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Becky_simon

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Ok ladies and gents!

I'm trying so hard to get organised to do my flaming online self assessment there r just a few more things I need to add on and then hopefully I can go on and complete it.
My q is - I'm not earning anywhere near enough to be taxed, so am I right in thinking I pay VAT but I don't need to claim it as an expense?
The only things iv put as an expense are: (I'm mobile) miles, laundry, P&P, Drawings. Somewhere on there I'm stil trying to work out what and where to put my phone and car.
Is this right?
Also when I log the consumables iv brought can I just log: date, supplier, value or do I need to include all that as well as a breakdown of exactly what iv brought? I'm guessing not as my invoices show this x
 

Becky_simon

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I have another question! When I go to the bank I don't bank everything, most £1 £2 coins and silver I keep behind as change to give my clients, I do bank it once it builds up but I always leave some.
Is this right? I should I b banking everything and then take what I need out for change?
Thanks
 

Elaine143a

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Personally, I've always had an accountant do mine for me. Is this your first return? If so, maybe let an accountant do it for you and then next year, once you know what the accountant has done, try it for yourself?

hth xxx
 

Becky_simon

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Hi and thanks for replying.

Yes it's my 1st year and I was thinking along these lines too. Don't really wanna b paying an accountant as I'm sure once I get shown the ropes il be fine doing it myself x
 

Redduck

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Hiya Becky
The online self assessment really isn't as hard as you think it's going to be. I used an accountant for 15 years and then decided to go it alone last year when he didn't file my return. I set aside a day to do the online assessment and within an hour it was done.

You don't need to put everything you earn in the bank. You just need to write down everything you've earnt and then everything that is an expense in your accounts. Drawings don't count as an expense. If you spend the drawings on something for the business just add the receipt for that item to your expense column.

When you're doing your assessment you can go back to it so don't worry. If you have a problem phone them, i've always found them really helpful.

Good luck with it - I felt just the same last year when I did my first one.
 

Starholistics

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Just to add if you that you take totals and ignore the VAT unless you are VAT registered and then it is dealt with on a quarterly VAT return.
 

Steph86

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Keep a note of incoming, expenses, and it really is as simple as totalling it all up and entering those figres in the "earnings" and "outgoing" boxes on the assesment.

You can fill it in and save, and return to it as many times as u need before u submit all the info.

Miles- use aa route planner and postcodes, to add up ur mileage. And then x that by 0.45 (45p per mile) and that also goes along with ur outgoings. This covers fuel and wear and tear on ur car (so u can't then claim for anything else car related) I do this as my car is used for personal use aswell. I keep my receipts to show I have put fuel in my car but I do not add them into my outgoings.

It really isn't that hard. It should take about an hour/hour and 30 mins if u have done all ur calculations.

I have a "job" and I am mobile- in this case I had to have my p60 to show what I've earnt from that job.

Also, my business made a loss-as I was starting up, so my outgoings were quite a lot.

I do not bank all my money, just most of it for products etc.

Good luck, u'll be fine xx
 

Becky_simon

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ha!

You guys make it sound sooo simple :) I think i am making myself issues!

So where to I put drawings? On the outgoing box?

The VAT comment one person brought up...im not VAT registered so r u saying that i shouldn't be including the VAT on my invoices to me as an outgoing? Because thats what im doing, as in I am putting the total of goods + the vat for it as and outgoing. Confused.com :)
 

Sam81

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It does sound like you're making it far more complicated than necessary, especially if you're not going to be taxed. Really you just need to add up everything you've earned, then take away everything you've spent in relation to the business (expenses - this doesn't include what you've paid yourself - that's your profit) to work out your profit (or loss). You'll find when you go through the self assesment online that most of it doesn't apply to you as a sole trader on a low income. All they really want to know is what you've earned and what your expenses are.

It doesn't matter if you don't bank it all as long as all your records add up but I've found if I pay everything in, my bank statements match up to my books and this makes it easier for me to keep track of. Hth x
 

Steph86

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The vat is Part of ur outgoings- but to be vat registered u need to earn around 60k so don't worry about being vat registered.

What ever the total on ur reciept (the final amout paid inc vat + p+p) for products etc is what u add up for ur outgoings.

It was my 1st assesment too, and it really isn't as bad as u think.

I have just kept all my reciepts etc in a box inc the tax man ever wants to view them at a later date.

Tax free allowance is now around 8k.

Any "loss" (products etc out way earnings) can be carried over to the next tax year. Although the tax free allowance is not carried over.

Log in, take a nosey and hopfully put ur mind at rest, I part filled mine til I had my p60 then completed and submitted my return.

Xx
 

Becky_simon

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The vat is Part of ur outgoings- but to be vat registered u need to earn around 60k so don't worry about being vat registered.

What ever the total on ur reciept (the final amout paid inc vat + p+p) for products etc is what u add up for ur outgoings.

It was my 1st assesment too, and it really isn't as bad as u think.

I have just kept all my reciepts etc in a box inc the tax man ever wants to view them at a later date.

Tax free allowance is now around 8k.

Any "loss" (products etc out way earnings) can be carried over to the next tax year. Although the tax free allowance is not carried over.

Log in, take a nosey and hopfully put ur mind at rest, I part filled mine til I had my p60 then completed and submitted my return.

