Self employed question

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Self employed question

Postby kevtherev » 06 Jan 2018, 17:56

So I'm self employed.
My tax is stopped at source at 20% (CTS)

I have a spreadsheet of my invoices for income
And one for costs.
Lots of ordered receipts and invoices, other income mileage etc
I have my Gov gateway registration and log in

I'm told the 31st Jan is the last day for tax return.

I need to know the process as it's my first time.
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Self employed question

Postby clift_d » 06 Jan 2018, 18:24

Self assessment Is pretty straightforward once you've done the work to bring together your total income / expenses. Just log in to the Self Assessment website and it will guide you through the process step by step. If you stop halfway through then everything you've done so far is saved until you log in again, and HMRC don't pay any attention to what you're doing as you fill it in - it's only when you finally submit your return that they hold you to what you've entered. Any questions just give them a ring - in my experience they're pretty helpful.
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Re: Self employed question

Postby colinthefox » 06 Jan 2018, 18:37

I am self-employed, and was reluctant to change to online, but I found it straightforward.
You can stop and save the forms at any time, then carry on another time.
The forms do have a box for tax deducted at source, so should cope with that OK.
It is advisable not to do it at the last moment though, because towards the end of January things get a bit hectic, and you might wait a while for an answer on the helpline. Also if anything goes wrong with your registration, it may take a few days to sort out.
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Re: Self employed question

Postby irishkeet » 06 Jan 2018, 21:08

I always pop the end of jan payment in about a week before as it can take a couple of days to clear. I use an accountant, as a sole trader the fees are not a lot and his knowledge in what I can save or put through covers his annual fee

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Re: Self employed question

Postby kevtherev » 07 Jan 2018, 08:07

Thanks all.

I travel to sites, and stay in the area for a few days
.
Is travelling to the sites considered a commute?

Or can I include the mileage to the site as an expense?
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Re: Self employed question

Postby irishkeet » 07 Jan 2018, 08:16

kevtherev wrote:Thanks all.

I travel to sites, and stay in the area for a few days
.
Is travelling to the sites considered a commute?

Or can I include the mileage to the site as an expense?


I would say mileage is an expense, I also travel to sites. Acc said I can either put in the wear & tear (MOT service, tyres etc) each year or the mileage, whichever is best for me, as I do about 15,000 a year I put in mileage. I also need to put a % of this as the car is personal use too so I put in 90% of the mileage work - 10% personal.
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Re: Self employed question

Postby kevtherev » 07 Jan 2018, 12:02

irishkeet wrote:
kevtherev wrote:Thanks all.

I travel to sites, and stay in the area for a few days
.
Is travelling to the sites considered a commute?

Or can I include the mileage to the site as an expense?


I would say mileage is an expense, I also travel to sites. Acc said I can either put in the wear & tear (MOT service, tyres etc) each year or the mileage, whichever is best for me, as I do about 15,000 a year I put in mileage. I also need to put a % of this as the car is personal use too so I put in 90% of the mileage work - 10% personal.

That's interesting Keet.
I use the camper to stay at sites.
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Re: Self employed question

Postby itchyfeet » 07 Jan 2018, 12:36

Many years ago when I was self employed you were not allowed to work predominately for one company.
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Re: Self employed question

Postby davidoft1 » 07 Jan 2018, 12:56

Filling the form in is pretty straightforward, make sure you sight up now as you need a password and user name which can take a week to come through.
You only have to fill in profit and loss basically, the rest is just questioning about other forms of income you may have that you haven’t declared, be prepared to answer the same question in a different way several times.
Mileage is deductible but not all of it, as above you have private use of you don’t have a specific work vehicle which is generally 25%. Commuting to and from the same place of work is not deductible, other travel is.
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Re: Self employed question

Postby kentishvanman » 07 Jan 2018, 15:17

Hi Kevin,
Do not understand. Obviously do not know your details.
You are self employed but tax is stopped????? I paid mine once a year for over 40 years.
If someone is 'dictating' where you work ie tells you what site to go to I would query with HMRC your tax status.
Self employed means you decide where and when you work. You get all the money for the job. Deduct all your expenses and get taxed on what's left. No sick/holiday pay. No firms pension. That is what it used to be. Perhaps it's changed. Employed is an easier life but if like me you can't work for others and don't mind longer hours then the freedom is worth it.
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Re: Self employed question

Postby irishkeet » 07 Jan 2018, 15:49

kentishvanman wrote:Hi Kevin,
Do not understand. Obviously do not know your details.
You are self employed but tax is stopped????? I paid mine once a year for over 40 years.
If someone is 'dictating' where you work ie tells you what site to go to I would query with HMRC your tax status.
Self employed means you decide where and when you work. You get all the money for the job. Deduct all your expenses and get taxed on what's left. No sick/holiday pay. No firms pension. That is what it used to be. Perhaps it's changed. Employed is an easier life but if like me you can't work for others and don't mind longer hours then the freedom is worth it.
Don



Same for me Don :mrgreen:
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Re: Self employed question

Postby Ant-t » 07 Jan 2018, 15:51

itchyfeet wrote:Many years ago when I was self employed you were not allowed to work predominately for one company.


That's still the case and recently the IR35 allowances have been tightened up, I believe that govt and large businesses now have to declare who the self employed contractors are to the revenue. If you work for one firm Mon to Fri at 37.5 hrs a week the revenue probably won't think your self employed, if you do have at least one other employment and invoices for hours worked you may be okay.
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Re: Self employed question

Postby kevtherev » 07 Jan 2018, 16:07

kentishvanman wrote:Hi Kevin,
Do not understand. Obviously do not know your details.
You are self employed but tax is stopped????? I paid mine once a year for over 40 years.
If someone is 'dictating' where you work ie tells you what site to go to I would query with HMRC your tax status.
Self employed means you decide where and when you work. You get all the money for the job. Deduct all your expenses and get taxed on what's left. No sick/holiday pay. No firms pension. That is what it used to be. Perhaps it's changed. Employed is an easier life but if like me you can't work for others and don't mind longer hours then the freedom is worth it.
Don

Yes you can do that but there is a choice.
I have asked my tax deducted at source at 20% of gross
It's called CTS. And uses a unique tax code (UTC)
It means I don't have to think about saving it for the end of year.
As the work is part time, and I decide when to work, there's a temptation to dip into it.
This way it's paid when the company settles the invoice for the month.
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Re: Self employed question

Postby kevtherev » 07 Jan 2018, 16:09

Ant-t wrote:
itchyfeet wrote:Many years ago when I was self employed you were not allowed to work predominately for one company.


That's still the case and recently the IR35 allowances have been tightened up, I believe that govt and large businesses now have to declare who the self employed contractors are to the revenue. If you work for one firm Mon to Fri at 37.5 hrs a week the revenue probably won't think your self employed, if you do have at least one other employment and invoices for hours worked you may be okay.

Yes this is the case for me
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Re: Self employed question

Postby kentishvanman » 07 Jan 2018, 17:13

Kev,
Sounds as though you have it all sorted. Good.
I always found the tax man was very helpful if you approached them in the right manner ie open and up front. If they thought you was trying to pull the wool over their eyes then....beware.
I once got 'caught 'by a dodgy accountant (you would be surprised how many there are) and the revenue delayed collection by quite some time with no penalties etc
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