Help with Tax Return please

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Great thread I am now going to bank my earnings monthly also.x
 
I've just signed my business up this month but am yet to earn anything will they still want me to fill in a tax return
 
I've just signed my business up this month but am yet to earn anything will they still want me to fill in a tax return

The tax year runs from 6th April to the following 5th April.
Tax returns to be submitted just now online up to 30 January 2014 are for the tax year 6th April 2012 until 5th April 2013.

Since you did not have a business between those dates you do not need to do a tax return right now.

Your current tax year will be a partial year running from whatever date you started last month in 2013 until 5th April 2014. HMRC will send you paperwork regarding this nearer the time, but your tax return will be due either by 31st October 2014 if submitting a paper return or January 2015 if submitting it online.

Is this clearer?
 
The tax year runs from 6th April to the following 5th April.
Tax returns to be submitted just now online up to 30 January 2014 are for the tax year 6th April 2012 until 5th April 2013.

Since you did not have a business between those dates you do not need to do a tax return right now.

Your current tax year will be a partial year running from whatever date you started last month in 2013 until 5th April 2014. HMRC will send you paperwork regarding this nearer the time, but your tax return will be due either by 31st October 2014 if submitting a paper return or January 2015 if submitting it online.

Is this clearer?

Much much clearer thank you so much for your help x
 
I hope to give an accountant all my info about ingoings and outgoings every April. No accountant has mentioned anything about me needing to do anything online and I hope it stays that way! I'm guessing I don't need to do the online bit coz someone will have already done the maths etc for me on paper in April?
 
I hope to give an accountant all my info about ingoings and outgoings every April. No accountant has mentioned anything about me needing to do anything online and I hope it stays that way! I'm guessing I don't need to do the online bit coz someone will have already done the maths etc for me on paper in April?

Yes your accountant will probably do it for you but your bill will reflect this.
I strongly urge people to get to grips with there accounting themselves. I didn't like it when starting but now it necessary evil and I don't keep putting it off because it's stressful.

If you get a good system in place it makes filing everything online simple.

As many of you know I use KashFlow and i'm not being funny but this has done nothing but help my business thrive. It gives me the usual reports but on top of that, business health reports and reports on what products have sold the most by % and value as well as how much payment we have taken by different sources (IE Card, BACS, Cash, Cheque etc) by % and value, it gives an insight to my business and what's doing well and what's not. It's invaluable.

Yes it costs about £25 a month but your tax returns etc (if you put in the settings your Government Gateway Login) you click a button and it calculates it and you confirm it then it pings it to HMRC and files it for you. How easy is that! It saves you a fortune on accountants. My accountant has a login to the system and just over see's the end of year accounts before signing them off himself.

P.S - Add it's tax deductable of course ;)
 
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I didn't realise your supposed to keep the appointments. All appointments are on my phone diary, I don't delete them. Coming from a family of accountants I keep proper records. Will be asking them about the appointments tho.

A friend of mine was investigated once (we are both small time self employed). She said that it frightened the life out of her, as she didn't keep proper records, but she learnt a lot from it.
 
If you write your appointments on your spreadsheet do you really need to keep phone appointment record or appointment book? Xx
 
Do I have to take my tax credits into account when calculating my income

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Do I have to take my tax credits into account when calculating my income

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I believe tax credits are not to be taken into account when calculating income. They are non taxable as they are technically a "tax back".
 
I just wanted to encourage those who are just starting out to look at getting an accountant.

Accountants don't have to be horribly expensive or scary and a decent one should easily save you more than they cost. You might have to shop around to find one you like and who suits your style.

I pay £210 a year incl VAT, he's an ex tax inspector so knows his stuff, is located just around the corner and has a team with him so someone is always available if I have questions/worries/panicky moments.

I recommended him to a friend who's also a therapist. She'd been doing her own tax returns as her situation is quite straightforward but when she went with him he got a big (as in really big) refund for her as she'd not been claiming for half the stuff she was entitled to.

Obviously some people will always prefer to do it themselves and that's great and all I wanted to say is don't be scared by the prospect of getting an accountant.
 
When I started up I used a rubbish accountant ( he was a book keeper but described himself as an accountant - he was implicated in fraud case and did time...etc!)

Changed to a very good accountant..but he has become expensive as his business has grown (costs £600 a year).:eek:

This year I'm going to go it alone..as I did in the very early days. I did a 'complete your own tax return' one day course and I'll be submitting my own 2013//2014 tax return....Wish me luck in June lol!

I think the important thing is :

All the money needs to balance......so you should be able to see:

money that came in from treatments ( written spreadsheet or record ), money spend on products /training advertising/printing ( backed up with receipts for each item )
Always keep records of any money you have taken as 'drawings'.......ie money you've spent /lived off /drunk. and any money you have left over.

Your profit for the year is:

money you take from treatment minus the cost of doing business


If you have bought a bottle of wine, done the shopping or lived off any of that money ..it is still profit, but you've spent it ( taken it as drawings )
 
What happens when your at a loss ie put a lot of your own money into the business. I've been using money my partner gives me as 'pocket money' to help pay for courses etc x

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One other question. I was on benefits before starting up so do I include this in my yearly earnings? This is so confusing seeing I only started in march 2013 so only have 1 month to self assess x

Sent from my GT-I9505 using SalonGeek mobile app
 
One other question. I was on benefits before starting up so do I include this in my yearly earnings? This is so confusing seeing I only started in march 2013 so only have 1 month to self assess x

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Yes that will need including in your earnings. You should have some paper work saying how much they have paid you. Im not sure what it is called if it is a p45 like when you are employed. All that info needs to be entered.

If you are currently working at a 'loss' which is normal for a new business, you wont have any tax to pay... But it still needs entering on your self assessment.
So add up what you've spent (& keep the receipts to prove this) in the outgoings/expenses section.
Add your income/earnings & enter those figures. It will calculate the loss for you.
This 'loss' can be carried forward to your next tax year, so If you are carrying a loss of £2000, you get to earn that back tax free next year.

Hope that helps. Xx
 
Benefits aren't an earning...
This will need to aware of the date when you went self employed.
And put in your tax return anything related to your business and that includes your training courses.
I don't see why you would be at a loss unless you had a salon with lots of over heads. If your practicing on clients but not charging them for your time, make sure you cover your product. Ie if you intend to charge £15 for a spray tan charge for your solution say £5. That way you always have money for product.
X
 
Ps what benefits are we talking about x
 
Job seekers is classed as an income, if you've had £5,000 from them that will be deducted from your £9,600 tax free allowance. They wouldn't allow you to earn £9,600 tax free on top of £5,000 JSA. If you are talking housing benefit & child benefit no that wont be included as an income. So best to clarify with HMRC first on your personal situation. They have always been more than helpful with any queries I've had regarding myself assessment.

I can also see why she would be at a loss, setting up equipment, stock etc for all treatments can be expensive... (Mine was) Plus its only her 1st month on the assessment.

Xx
 

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