Urgent tax return questions! please help!

[emily22]

Hi there!
I really hope someone can help me with this.. Im doing my tax return online. I cannot afford to pay someone to do it so im doing it myself. Im stuck on one thing!

can anyone tell me what...

..an income tax loss is? Is this a loss that you have down as in 'overpaid income tax' or is this the loss that your business made in the tax year (07-08)?
I made zero profit last year and my accounts show that i made a loss so is this the income tax loss that its asking for?

Ive rang the self-assess helpline and keep getting told different things so im just more confused now!

I really want to finish my return tonight and submit it. I have a 4.5month old baby, a 7yr old, 5yr old and a husband! lol! So finding the time to do this has been hectic and i just want it out of the way now. Ive been doing it for months to make sure its all right before submitting it and just need to sort this last bit..

Any help would be sooo appreciated! xxx

 

[emily22]

.... sorry! one more question!...

When you are asked for the 'Total loss to carry forward after all other set-offs including unused losses brought forward' ... do i put in the loss that i made in the tax year (07-08)? So, id be carrying it foward to next year..? This is my 1st tax return btw! xx

 

[Missy G]

Hi Emily,
did you attend the free course how to do it online with the Inland Rev, they give you an example and a brochure on how to complete your SA?

 

[emily22]

hiya, no I wasnt able to unfortunately. I'd booked onto one but couldnt go as I was really ill when I was pregnant with my son so couldnt make it in the end! :-(

 

[Kim Lawless]

I think you'll find it means that you add up all your outgoings for the first year and this would include training, equipment, insurances etc, etc. EVERYTHING!

Then you deduct what you earned and the balance is what you carry forward. The reason for this is that you can then carry some of this loss forward next year too.

I hope I'm right. xxx

 

[hippy-chick]

I agree with Kim, but what I would suggest as this is your first time, is to make an appointment at your tax office for you to go in and get them to help you fill it in. I did this the first year and it gave me the confidence to then go on and fill mine in online for 2 years running.
I now pay someone to fill my tax return in, and its worth every penny.

Also, when I first registered as self-employed, someone from the tax office came to my home to talk me through how to keep my books. It was free of charge and they left me booklets of information to read over.

I now have a standing order that goes into a separate account on a monthly basis to cover a tax bill, but as I am ploughing every penny back into the business, I don't have a very big one, but its good to know the money is there just in case.