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Self Assessment question

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  • Self Assessment question

    Hi all
    This may be a silly question and I think I know the answer, but I'm going to ask anyway just to be sure!
    I have just started out and have registered for self assessment. As my business started in the middle of the tax year my first self assessment will be for the tax year 2011-2012 so I'm thinking it doesn't have to be done on line until Jan that right or should I expect to have to do one this January? I also work full time if that might make a difference...

  • #2
    If you started in mid 2011-2012 I would think you would do accounts up to 31/3/2012 which are due I think online by end october 2012. You could do it with a different year end but I find it easier to go with the tax year - especially if you have paye too.
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    • #3
      Your first tax return will be issued to you in April 2012. You will thn have till January 2013 to submit online your return for the period start of business to april 2012.
      full time mum and very very part time crafter.


      • #4
        Your tax period runs from the start of your business in 2011 to the day before in 2012. You will receive a self assessment form to complete in April 2012 which has to be submitted by the end of January 2013 if online. If your tax year ends say July 2011, you complete the forms or on line in August 2012 you will then receive the amount of tax you need to pay by the end of Jan 2013. Remember that they also assess for the following year based on the previous years figures so in January you will have to pay 50% of the estimated tax for the following year with the balance in July 2013.


        • #5
          Hang on a mo. In my head you do it a year behind.

          This year's tax form is for business you have done between April 2010 and April 2011 so Fran will need to do her form after April 2012.
          She can send in a paper version before October 31st 2012 or do it online before January 31st 2013.
          So you are right Fran.

          If you have registered you should get a reminder sent to you at the right time.
          Some people do it there and then and relax
          some people hang on until the last moment and get stressed ....but they get to keep their money in the bank longer earning interest. Interest? Oh I've forgotten what that is!!!!!!


          • #6
            Oh. Caroline and I must have been typing at the same time. Great minds? Or just time for a coffee break?

            The paying some of the next year's tax in advance kicks in when you earn over a certain amount. Fran will only have done half a year's trading so she might not be asked to do it but it's good to be expecting it as when it first happened to me I got such a shock I nearly got a heart attack.


            • #7
              So when Fran does her tax return she can keep £8,105 (personal tax allawance) before paying tax and when we do ours this year we can keep £7,475.

              I can't for the life of me find a figure for that threshold that triggers off paying in advance.
              Caroline - help? You usually have these things at your finger tips......


              • #8
                The figure is if your tax bill is over £1000.00 (the actual tax payable not your profit/loss) then you have to pay another 50% up front and a further 50% in July. So if you file a tax return say in September 2011 for the period Sept 2010 to Aug 2011 and the bill of tax owed to HMRC is say £1200.00 you will have to pay £1200.00 plus £600.00 by the 31st Jan and a further £600 in July.


                • #9
                  Thanks everyone, I really appreciate you taking the time to reply. At the moment this is just a hobby that I want to make a small amout of money back on and I don't see my turnover being more than about £600 this year with little profit so hopefully I won't be getting too much of a shock!


                  • #10
                    You can also apply for NIC exemption certificate think this applies to earning s/e under about £4K but this figure could have changed as well. It may also be worth checking your employment contract as to whether you can earn elsewhere even for yourself as some firms are quite strict on this ruling.


                    • #11
                      Remember to check the HMRC site for updates.

                      I believe you have a choice as to year end. But if I remember correctly I decided it was easier for tax purposes to do the start date to the end of the financial year. if you started your business this year then the first tax return would be next year either 31st Oct 2012 paper format or online 31st Jan 2013

                      Last year the HMRC did startup business workshops to help the newly self employed with completing the self assesment form and informing about allowances, limits and calculations for different items (car usage, home etc). I cant find the link on the site but it could be worthwhile checking with them to see if they still run them or with business link to see if there is something similar.