Your self-employed tax return

Your self-employed tax return


Your Self-employed tax return One of a series of videos about online Self
Assessment tax returns. You’ve tailored your return. Now tell HMRC
about your self-employed income. The first question is about your annual turnover. If you didn’t trade for a full year, but
had you, and your income would’ve been over £85,000 you answer “yes”. For example:
If your business income over 6 months was £50,000, then for 12 months it would’ve
been £100,000. If your trading income is over £85,000 you
may need to register for VAT. You’ll also need to give detailed information,
such as listing expenses. We’re choosing ‘no’. Statements appear about your self-employment.
Choose those that apply. Many people will select ‘None of these apply’. Your business description goes on page 2. If you started or ceased self-employment during
the year, it’s important to enter the dates so HMRC can update your records. The next page is for your accounting details.
Enter your end of year date. When you start self-employment we recommend that you use 5th April
as this is the end of the tax year. Consider cash basis. If you answer ‘Yes’,
you may not be able to make claims for some expenses, capital allowances and loss relief.
Use the question mark for guidance or search for cash basis on GOV.UK. On this page, show your turnover and allowable
expenses. This is where you can claim the new £1,000
trading allowance. If you use this allowance you can’t deduct any other expenses or capital
expenses. If you don’t use the trading allowance and
your income is below the VAT threshold, just add together all allowable expenses and enter
a single figure, or you can enter them separately. The calculations are done automatically. You’re then taken to the Capital Allowances
page. With cash basis, you can only claim capital
allowances on business cars. Other tax adjustments are on the next page.
Include the value of any goods or services you’ve had for your own use, any losses
brought forward from an earlier year and any other business income. The next page is for losses. There’s a link
to a worksheet and helpsheet 227 with more guidance. These aren’t sent to HMRC. You only need to complete the tax deducted
page if you’re in the construction industry scheme to show contractor deductions. Only answer ‘Yes’ if you’re exempt from Class 4 National Insurance contributions.
The few exemptions are listed. There’s a screen for other information,
then check your entries on this summary page. If you’ve stopped self-employment tell HMRC. You’ll find more help and support on GOV.UK. Webinars and other videos about Self Assessment
are available from HMRC. Thanks for watching.

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