advice needed

[markthedoc]

Hi

I started my business on 20 August 2007. I am a sole trader and am not registered for VAT.
Do I have to fill a self assessment from in for the end of January or do I wait until next year when I've been trading for a year?

Thanks in advance for any advice received.

 

[Gillie]

If you have been sent a self assessment due to previous occupations etc then yes you do, but the tax returns being returned by the end of January latest refer to 2006-07 tax year ie the one that ended in April 2007.

 

[markthedoc]

No I haven't received a Self assessment form.
Thanks for clearing that up for me.

 

[Chris H]

Mark if you haven't filled in a self-assessment form before then best read up on it and learn what to do and what to record.

I was determined to do self-assessment until I actually tried it. Frightened the life out of me and quickly got in touch with an accountant from these boards!

 

[markthedoc]

Mark if you haven't filled in a self-assessment form before then best read up on it and learn what to do and what to record.

I was determined to do self-assessment until I actually tried it. Frightened the life out of me and quickly got in touch with an accountant from these boards!

Hi Chris

I've done the HMRC courses so I kinda know how to fill the forms in, obviously I've forgot most of what I learned now!
My business is fairly straight forward and I keep records so it shouldn't be too much trouble. I might look into getting an accountant though, just worried about the cost involved really.

 

[Basement_Studios_Ltd]

hey you will find it makes a saving having one of us bores on board!

(this isn't advertising by the way before I get slapped by admins again)..

we charge £150+VAT for most of our small sole traders, after reviewing a set of figures putting adjustments through for allowances, reviewing missing receipts etc most of my clients save at least £200 of tax. Mind, I've had clients that have saved £1000's because they were only telling the revenue what their income was!

Best Wishes for your business.



Rob Skinner

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yeah you will need to fill it in. I started in febuary and I had to fill one in a few years back. It'll basically be a whole load of zeros going into it and negative numbers it'd doubtful you'll have any tax to pay.

 

[alex redmond]

The self-assessment tax return that has to be submitted by the end of January relates to the year ending 5 April 2007. So if you do a tax return it will only cover whatever you were doing before you started the business.

You will save yourself a lot of trouble (and money) if you keep decent records from the start.
Have you registered as self-employed?

 

[DuaneJackson]

I might look into getting an accountant though, just worried about the cost involved really.

As others have said, the cost is justifable. See here for reasons why you shouldn't let the cost put you of.

 

[markthedoc]

The self-assessment tax return that has to be submitted by the end of January relates to the year ending 5 April 2007. So if you do a tax return it will only cover whatever you were doing before you started the business.

You will save yourself a lot of trouble (and money) if you keep decent records from the start.
Have you registered as self-employed?

Yeah I've registered as self-employed and have kept records from the start.

 

[spreadsheetsdirect]

I'm in the same position. I called them up last week to check as didn't want a £100 fine and the chap said that I'd get something around April time which will need to be in June/July.

 

[elaine@cheapaccounting]

I'm in the same position. I called them up last week to check as didn't want a £100 fine and the chap said that I'd get something around April time which will need to be in June/July.

Phil - I am not sure when you started trading but you may just want to check the info that you have been given.

The Key Dates for self assessment are:

Tax Year 2006/ 2007

30 September 2007 for submitting a paper self assessment return and to have the tax calculation done by HM Revenue & Customs

31 January 2008 for submitting a self assessment return if you are doing the tax calculation yourself

31 January 2008 for payment of Income Tax and Class 4 National Insurance for the tax year 2006 /2007.

For the second and subsequent years that you are self employed, you may be required to make a payment of Income Tax on account.

So for the tax year 2007 / 2008 - Payments on account will be due on 31 January 2008 and 31 July 2008.

 

[spreadsheetsdirect]

I started in July. I'm sure he said that my first assessment would the July date and then it would be January thereafter. He pulled my record up on his computer so hope it's right. Surely I can trust HMRC not to do the wrong thing!

 

[elaine@cheapaccounting]

Surely I can trust HMRC not to do the wrong thing!

that made me laugh!

If you started in July 2007 then your first self assessment (2007 / 2008) and tax payment will be 31/1/2009 with a payment on account for the tax year 2008 / 2009 also on 31/1/09 and then 31/7/09.

 

[miketombs]

Hi

I started my business on 20 August 2007. I am a sole trader and am not registered for VAT.
Do I have to fill a self assessment from in for the end of January or do I wait until next year when I've been trading for a year?

Thanks in advance for any advice received.

Just to clarify everything said, if you weren't self-employed, and didn't have capital gains or other non-employment income then you will only need to fill in a SA return for 2006/07 if HMRC sent you one, and it will cover the year from 6th April 2006 to 5th April 2007. It seems like you don't need to do anything at this stage.

The SA return for 2007/08 (due at the latest by 31st January 2009) will include your sole-trader earnings from 20th August 2007 to 5th April 2008, plus any other income for the 12 months to 5th April 2008.

The income to be included on returns for 2008/09 onwards depends on what period you draw your normal annual accounts up to. If you decide to close off each 31st August for example, then in the 2008/09 return you will include the twelve months to 31st August 2008, even though the earlier part of that had already been included in the previous year's return.

 

[markthedoc]

Cheers for taking the trouble to post Mike, I know where I am now.

 

[jholden]

Mark,

If you are worried about accountant fees most will give you either a free half hour or take the time to call you and most will quote a fixed fee for their work these days.

Rather than trying to go it alone for the fees involved it really is worth using a professionally qualified accountant, remember, we spend years training and taking exams for a reason.

Get a quote, use someone professionally qualified, let the accountant do his/her job which lets you get on with yours.

Good luck,

Jason