Ads

Collapse

Announcement

Collapse
No announcement yet.

Confused about tax return

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Confused about tax return

    I am just nearing the end of my first ever tax return and despite making a loss of £2271 i appear to owe the tax folk 30p !!!! Does this sound right to you ? I am also employed part time, is that perhaps the reason ? What's your thoughts x

  • #2
    It is probably linked with your part time PAYE, it could be there was a slight discrepancy in their way of coding your tax on the payroll system this happened to me one year for a small amount of I think 22p. The IR also tend not to refund on tax losses when you are also on PAYE, unfortunately.

    Comment


    • #3
      Hi.
      Did my first one ever this year too and despite paying PAYE it said I owed 4k. When I recovered I phoned them and after waiting three weeks for my local tax office to be able to access my records was told I didn't owe anything. It was confirmed on paper.
      I do hope it was the one and only.

      Di.

      Comment


      • #4
        Hi,

        Are you trying to do your return online? (I assume you are) If so, I had this issue the 1st time I went to complete the form, but I went back though each page and realised there are 2 places where you need to fill in your loss for the year, and if you don't fill it in both it will think you owe tax.

        I can't remember the exact pages you need to fill in your loss, but one was the page directly after you filled in your turnover/expenses etc for self employment and the 2nd page was a couple of pages after that.

        I'm on PAYE as well as being self employed and have never had a problem getting a rebate on a loss for the past 4 or 5 years, as it asks you if you want a rebate or if you want to offset for next year.

        Hope that helps,

        Claire
        Website; www.midshiresmakers.co.uk
        Facebook Pages: www.facebook.com/weedoncraftmarket
        www.facebook.com/craftshoppingexperience

        Comment


        • #5
          I made a mistake with mine and thought I owned them £129 but after trawling back very carefully page by page and really going through it again I found that I had placed £1610.11 instead of £161 !!

          I then double checked and triple checked page by page and it ended up I got a tax rebate...........yaaaaaaa

          Was very confusing for me for the first half an hour but then it just sloted into place and I found it easy in the end.

          hope you get it sorted.

          Pauline
          Personalised Wedding Cake Toppers

          Comment


          • #6
            Originally posted by P.Pitstop View Post
            I am just nearing the end of my first ever tax return and despite making a loss of £2271 i appear to owe the tax folk 30p !!!! Does this sound right to you ? I am also employed part time, is that perhaps the reason ? What's your thoughts x
            Pitstop, what is your craft? Please dont take this the wrong way but a loss of £2271 in one year!!! How can you afford to carry on? was this money mainly materials or fairs? I think you could perhaps make a business plan with a good money chart and try stick to it. That just seems such a massive loss to me, I would think twice about whether I should carry on or not. I know we do crafts for the fun too and not just the money, but a loss of over £2k surely isnt that much fun.

            Comment


            • #7
              Just wondering if the '1' on the end of £2271 was a finger slip and it was supposed to be an exclamation mark! I sure hope so as that figure would pay 5 months of my mortgage! Selina

              Comment


              • #8
                Pitstop???

                You've got us all wondering. Please let us know.

                Comment


                • #9
                  Originally posted by Selina View Post
                  Just wondering if the '1' on the end of £2271 was a finger slip and it was supposed to be an exclamation mark! I sure hope so as that figure would pay 5 months of my mortgage! Selina
                  Its my first year too and I made a bit bigger loss than that.Luckily I didnt owe them anything tho.

                  Im employed part time too.

                  Obviously we have different circumstances P.Pitstop so it can be possible that you owe the pennies.It all depends on the info given.
                  https://folksy.com/shops/GrimmExhibition


                  http://poisonedapplecraftuk.blogspot.co.uk/

                  Poisoned Apple Theatre - Handmade Crafts on Facebook

                  Comment


                  • #10
                    Originally posted by P.Pitstop View Post
                    I am just nearing the end of my first ever tax return and despite making a loss of £2271 i appear to owe the tax folk 30p !!!! Does this sound right to you ? I am also employed part time, is that perhaps the reason ? What's your thoughts x
                    Just take the amount you earned from your job, minus the loss. and if the result is more than your personal allowance, you pay tax.
                    As has been said, if you are putting a loss on your Tax return, there is a special box you must put it in! dont forget that these returns are computor read so everything must be in the right place.
                    On getting big bills from the tax, I once got one for £1.2 million, Its a "mistake" that they tend to make if they think you havent sent in the return on time, often they will cross in the post!

                    Comment


                    • #11
                      Originally posted by spagbog View Post
                      Pitstop, what is your craft? Please dont take this the wrong way but a loss of £2271 in one year!!! How can you afford to carry on? was this money mainly materials or fairs? I think you could perhaps make a business plan with a good money chart and try stick to it. That just seems such a massive loss to me, I would think twice about whether I should carry on or not. I know we do crafts for the fun too and not just the money, but a loss of over £2k surely isnt that much fun.
                      Well mine was roughly the same but I set up in the February so the Tax return was for the first 2 months of trading and included all the stock & materials I bought for starting up. I don't think being £2k down after 2 months is bad at all.
                      http://www.craftynclothy.com

                      http://www.folksy.com/shops/craftynclothy

                      http://craftynclothy.blogspot.com/

                      Comment


                      • #12
                        Hi,

                        Craftynclothy - Ill be over the moon if someone posts on here to correct me, but I dont think you can claim stock on hand as tax deductable.

                        It only enters the equation so to speak when you sell it - and the subsequent profit (or loss) from that sale is carried onto your tax records

                        Other than that - it sits in the corner looking at you !

                        That said, at the end of the day I can't imagine it makes a big difference if you account for your stock as a one off purchase or bit by bit as you sell it - but Im sure the tax man has his (why is the tax MAN not a tax woman ?) reasons.

                        All the best

                        Steve
                        www.nilasbeads.co.uk

                        Comment


                        • #13
                          I agree with Steve-Bead. Surely you will already have accounted for the stock when you bought the materials to make the stock? Please correct me if I'm wrong
                          www.littlebead.blogspot.com
                          www.twitter.com/littlebead

                          Comment


                          • #14
                            Originally posted by janetdc View Post
                            I agree with Steve-Bead. Surely you will already have accounted for the stock when you bought the materials to make the stock? Please correct me if I'm wrong
                            I sell bought in stuff (cloth nappies, toiletries etc.) as well as handmade craft stuff so the stuff that's bought in goes in the accounts on the day it's purchased.
                            http://www.craftynclothy.com

                            http://www.folksy.com/shops/craftynclothy

                            http://craftynclothy.blogspot.com/

                            Comment


                            • #15
                              Hi,

                              Its not just the materials that you buy that counts as stock - completed items as well - i.e A TV shop full of ready to sell TVs

                              The stock is listed as an asset on the balance sheet - but as said is not tax deductable just because you have purchased it.

                              It can become tax deductable where the stock sits unsold and looses value against what you paid for it - in this case it can be a good idea to value your stock on hand each year end and record the loss in value - not the total stock cost - but loss in its relative price.

                              Of course, if stock becomes out of date or cannot be sold, it can be thrown away and then the entire cost could be written off !

                              This my laymans understanding of it all - but its the way I run my business and seems to be correct - but Im not an accountant !

                              All the best

                              Steve
                              www.nilasbeads.co.uk

                              Comment

                              Working...
                              X