Tax return due, some advice please

[armyash]

Hi

Got a letter through from HMRC today saying I need to complete a tax return for April 2013 - April 2014. I have until October 31st for paper copy or jan 31st if doing online. Plenty of time.

I wanted to get some advice as I have never done one before, most lads I know who work on a self employed basis reckon they always get a minimum of £1500 back. (I don't understand how but wont be getting my hopes up lol)

Who does theirs themselves?

Who gets an accountant to do it for them?

What I have been advised is, take all my receipts etc to an accountant and let them deal with it as what they can save/claim for on my behalf makes it worth while as they will pretty much save me their fee.

I think that means they will claim for me the maximum allowances possible on what ever I can claim against.

Hope this makes sense, if anyone can shed some light that would be great, thanks.

 

[Leo21]

Are you sellf employed and pay tax at source?

 

[PlumbersMate]

Hi

Got a letter through from HMRC today saying I need to complete a tax return for April 2013 - April 2014. I have until October 31st for paper copy or jan 31st if doing online. Plenty of time.

I wanted to get some advice as I have never done one before, most lads I know who work on a self employed basis reckon they always get a minimum of £1500 back. (I don't understand how but wont be getting my hopes up lol)

Who does theirs themselves?

Who gets an accountant to do it for them?

What I have been advised is, take all my receipts etc to an accountant and let them deal with it as what they can save/claim for on my behalf makes it worth while as they will pretty much save me their fee.

I think that means they will claim for me the maximum allowances possible on what ever I can claim against.

Hope this makes sense, if anyone can shed some light that would be great, thanks.

Have always used an accountant and always get about 3k back after his fees. My mate done his own one year and got 7k back but had them knocking on his door lol

 

[AWheating]

if you get paid via cis you will have paid 20% on the first £9440 (amount allowed before you pay tax) so 9440 x 0.2 = 1,889 aprox

so you will automaticaly in theroy this will come back, before any other expenses, allowances, costs etc......

it will be more if its your first year and you paid 30% at the start before your utr number was issued.

 

[cr0ft]

Never bothered with an accountant myself. My view is that you can read up on what you can and cannot claim for and book-keeping software which makes the end of year returns a straightforward affair. That saves a few hundred pounds straight away, well worth a day off work to complete it.

Anything that I can do myself that is charged at a higher rate than I can charge I do myself.

 

[mfgs]

I always work out all my own figures and get an accountant mate to do the return online for me.

 

[Leo21]

I practice what I preach and get a professional in. You simply can't know the wrangles that a good accountant can.

 

[REDSAW]

£600 back for working from home.
the garage as a workshop if you 'make or repair' in it etc.
theres a few things if you have access to an accountant.

 

[armyash]

Are you sellf employed and pay tax at source?

Yes self employed but working for a firm. They sort the tax but I do the NI which I paid for the year a week ago.

Thanks for all the replies mixed responses is always good. I think I'll use an accountant this year as it's my first one, hopefully next year I'll be able to afford to spare the time and do it all myself. My brain is fried with all this plumbing malarkey!

 

[REDSAW]

Yes self employed but working for a firm. They sort the tax but I do the NI which I paid for the year a week ago.

Thanks for all the replies mixed responses is always good. I think I'll use an accountant this year as it's my first one, hopefully next year I'll be able to afford to spare the time and do it all myself. My brain is fried with all this plumbing malarkey!

might get into trouble doing that!!

 

[Leo21]

Yes self employed but working for a firm. They sort the tax but I do the NI which I paid for the year a week ago.

Thanks for all the replies mixed responses is always good. I think I'll use an accountant this year as it's my first one, hopefully next year I'll be able to afford to spare the time and do it all myself. My brain is fried with all this plumbing malarkey!

A word of caution, ask for recommendations. A bad accountant can cost you money.

 

[lame plumber]

pay my accountant £350 for doing my returns, after Ive done all the legwork, ie expenses,income summary etc. Then he does some capital allowances etc and gets me more allowances than I can find and the Mrs is put on the books to use her allowances and last years tax bill came to £3.40. Got to pay bit more this year as did to well! My main aim is to sit below the vat limit as life is simpler that way

 

[Killy Bing]

might get into trouble doing that!!

Not if he is cis surely.

 

[anz]

Not if he is cis surely.

Think he means having a separate gas safe and competing with his employer.

There is nothing wrong with being self employed and employed at the same time.

 

[village idiot]

Hi
I wanted to get some advice as I have never done one before, most lads I know who work on a self employed basis reckon they always get a minimum of £1500 back. (I don't understand how but wont be getting my hopes up lol)

The tax man will only give you back money that you have already given to him. You can not be ''rewarded'' if you have not contributed into the pot. If after submitting your accounts, it becomes obvious that you are ''owed money'' by the revenue (and let's assume it's your first year of trading), this owed amount will be carried forward and set against any future taxes you have to pay. Even if it's your 10th year of trading, the revenue will only pay you back if their records show that tax they have collected from you in the past exceeds what you are owed.

For a simple example, let us assume that you have been trading for 5yrs and over that period of time, you have paid tax of £1,500. If on the 6th year, after submitting your tax, you incur a net loss of £1,700. The revenue will only pay you £1,500. The balance £200 will be carried forwards and offset against future tax payments. Should you make a loss in year 7, this will just be added to the earlier £200 and again carried forward etc.

In effect, do not just assume you will get £1,500 from the tax man because your friends said they got one