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bigduckontax, Accountant
Category: Tax
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I became ill in March 2014 and went on SSP ( part time

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I became ill in March 2014 and went on SSP (for my part time job). I filled in my tax return for 2013/2014. I now need to fill out my 2014/2015 tax return. My SSP information is listed under my employer (2100.35) which I've entered. That then changed to ESA until 5/4/15 (£2517.11) but I'm not sure where this goes on the self assessment form? Also I received some commissions in April, May and June from sales I'd made in Jan to March 2014 (All other commissions in the year was from own use products). I also had some ongoing business expenses such as website costs/professional memberships (that I renewed in hope of getting back to work - but this hasn't worked out). My question is how do I show this in SA? Hope you can help
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. ESA goes in Box 12 and any tax deducted therefrom in Box 13. The April - June commissions technically go in the 15/16 tax return less the expenses. Conversely you could put them through the 14/15 return on a supplementary form SA103. I do hope my reply has been of assistance.
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Customer: replied 2 years ago.
Thank you. The commissions were during 2014/2015 . Sorry meant to also ask should I show business ceased on last expenses/commission date or 4th April 2015? and put this as additional note at end of Self Assessment form? I was switched to working tax credit from 6th April (don't think you can be on SSP and ESA more than a year?) which has really confused me too as it quotes income and hours of employment as they were in 2013/2014 tax return which is why I need to send in my 2014/2015 asap (they've just stopped my council rent/tax until I can prove income (which has only been benefits (SSP and ESA and now WTC with disability element)
Right, yes stick a note in in the box provided at the end of the return. Don't forget on your final self employment income to deduct any overlap relief you may be carrying forward from the tax system changes many years ago. Thank you for your support.
Customer: replied 2 years ago.
Thanks. ***** don't understand what overlap relief means?. My accounts are very simple. Income received, Expenses paid. I do know last year I had a loss that was higher than the income tax I'd paid (in my part time job) and I got a tax rebate of the same amount .
When the tax systems changed some years ago there was a possibility that you paid tax twice over certain dates. This double tax charge was known as overlap relief and could be recovered in the long term. For me it took quite a few years before I got it back! If you ran your accounts concurrent with tax years then you would not have any overlap.
The loss could be set against other income in the current year which appears to have happened and if it were a terminal loss unrelieved losses could be carried back three years.
Customer: replied 2 years ago.
Ah ok thank you for your help. Hope you don't mind but I'm also confused by them changing my ESA to WTC (never been on WTC before) - is that because I submitted my 2013/2014 accounts last year? I thought I'd been awarded ESA with the extra disability support element (no longer had to send in sick notes) until Feb 2017 when I'd be reassessed. But I got a P60U showing ESA paid to 4/5/2015 and working tax credit started a couple of weeks before that at around £36 per week. I then got a form through saying I should fill in Tax Credit renewal form - I wasn't sure whether I should be doing that so rang them and they said yes, took all details of SSP and ESA (contribution based) I'd received and knew I wasn't currently working. I then got a WTC award of £110 per week (which is similar to the ESA payment). Have read something today that makes me wonder now whether I should actually be receiving WTC at all as I'm NOT working, although technically still registered as self employed as I've not sent in last year's tax return yet with information to cease the business) . That's what I'm trying to do now. Would you advise that I need to talk to WTC - just worried if they stop it I have nothing coming in at all as Council have just suspended rent and council tax too until I can prove my income, which at the present moment is only the WTC. Beats me how they expect people to survive on £4,000 a year when everyone is supposed to be able to earn 10,000 before tax is paid.
You get WTC if you are working over 16 hours a week. it is in place of ESA. You should complete the tax credit renewal form to enable the TCO to compute an accurate assessment for tax credits. All awards by the TCO are interim until the end of the tax year when you declare you actual income to that office and then they finalise the position. Once you have the TCO's award you will be able to compute your income for Council Tax purposes.
You can find a good summary of tax credits here:
Customer: replied 2 years ago.
Great thanks have read through. I am NOT working any hours at present as still not fit to work (I have a PIP) and disability element to WTC and think I'm right in saying I am still eligible for WTC based on contrabution based ESA and SSP in the year previous. (phew!) I'm still confused as to how I go forward. I'm not sure whether to show I've ceased the business as of the end of the tax year 5/4/15 (although I didn't physically work in all that time at all, I did have a monthly commission from health product distribution company where my previous clients have continued to renew their products online - I then got a commission for that. I also had my website fees and professional membership fees. In all commission amounted to £1317.11 and expenses £381.94 leaving a profit of £935. Can I also deduct some of the losses made in 2013/14 from this profit? If so how? Do I do it before I put in the expense figure i.e. technically add it to the £391.94? To be clear the loss last year was £2798; I was refunded the £1404 I'd paid in my part time employment taxes so figure there is still £1394 to off set the £935 against? But lord knows how I show that? Easiest way for me would be to call 935 an expense and total earnings 0? and note it all in my accounts? How would you advise? Sorry to be such a nuisance but the more I go through this Self Assessment the more questions that araise. Would you also advise me to now close down the business as of 5/4/2015 or would that then affect my WTC again? Or am I allowed to keep it open and still just report on any commissions received, if any, (they are greatly reduced now to around £12 per month and of course no expenses now? I still keep hoping that one day I may feel fit enough to start something up again, even if it is retraining as a counsellor as I can't do physical therapies any more, in which case I'd want to restart business again. Many thanks for your replies.
You may not have physically worked, but the monthly commissions would be self employment income so theoretically you cannot close your self employment down until the final distribution is made.
Losses for earlier periods can be brought forward to offset profits or income in future years, but be careful not to allow your total income to drop below your personal allowance by the over utilisation of losses.
Customer: replied 2 years ago.
Thank you very much. My personal income is well below the personal allowance for last year and this year! :( Once again many thanks for your kind help

Then you can carry forward losses indefinitely.


Delighted to have been of assistance.