Tax return. Rough idea?

[anonymous-user]

Since my divorce from my husband (he cheated several times) and moving to Cornwall... and losing my job due to the employer going bust... I set up my own business. It’s baked goods mainly. Some jewellery pieces.

I made around £10,000 over 8 months. About to put my tax return through and it’s coming up as a shade under £500. I don’t have another job. Does that sound about right? I did have a job last year and earlier this year where the monthly NI was over £300 and the PAYE was around £300 too.

It’s my first time being self-employed and setting up my own business. It sounds too good to be true. So this doesn’t stack up for some reason.

I’m going to hand it over to an accountant. I don’t trust the online calculator.

Edited by Super_G on Tuesday 1st December 16:02

[Wombat3]

Your tax free allowance is £12500 for a start, what was your total income for the tax year from all sources & was any tax taken at source?

[rlg43p]

Wombat3 said:

Nope. doesn't sound right. Your tax free allowance is £12500 for a start

It would only be right it the total earnings from the previous job + the £10,000 took you over the £12,500 tax free allowance.

Make sure you are claiming expenses and allowances. If you aren't capturing the full details of expenses in the return you can claim a £1,000 allowance.

I'm not an expert, I've only done returns of my own. You may need to discuss this with an accountant of a software package like Taxcalc can be helpful.

[martnewts]

That amount may well be correct, it is possible that you have no liability to income tax but are liable to Class 4 National Insurance which is charged at 9% on profits above £8,632 plus Class 2 National insurance at £3 per week

[anonymous-user]

Thanks all for the replies. I ran it through a second software and it makes sense. I have also presented it to the accountant who charged me £120 for the privilege but she has submit it for me.

[Eric Mc]

£120 - a bargain.

[Simpo Two]

rlg43p said:

Make sure you are claiming expenses and allowances. If you aren't capturing the full details of expenses in the return you can claim a £1,000 allowance.

To clarify, 'expenses' is not dining out with clients, but anything you buy in for the business - from raw materials to phone, postage, fuel etc. Keep all receipts. And well done!

[Countdown]

Eric Mc said:

£120 - a bargain.

About average for filing a basic self assessment return IMO. I'd be very surprised if it took longer than 2 hours assuming the OP provided all the figures and the Accountant entered and submitted them.

[Eric Mc]

A joke - but accountants have a rubbish senses of humour. Goes with the territory.

[Countdown]

How long do you think it should take for an Accountant with a really good sense of humour to take a TB or P&L and file it with HMRC?

[Eric Mc]

Depends on how hard he/she is laughing.

[Jockman]

Might be wide of the mark here but.....

If the Accountant files the return do they take any responsibility for it?

[AMST09]

Accountants don’t responsibility for nothing, everything they send out says you are responsible for ensuring the accuracy of the details provided, tbf if you give inaccurate info how can they be responsible

[Eric Mc]

The situation is quite complex.

The first person in the firing line for a badly put together tax return (whether deliberate or otherwise) will always be the taxpayer. So, HMRC will always chase the taxpayer first.

HOWEVER, if the details on a tax return are found to be erroneous and a tax agent (usually an accountant, but not always) had a key role in putting the return together or verifying the return before submission, then the agent will also have to answer to HMRC.

If the agent is a member of a recognised professional body, it could have serious consequences for their career or business.

I would suggest you read up on the case of of Darren Upton.

https://www.thisismoney.co.uk/money/news/article-2...

[Countdown]

AMST09 said:

Accountants don’t responsibility for nothing, everything they send out says you are responsible for ensuring the accuracy of the details provided, tbf if you give inaccurate info how can they be responsible

They can't (and aren't, unless they've been glaringly incompetent). If the client presents a set of figures that are reasonable and consistent that's what the Accountant submits. HMRC don't expect Accountants to do an audit of each set of figures to confirm that they're accurate.