HM Revenue & Customs Self employed self assessment tax return

DIY accounting and payroll software limited company formation UK

UK ACCOUNTING SOFTWARE THAT AUTOMATICALLY GENERATES THE HM REVENUE & CUSTOMS SELF EMPLOYED SELF ASSESSMENT TAX RETURN

The following tables are the excel spreadsheet copies of the HM Revenue & Customs self assessment tax return that is integrated within all the self employed tax return systems provided by DIY Accounting to make it the best accounting software in the UK for the self employed.

Everyone who starts a business in the UK is required to register the new business with the inland revenue within three months of starting up that new business. There is a penalty fine of £100 if the new business is registered late. Having registered as self employed the Inland Revenue will send a tax return form each year which will include a supplementary section called self assessment tax return form. .The tax return form is usually received shortly after the end of the financial tax year and should be submitted by 30th September which is now changing to 31st October. By submitting the tax return by this first deadline date or online the inland revenue calculate the income tax and national insurance payable.

The final deadline date for submitting the inland revenue self assessment tax return is 31st January following the end of the tax year on 5 April. Income tax and national insurance due must also be paid by 31st January.

Why is this the best accounting software for the self employed. Compare accounting software? In that accounting software comparison how many produce small business tax software that will produce your HMCE, self employed self employed tax return. The answer will be not many if any at all which is why we believe this is the best accounting software for the self employed.

No entries are required to complete this inland revenue self assessment tax return which is completed automatically as part of the small business tax software providing a complete accounting software solution.

When the self employed accounts have been completed this inland revenue self assessment tax return is ready to be printed ready for you to go online and enter the accounts direct to the inland revenue website who will then automatically calculate your tax liabilities

Inland revenue SELF EMPLOYED self assessment tax return Page 1

The capital allowances section of the self assessment tax return form is the most difficult for people who are self employed and not conversant with at least a minimum knowledge of accounting and the tax system. Completing the self assessment tax return requires the self employed businessman to understand the tax system as applied to capital allowances that can be claimed against fixed assets.

While a potential difficult area for the non accountant capital allowances reduce the net tax payable. The difficulty in this section of the tax return form is that it is an area which many start up businesses may not have come across before. It is an area which affects not just the calculation of the tax allowances and knowledge of the tax rates but also how an item becomes considered for such tax allowances.

Also on page 1 of the supplementary self assessment pages are boxes to enter the sales turnover, total expenses and net taxable profit for small business with a sales turnover including the total of the capital allowances is under £15,000. If turnover is over this lower threshold then a more detailed analysis of income and expenditure is required on page 2.

SE1	Box references on this sheet are the same as HM Revenue & Customs self assessment tax return	SELF ASSESSMENT TAX RETURN
	Business details
	Name of Business		Description of Business
3.1		3.2

	Accounting period start		Accounting period end
3.4	06/04/07	3.5	05/04/08

	Capital Allowances - summary
		Capital Allowances		Balancing Charges
	Cars costing over £12,000	3.14	0	3.15	0
	Other Capital Allowances (incl. cars under £12,000)	3.16	0	3.17	0
	Agricultural / Buildings Allowance	3.18		3.19
	Other Capital Allowances	3.20		3.21
	Total Capital Allowances/balancing charges	3.22	0	3.23	0

	Income and expenses - annual turnover below £15,000

	Turnover					3.24	0

	Expenses allowable for tax including Capital Allowances					3.25	0

	Net profit (put in brackets if loss)					3.26	0

Inland revenue self assessment tax return Page 2

Accurate accounting records are required to complete the self assessment return with income and expenditure of different types being entered against specific box numbers in the income and expenditure section of the self assessment tax return form.

When turnover exceeds 15,000 pounds totals are required of the sales and business income and then deducted from that total the cost of sales which is split into three categories of expense. Cost of sales is the direct costs of purchases which are resold, these purchases usually being physical materials but should also include any services which are bought for resale.

The remaining and main body of the inland revenue self assessment tax return form concerns an analysis of the expenses. The majority of the expense categories are self explanatory in the title. Additional expense analysis other than the prescribed headings on the self assessment tax return is unnecessary for the vast majority of self employed business.

SE2	SELF ASSESSMENT TAX RETURN PAGE 2
	Income and expenses - annual turnover over £15,000

	Do the figures include VAT?	3.27		or exclude VAT?		3.28	X
			Sales turnover			3.29
			Disallowed Expenses		Total Expenses
	Cost of sales	3.30		3.46
	Construction sub contractor costs	3.31		3.47
	Other direct costs	3.32		3.48
			Gross profit (loss)			3.49
			Other Income/profits			3.50
	Employee costs	3.33		3.51
	Premises costs	3.34		3.52
	Repairs	3.35		3.53
	General Administrative expenses	3.36		3.54
	Motor expenses	3.37