Self Assessment Advice

[jbennett360]

HI all,

Just need a few things clearing up.

I went Self Employed in June 2017 (Sole Trader) and have been trading since that date. I've registered for the Online Government Gateway and that's all setup and running fine.

I was wondering when i'll need to file my first assessment, I'm assuming it will be after April 5th/6th of 2018? I'll be alerted by HMRC too, right?

There's nothing i need to do between now and then is there? There's nothing else i should have done between June 2017 and Now either is there?

I've read around a few articles that have appeared and I've basically confused myself of whats happening!

Some clarification would be great

 

[Newchodge]

You complete self assessments for every financial year, which ends on 5 April every year. You started trading in the financial year 2017/2018 so you have to complete your online self assessment by 1 January 2019.

I would strongly recommend that you start the process as soon as possible after 5 April 2018, so that you have plenty of time to iron out any snags that crop up. Any tax due will be payable by 31 January 2019, although you can pay it earlier.

The only thing you should have been doing is keeping good records and evidence (receipts, invoices etc) of your income and allowable expenses, so all you will need to do is fill the form in.

 

[jbennett360]

You complete self assessments for every financial year, which ends on 5 April every year. You started trading in the financial year 2017/2018 so you have to complete your online self assessment by 1 January 2019.

I would strongly recommend that you start the process as soon as possible after 5 April 2018, so that you have plenty of time to iron out any snags that crop up. Any tax due will be payable by 31 January 2019, although you can pay it earlier.

The only thing you should have been doing is keeping good records and evidence (receipts, invoices etc) of your income and allowable expenses, so all you will need to do is fill the form in.

Thanks for the quick reply.

I had thought this was the case, I was getting confused with dates for previous Tax years.

Everything I have in terms of Receipts/Invoices/Expenses etc are all stored digitally (I'm using FreeAgent). I'll look at keeping a printed copy too at the end of the 17/18 year.

I'd be looking at completing it the minute i get the notification/letter etc.

Edit: I forgot to mention the obvious too in my first post. I had registered with HMRC for Self Employed/Sole Trader for self Assessment and Class 2 NICs

 

[Newchodge]

I'll look at keeping a printed copy too at the end of the 17/18 year.

If you mean keeping the original as well as keeping it digitally, that is probably over the top. As long as you have a digital version of the printed version, that will do.

 

[Newchodge]

I'd be looking at completing it the minute i get the notification/letter etc.

There is no need to wait for that, just start it as soon as you are ready.

 

[Andri]

I would encourage you to keep both copies if you can. As an accountant for small enterproses, I know what a nightmare it can be sorting receipts and have not worked with a client keeping didgital receipts and can have logistical problems if no sharing is available etc. After year end, you can put the rrceipts away and destroy after 7 yrs. Consistency is key though...

 

[LanaW]

I would encourage you to keep both copies if you can. As an accountant for small enterproses, I know what a nightmare it can be sorting receipts and have not worked with a client keeping didgital receipts and can have logistical problems if no sharing is available etc. After year end, you can put the rrceipts away and destroy after 7 yrs. Consistency is key though...

Totally agree. It's better to do everything possible and do it in a decent way

 

[Andri]

Totally agree. It's better to do everything possible and do it in a decent way

Thanks for the echo @LanaW , the logistics of non printed invoices is really very disruptive to the accounting process. I'm currently working with a client who has all his invoices online and spreadsheet. It's impossible to verify the invoices unless we sit together and go through each one! This has now halted all the work. My suggestion to anyone unsure what to do is to keep a spreadsheet, number the invoice with the correlating number on the spreadsheet and pin together chronologically. Nothing beats good old fashioned bookkeeping. I'm really concerned about Sage etc makinh bookkeeping look so easy as scanning in invoices, there is no way someone can fully complete their business accounts this way which is going to lead to a lot of nightmares for us Accountants.

 

[Newchodge]

the logistics of non printed invoices is really very disruptive to the accounting process. I'm currently working with a client who has all his invoices online and spreadsheet. It's impossible to verify the invoices unless we sit together and go through each one!

Why?

 

[Scalloway]

Unless the client was absolutely useless at bookkeeping I wouldn't bother wasting time on checking every invoice. Many years ago I was taught then when you are doing an audit you only need check a sample to prove that the balance of probability is very high that everything is ok.