Tax Return

[mowandgo]

Just completed my tax return from April 2013 to April 2014. I did it D.I.Y. no accountant. I have a very good spreedsheet what i keep an acurate record of income and outgoings. This makes every aspect of running my little business much easyer. In previous years my mother was my accountan and caused lots of family arguments and put me in the dark about the running of my business. Now iam D.I.Y. things are much better I can see exactly what I need to be charging for jobs, who owes me money, how much van & machinery costs ect. The point iam trying to get too is all though I fully understand all the figures I submitted on tax return I do not understand how they calculate it all I have done some reading online and asked friends with small businesses but keep getting vauge over complex ansewrs. I think this subject will be very useful to any one submiting an on line tax return.

[hamdogg]

It's good to have control of your own business, I just like to use my account as he can find tax relief I couldn't!!

[Two Acres]

I'm a amateur wood owner, but I do work for myself as an photographer , (I've been in business 27 years and counting). In the first few years I did the books myself, then I got help in. My advice would definitely be to get an accountant. A good accountant will save you more money than you'll pay them. Also whats the best use of your time? Trying to do accounts that you don't really understand or doing what you're good at? Accountants are professionals and they understand tax relief, they save you money, go find one

[Wolfie]

The point iam trying to get too is all though I fully understand all the figures I submitted on tax return I do not understand how they calculate it all I have done some reading online and asked friends with small businesses but keep getting vauge over complex ansewrs. I think this subject will be very useful to any one submiting an on line tax return.

 

 

This won't be easy to explain but i'll try.

 

Starting at the net profit figure that you would have from your accounts, adjustments need to be made for personal use (these could be motoring costs, telephone, etc). Other adjustments are (if your big enough to need a Balance Sheet) to add back asset depreciation or profit/loss on disposed assets - this is because the tax man allows for assets differently than how you may have in your accounts (look on HMRC website regarding Annual Investment Allowance, AIA, and balancing allowance).

This will give you an Adjusted Profits figure which is what your tax is calculated on.

The first £10k will be tax free - this is whats call your personal allowance. And next £32k ish will be taxed at 20%.

You also have to pay NIC tax which is about 12%.

You can deduct any CIS tax that you've paid during that year.

You also have to show any income from dividends / bank interest that you've received but this probably won't change your tax bill by much as it's usually taxed at source.

 

Has that confused you enough? It has me and i roughy know what i'm doing!

[slack ma girdle]

File your return on line and use the hmrc softwear.

It does it all for you.

 

Sent from my GT-S5830 using Arbtalk mobile app

[doobin]

Best route for me is to do all my bookkeeping personally, but have an accountant submit it to HMRC. They know how far they can push things. For £250 it's not worth my time anyhow.

 

You don't loose any control of your business this way, you always know the bottom line from month to month.

[hamdogg]

Best route for me is to do all my bookkeeping personally, but have an accountant submit it to HMRC. They know how far they can push things. For £250 it's not worth my time anyhow.

 

You don't loose any control of your business this way, you always know the bottom line from month to month.

 

 

That's exactly what I do!! Worth every penny! Cause once I get my books back there's all sorts of tax relief he has put through lol

[batwomen]

Yes I do mine online so easy

[Pltreesurgery]

Best route for me is to do all my bookkeeping personally, but have an accountant submit it to HMRC. They know how far they can push things. For £250 it's not worth my time anyhow.

 

You don't loose any control of your business this way, you always know the bottom line from month to month.

 

 

I tried to do mine online last year, long story short, it had my head done in and I shat myself when it told me what I had to pay, went back to my accountant and he saved me nearly 2k

Worth every penny of his 250 quid fee

[mowandgo]

I have a fairly small turnover and I think £250 for an accountant is not realy going to save that much. I understand the tax banding ie 10k there is no tax and its 20% for upto 32k after. But what is an asset? All my assets depriciate if i put neat unleaded in my stihl fs460 it goes from being worth £400 to £0. My mate had a turbo over run and blew his engine if that happens to my van its worthless. How can tools be assets? The next I have trouble understanding is if you get a £500 tax bill does that mean you could of bought a MS260 or 560XP that year instead of buying tax? I guess you have your gross turnover and you subtract your expenses which gives you your net and the higher you expenses the better. I do struggle with figureing it out but alot of people i speak to do aswell. Thanks guys its getting clearer slowly lol.