New to Self Assessment - Silly Questions!
Discussion
I'll try and keep this brief ...
I'm self employed, but I also have a YouTube channel. I became self employed in October 2023. My YouTube channel was earning minimum amounts then, which fortunately has changed in the last 6 months. For the latest self assessment, which covers April 2023 to April 2024, I haven't made enough to exceed the £12,570K limit, so I'm not expecting to receive a tax bill. I do have some questions though ...
1. I bought an Apple MacBook Pro that is 100% used for my self employed work and YouTube channel. If I didn't reach the £12,570K amount, how do I claim expenses on the laptop? It was around £2K. Do I need to sell it, re-buy another for 2024/2025, and then claim it as expenses?
2. An online calculator says the first £1000 profit is not taxed, as this is "trade allowance". Does that essentially mean the first £13,570 is tax free? The calculator seemed to suggest that the first £1000 of expenses doesn't affect the tax owed.
3. What do you theoretically save by claiming expenses? If I buy an item, do I save 20% (for example), or is the percentage lower/higher?
4. I think claiming for heating, electricity, Internet etc. is a bit beyond me for time being, and likely unnecessary for this year's self assessment return. However, how much do you claim for Internet? My self employed work and YouTube channel relies on my Internet connection. I'm thinking 80% business usage at around 50-60 hours a week, so could I theoretically claim 80% of the cost as an expense?
Apologies. I'm sure these are really basic, easy questions for many. It's somewhat confusing to someone who has spent the majority of their working life in PAYE. I just want to make sure I don't get stung with an unexpected bill, or lose out where everyone else saves. To think, we were forced to do "General Studies" at A Level and these lessons failed to cover any topics relating to personal finance ...
Thanks in advance! Really appreciate the help!
I'm self employed, but I also have a YouTube channel. I became self employed in October 2023. My YouTube channel was earning minimum amounts then, which fortunately has changed in the last 6 months. For the latest self assessment, which covers April 2023 to April 2024, I haven't made enough to exceed the £12,570K limit, so I'm not expecting to receive a tax bill. I do have some questions though ...
1. I bought an Apple MacBook Pro that is 100% used for my self employed work and YouTube channel. If I didn't reach the £12,570K amount, how do I claim expenses on the laptop? It was around £2K. Do I need to sell it, re-buy another for 2024/2025, and then claim it as expenses?
2. An online calculator says the first £1000 profit is not taxed, as this is "trade allowance". Does that essentially mean the first £13,570 is tax free? The calculator seemed to suggest that the first £1000 of expenses doesn't affect the tax owed.
3. What do you theoretically save by claiming expenses? If I buy an item, do I save 20% (for example), or is the percentage lower/higher?
4. I think claiming for heating, electricity, Internet etc. is a bit beyond me for time being, and likely unnecessary for this year's self assessment return. However, how much do you claim for Internet? My self employed work and YouTube channel relies on my Internet connection. I'm thinking 80% business usage at around 50-60 hours a week, so could I theoretically claim 80% of the cost as an expense?
Apologies. I'm sure these are really basic, easy questions for many. It's somewhat confusing to someone who has spent the majority of their working life in PAYE. I just want to make sure I don't get stung with an unexpected bill, or lose out where everyone else saves. To think, we were forced to do "General Studies" at A Level and these lessons failed to cover any topics relating to personal finance ...
Thanks in advance! Really appreciate the help!
Edited by Ikemi on Wednesday 18th December 16:40
TownIdiot said:
Do you have no other income at all?
No. I had a period of downtime between leaving my PAYE job and becoming freelance. I do expect a normal-sized tax bill next year, but starting out in October 2023, I didn't reach the £12.5K threshold by April 2024. No dependencies and no mortgage helps substantially! 
Ikemi said:
I'll try and keep this brief ...