Xx
What does that mean I can carry over any loss to the next tax year? Are you saying if I haven't made a profit (which I havent) I think I have made an xxxx loss so that figure I put where? My current one im doing runs from Oct 2011 - April 2012, so your saying this xxxx figure can go into May 2012-April 2013? And where do I out this, I simply don't undestand sorry so sound stupid x
 

Becky_simon

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The vat is Part of ur outgoings- but to be vat registered u need to earn around 60k so don't worry about being vat registered.

What ever the total on ur reciept (the final amout paid inc vat + p+p) for products etc is what u add up for ur outgoings.

It was my 1st assesment too, and it really isn't as bad as u think.

I have just kept all my reciepts etc in a box inc the tax man ever wants to view them at a later date.

Tax free allowance is now around 8k.

Any "loss" (products etc out way earnings) can be carried over to the next tax year. Although the tax free allowance is not carried over.

Log in, take a nosey and hopfully put ur mind at rest, I part filled mine til I had my p60 then completed and submitted my return.

Xx
So I shouldn't be putting my P&P which includes the vat for that onto my expenses? Should I just be listing this as an outgoing?
 

ReVivebeauty

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.in this instance, outgoings /expenses = two words for the same thing. The amount of money you have spent on consumables, equipment, telephone, postage etc. etc. Its all the same thing. When putting down your expenses/outgoings put the total amount of the invoice including VAT and P & P charged to you. i.e. You may have spent £110 with S2 which includes VAT & delivery etc. The amount you will put down is £110. Hth

Edit: Sorry this probably isn't as clear as it should be: Business Expenses = things such as Telephone, Bank Charges, Accountancy, stationery, travel expenses etc.

Outgoings/Cost of Sales = purchases of consumables, stock etc.

So, as you are not VAT registered you should take the invoice total (inc VAT & P&P) as the figure you enter
 
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Becky_simon

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.in this instance, outgoings /expenses = two words for the same thing. The amount of money you have spent on consumables, equipment, telephone, postage etc. etc. Its all the same thing. When putting down your expenses/outgoings put the total amount of the invoice including VAT and P & P charged to you. i.e. You may have spent £110 with S2 which includes VAT & delivery etc. The amount you will put down is £110. Hth
Right so ive been recording the value of an invoice in my outgoings, taking off the P&P and recording that in my expenses bit. Technically im creating work for myself and I could just record this as one, in my outgoings? Is this right?
 

Becky_simon

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Another Q on my rolling thread ;-)

Where do I record the loan I had which started the business up?

It got paid off month by month for several months by my husbands money and has now been completely paid off by my husbands money. How do I show this loan has been paid off? Where do I record that?
 

ReVivebeauty

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Right so ive been recording the value of an invoice in my outgoings, taking off the P&P and recording that in my expenses bit. Technically im creating work for myself and I could just record this as one, in my outgoings? Is this right?
Correct, your making work for yourself. You don't have to separate out the VAT just put down the total invoice amount. As others have said on your other thread. An accountant will be worth his weight in gold. if you do all the entering i.e. Spread Sheets, Income on one, outgoings on another, collate all invoices, bank statements etc. etc. Then pass all this over to an Accountant, he will save you far more money than he will cost you by the time he makes adjustments for depreciation of equipment, laundry etc. etc. Things that you wouldn't even be aware that you could deduct.

Diane
 

ReVivebeauty

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Another Q on my rolling thread ;-)

Where do I record the loan I had which started the business up?

It got paid off month by month for several months by my husbands money and has now been completely paid off by my husbands money. How do I show this loan has been paid off? Where do I record that?
Becky, I really think an Accountant is the way to go. Especially as this is your first year. If you get an accountant to prepare accounts for you and submit your tax return this year, it gives you a basis for self assesment next year. I presume the loan was for equipment etc.. if so an accountant would be the best person to provide the right answers and make sure that you claim all that you are entitled to in terms of depreciation etc.
 

Becky_simon

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I think with all the answers Ive got from SG I could actually manage it myself.

I just need someone to TRY and clarify this loan thing for me. The loans was to start me up, it includes uniform, consumables, uv lamp,Infa red lamp, table, towels, advertising and insurance
 

ReVivebeauty

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I think with all the answers Ive got from SG I could actually manage it myself.

I just need someone to TRY and clarify this loan thing for me. The loans was to start me up, it includes uniform, consumables, uv lamp,Infa red lamp, table, towels, advertising and insurance
OK, I'm no accountant, so hopefully someone else will be able to help. However this information should probably be shown on the balance sheet as a liability if it remains unpaid or the Capital Account as Capital Introduced.
 

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The loan - I think you are going to have to show that you have recieved 2 lots of income, firstly the loan, then the 'loan' from your husband, then 1 expense which is the payment of loan.

It will show that you now owe your husband the amount instead of the loan company.

Income A = Original loan Amount
Income B = Amount your husband paid towards it (which in essence has been paid to your business as another loan for the purpose of paying off the original loan)

Expense A = All loan repayments

Although the original loan has been cleared by your husband, for the purposes of accounts your business still owes that money, so instead of owing the loan company it owes your husband.

Does that make any sense at all lol I can see it clearly in my head how it should look on paper but can't put it into words very well! :irked:
 

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