Self Assessment - Made a Loss, Owe Tax ?
Discussion
Hi.
I've been filling in my first ever self assessment (online) for year 06/04/2016 to 05/04/2017.
I am in full time employment - PAYE, and not a very large wage.
In March 2017 I also set up as a sole trader (part time car sales).
Between setting up and the end of the tax year (05/04/2017) all I did was purchase trade insurance and trade number plates.
It wasn't until after the next tax year started that I purchased my first car to trade.
Which means in that time I made a loss, o expenses, of roughly £1,200.
However, when I got to the stage where I could submit my self assessment it says I owe them roughly £400 in tax!
Surely this can't be right..?
Any advice or suggestions on where I could have gone wrong would be greatly appreciated.
Thanks,
Martin.
I've been filling in my first ever self assessment (online) for year 06/04/2016 to 05/04/2017.
I am in full time employment - PAYE, and not a very large wage.
In March 2017 I also set up as a sole trader (part time car sales).
Between setting up and the end of the tax year (05/04/2017) all I did was purchase trade insurance and trade number plates.
It wasn't until after the next tax year started that I purchased my first car to trade.
Which means in that time I made a loss, o expenses, of roughly £1,200.
However, when I got to the stage where I could submit my self assessment it says I owe them roughly £400 in tax!
Surely this can't be right..?
Any advice or suggestions on where I could have gone wrong would be greatly appreciated.
Thanks,
Martin.
Hi.
Yes, I have my most recent P60 so got the figures from that.
Aah, but thanks for that as looking around that section again has, I think, led me to the issue.
In the 'Tips and other payments not on your P60' section, I've added my employer's pension contribution, which it seems I shouldn't have, as it is on my P60 (it was very late and I was quite tired filling it in last night).
It's now come out at the sum of my voluntary Class 2 NICs, so I think that's right.
Thanks!
Yes, I have my most recent P60 so got the figures from that.
Aah, but thanks for that as looking around that section again has, I think, led me to the issue.
In the 'Tips and other payments not on your P60' section, I've added my employer's pension contribution, which it seems I shouldn't have, as it is on my P60 (it was very late and I was quite tired filling it in last night).
It's now come out at the sum of my voluntary Class 2 NICs, so I think that's right.
Thanks!
Thanks for that Eric, much apreciated.
I'm sure you've already gathered, I'm no accountant, and haven't done anything like this before.
I'll have a look into some of the points you've pointed out when I get home tonight (I've not submitted the assessment yet).
One thing, though, I didn't actually buy stock in this period, it was purely setting up costs. I bought the first car for stock after the end of the tax year.
I am aiming to become fully self-employed at some stage (the future of my day job is a bit up in the air
at the moment) so I will want to pay voluntary Class 2 then, maybe I'm jumping the gun a bit here.
Thanks!
I'm sure you've already gathered, I'm no accountant, and haven't done anything like this before.
I'll have a look into some of the points you've pointed out when I get home tonight (I've not submitted the assessment yet).
One thing, though, I didn't actually buy stock in this period, it was purely setting up costs. I bought the first car for stock after the end of the tax year.
I am aiming to become fully self-employed at some stage (the future of my day job is a bit up in the air
at the moment) so I will want to pay voluntary Class 2 then, maybe I'm jumping the gun a bit here.
Thanks!
superlightr said:
perhaps you need to use/appoint an accountant.....
As things have since been moving along with stock coming and going, I think next year I will!I am finding it quite interesting, though, so I'm not regretting giving it a go this time.
Edited by Martin350 on Tuesday 17th October 13:07
I'm trying to fight the feeling that you're absolutely right! 
The thing with me is, as it's my own (very small) business I want to be aware of and understand everything that is happening with it as much as possible.
Partly because I find it interesting and partly because I feel I should know.
And thank you!
The thing with me is, as it's my own (very small) business I want to be aware of and understand everything that is happening with it as much as possible.
Partly because I find it interesting and partly because I feel I should know.
And thank you!
Yeah, I understand that.
I guess I naively thought that as I had virtually nothing going on in the last tax year it would be quite a simple process.
Of course, it isn't quite as simple as I'd hoped.
I thought lots of people do their own self assessments, so I thought (insert Clarkson voice) how hard can it be?
I wonder how many people doing it would be better off have an accountant do it..?
I guess I naively thought that as I had virtually nothing going on in the last tax year it would be quite a simple process.
Of course, it isn't quite as simple as I'd hoped.
I thought lots of people do their own self assessments, so I thought (insert Clarkson voice) how hard can it be?
I wonder how many people doing it would be better off have an accountant do it..?
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