I'm freelance, but I also have a YouTube channel. I became freelance in October 2023. My YouTube channel was earning minimum amounts then, which fortunately has changed in the last 6 months. For the latest self assessment, which covers April 2023 to April 2024, I haven't made enough to exceed the £12,570K limit, so I'm not expecting to receive a tax bill. I do have some questions though ...
1. I bought an Apple MacBook Pro that is 100% used for my freelance work and YouTube channel. If I didn't reach the £12,570K amount, how do I claim expenses on the laptop? It was around £2K. Do I need to sell it, re-buy another for 2024/2025, and then claim it as expenses?
2. An online calculator says the first £1000 profit is not taxed, as this is "trade allowance". Does that essentially mean the first £13,570 is tax free? The calculator seemed to suggest that the first £1000 of expenses doesn't affect the tax owed.
3. What do you theoretically save by claiming expenses? If I buy an item, do I save 20% (for example), or is the percentage lower/higher?
4. I think claiming for heating, electricity, Internet etc. is a bit beyond me for time being, and likely unnecessary for this year's self assessment return. However, how much do you claim for Internet? My freelance work and YouTube channel relies on my Internet connection. I'm thinking 80% business usage at around 50-60 hours a week, so could I theoretically claim 80% of the cost as an expense?
Apologies. I'm sure these are really basic, easy questions for many. It's somewhat confusing to someone who has spent the majority of their working life in PAYE. I just want to make sure I don't get stung with an unexpected bill, or lose out where everyone else saves. To think, we were forced to do "General Studies" at A Level and these lessons failed to cover any topics relating to personal finance ...
Thanks in advance! Really appreciate the help!
Why not get an accountant. It's the correct thing to do.I'm freelance, but I also have a YouTube channel. I became freelance in October 2023. My YouTube channel was earning minimum amounts then, which fortunately has changed in the last 6 months. For the latest self assessment, which covers April 2023 to April 2024, I haven't made enough to exceed the £12,570K limit, so I'm not expecting to receive a tax bill. I do have some questions though ...
1. I bought an Apple MacBook Pro that is 100% used for my freelance work and YouTube channel. If I didn't reach the £12,570K amount, how do I claim expenses on the laptop? It was around £2K. Do I need to sell it, re-buy another for 2024/2025, and then claim it as expenses?
2. An online calculator says the first £1000 profit is not taxed, as this is "trade allowance". Does that essentially mean the first £13,570 is tax free? The calculator seemed to suggest that the first £1000 of expenses doesn't affect the tax owed.
3. What do you theoretically save by claiming expenses? If I buy an item, do I save 20% (for example), or is the percentage lower/higher?
4. I think claiming for heating, electricity, Internet etc. is a bit beyond me for time being, and likely unnecessary for this year's self assessment return. However, how much do you claim for Internet? My freelance work and YouTube channel relies on my Internet connection. I'm thinking 80% business usage at around 50-60 hours a week, so could I theoretically claim 80% of the cost as an expense?
Apologies. I'm sure these are really basic, easy questions for many. It's somewhat confusing to someone who has spent the majority of their working life in PAYE. I just want to make sure I don't get stung with an unexpected bill, or lose out where everyone else saves. To think, we were forced to do "General Studies" at A Level and these lessons failed to cover any topics relating to personal finance ...
Thanks in advance! Really appreciate the help!
You say you are freelance. Is the freelance activity the same as your You Tube activity?
Eric Mc said:
Why not get an accountant. It's the correct thing to do.
You say you are freelance. Is the freelance activity the same as your You Tube activity?
Sorry, not freelance. I don't have multiple clients. I work remotely for a single company as a self employed individual. I have no outgoings or bills, other than the odd expense for a laptop, desktop computer etc. I was under the impression (might be wrong!) that I had to list all my earnings from my job, as well as YouTube, and that's it. Possibly a bit too simple for an accountant? Both activities require high powered computers and an Internet connection, although one activity requires camera, lights etc.You say you are freelance. Is the freelance activity the same as your You Tube activity?
Edited by Ikemi on Wednesday 18th December 16:42
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