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.

UK Accounting Software that automatically generates the HM Revenue & Customs Self Employed Self Assessment Tax Return.

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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.

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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.

Tax allowances for vehicles and equipment (capital allowances)

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Inland revenue self assessment tax return Page 4

Page 4 of the self assessment return is optional and contains details of the assets and liabilities of the self employed business. Self employed business does not have to produce a balance sheet as part of its financial accounting and if one is produced the totals can be entered on Page 4. In addition small business that does not have a balance sheet can nevertheless entered a list of assets and liabilities in this section such as debtors, creditors, fixed assets and cash and bank balances.

Additional notes on the Self assessment Tax Return Form are contained in the tax articles of the article section:

Self Employment Registration And Self Assessment Tax Return

Self Assessment Tax Return Form And Capital Tax Allowances

Self Assessment Tax Return Income & Expenditure

Links direct from the HM Revenue & Customs website on Self Assessment

General information regarding self assessment tax return:

Self Assessment
Comprehensive information and assistance in all aspects of Self Assessment.

Self Assessment: Self Employed
Specific information about Self Assessment and how it might affect you when you start working for yourself.

Self Assessment Online
Filing your Tax Return online offers you automatic calculation of tax, immediate acknowledgement of receipt and faster repayment if you are owed money. You can also view your Liabilities and Payments online.

Self Assessment: Tax Return Forms, Notes and Help sheets
You are now able to complete and send back your current year's Tax Return over the Internet.

These pages provide comprehensive information and assistance in all aspects of Self Assessment from the HM Revenue & Customs Self Assessment Internet pages.

HM Revenue & Customs Quick Links

Key DatesTax Returns and Forms
Seven Easy Steps to completing and sending back your Tax Return
Frequently Asked Questions
Additional Information and Help


What's New / Hot Topics

Self Assessment: Attachments to online return: A new feature of the SA Online service will be launched 1 November 2006. This will enable customers to send attachments together with their SA Returns when they file online.

The 2005-06 Tax Returns, Notes and Help Sheets are now available: Further information on UITF 40 – Revenue Recognition and Service Contracts is now published. This is additional to Help Sheet IR238. More details can be found on HMCE Additional Information and Help page.

Self Assessment Online : Did you know that you can complete and send back your self assessment tax return over the Internet?

Self Assessment Online offers significant advantages over the traditional paper Self Assessment tax return.

  • It is secure, accurate and automatically calculates your tax
  • You get immediate acknowledgement and faster repayment if we owe you money
  • You can view your liabilities and payments in an online Statement of Account
  • You can choose to receive notices and reminders by secure email or text messages.
  • HM REVENUE & CUSTOMS Self Assessment Web Site

For specific information about Self Assessment and how it might affect you please choose the category below that best describes your situation. Choose a category:

Employee or Director
Self Employed
Partner
Employer
Agent/Tax Adviser
Partnership
Non-resident Company Landlords
Trustees of Self Administered Pension Schemes
Trustee or Personal Representative
The Short Tax Return