Have Tax Questions? Ask a Tax Expert for Answers ASAP
As a sole trader you need to register for Self Assessment. You should register as soon as you can after starting your business. At the latest, you should register by 5 October in your business’s second tax year.
ell HM Revenue and Customs (HMRC) you want to be a sole trader by registering as a new business. You’ll register for Self Assessment tax returns and Class 2 National Insurance at the same time.
You’ll then be able to report your self-employment income through a tax return after the end of each tax year.
I would not think that you could benefit from activating it.
An excel sheet would be useful. If you are using your own vehicle, you can claim allowable business expenses for:
They may be. As long as it is a required expense to run your business activity.
Here is a short list
The cost needs to be directly required to earn the income.
You will report the expenses and they are deducted from your total received.
The spread sheet is fine but you should retain any receipts that prove your amounts too.
You don’t need to send your records in when you submit your tax return but you need to keep them so you can:
You must keep your records for at least 5 years after the 31 January submission deadline of the relevant tax year.
Midnight 31 January 2017 if you file Online.
You need to register by the October date.
You could use the simplified expenses and use mileage. Keep a log of the actual miles.
I sincerely ***** ***** has been useful.
If you rate in a positive way (look for the STARS or SMILEY FACES) I am credited with responding. It adds nothing to your costs but it assists me.
Most small businesses with an income of £83,000 or less can use cash basisreporting.
With this method, you only record income or expenses when you receive money or pay a bill. This means you won’t need to pay Income Tax on money you haven’t yet received in your accounting period.
EXAMPLE: You invoiced someone on 15 March 2016 but didn’t receive the money until 30 April 2016. Record this income for the 2016 to 2017 tax year.
If you used the traditional method you pay tax in the year invoiced even if you did not receive the payment util the next year (After the tax year closed in April).
Yes, I was typing.
You have to receive your payments in the year you want to pay tax. You cannot spread it to another year out side the accounting rules.
Pay would need to be after April if you wanted it in 2016-2017 year. That goes for both.
If all paid in same year then yes if you are not using traditional.
If you use traditional accounting then you use the invoice dates. You can see 2 years then and spread.
It comes down to your accounting.
You are most welcome.