The dreaded T-word!!!!! (Tax)

[monkeh]

Hiya

 

I'm just putting together my first self-employed tax return (not going quite as traumatically as I'd expected!!!) but I'm stumped on one detail, and I can't find the answer anywhere (I've googled it, looked on the self assessment website etc). Can anyone tell me what "annual turnover" is on the self assessment paperwork?

 

Cheers loads

 

S

[Dj Dunc]

From what I understand, it is the total amount of income per annum

 

dunc

[deranged-angel]

Hi Monkeh

It's the total amount that you brought in - not deducting anything from it for expenses etc. You are asked for your expenses in a later question and these will automatically be deducted for you.

 

Hope this helps

 

Em

x

[w/robe]

I'm just putting together my first self-employed tax return (not going quite as traumatically as I'd expected!!!)

 

Do it in April next time it is so much more relaxing. If you get it in to the Tax Office before September they will check it all for you which is useful if you don't have an accountant as if you accidentally underpay on your calculations you will be charged.

 

It has become a standing joke with my accountant as to how close to the beginning of April I can get all my paperwork to him.

[Bernie D]

I think it is the total of your invoices, and not the total of what you have taken. In other words you are taxed even if you haven't been paid yet.

[paulears]

Bernie D's on the ball here - it's the value of services or goods invoiced. If they haven't been paid, that doesn't count - they just get treated as debts. For most small businesses, like me - turnover looks big, it's just profit that is small!

[gareth]

Was going to post to point out that Bernie's right about the fact that turnover is the total amount invoiced during a financial year, not the total amount received - but Paul beat me to it!

 

I've said this before, and I'll say it again - if you're self-employed, find yourself a friendly accountant who can look after your books for you. As long as your accounting is quite simple their fees shouldn't be excessive ; and there's every possibility that by taking advantage of some of the lesser-known 'loopholes' and so on, they'll be able to save you more in tax than you've paid them in fees! When I first went freelance in the late 90s I engaged the services of the accountant who'd been doing the books for my dad's business for a long time, and he's been invaluable to me - even more so since I incorporated as a limited company three years ago.

[Nicktaylor]

Agree with Gareth. I am a sole trader with my hire business, along with my staff job. The accountant also fills out my tax form for me. His charges come off as a tax deductable expense from the current year as well. As I have already ben taxed at source on the staff job, if I am lucky I get a small rebate.

[w/robe]

I've said this before, and I'll say it again - if you're self-employed, find yourself a friendly accountant who can look after your books for you.

 

Only part of my income is freelance the rest coming from 2 PAYE jobs. I would not be without my accountant, having him there to phone about things that I think I know about but just want to check, as well as him dealing with my returns, is worth it.

[gareth]

I'm in a similar position to you, Mark - since June this year I've been back in the land of PAYE, but maintaining a small freelance income on the side. My accountant has been no less valuable to me in this new situation, as someone to answer questions about the best way to account for the two sources of income.

[deranged-angel]

When I first started Freelance, I was in a similar position and also had some PAYE work so I went to an accountant. I didn't like him or trust him for some reason - just one of those funny feelingas you sometimes get about a person- so I decided to do it myself.

It's really not that bad doing it yourself, of course this depends on how many jobs you have but I've found it okay and the staff at the inland Revenue aren't as scary as you might think.

 

One thing to point out - if you have done work in your tax year but didn't invoice until after that date the it goes on next years tax return. For example, my tax year is 5th april to 4th april. If I did a one day job on 4th april but only wrote out my invoice on 6th april, that would go on next years tax return. Get me? And, like the others have said, if I did invoice on 4th apiril but didnt get paid until a week later, it still goes on this year's.

 

Anyway, just make sure you go and meet an accountant first- you can always say no. I got the impression this guy wasn't going to help me out in any way and I could do it myself and save £130!

 

Cheers

Em

x

[lightsource]

Just a little note for those out there who are not farmiliar with the role of an accountant.

 

There are two types -

 

The first is a simple accountant / book keeper who looks after your accounts. Usually a self-employed accountant who charges a reasonable rate for their service. Inland Revenue may investigate accounts filed by this type of accountant as they see fit, simply because they are unregulated, and IR look at the accounts filed as if you had done them yourself.

 

Chartered Accountant, They charge a lot more, but Inland Revenue seem more willing to accept the figures they provide, because they are regulated by the industry, and audited. They may cost a little more, but my way of getting round this, is by doing most of the work for them, myself, so they charge less.