Tax Returns! Argh!

[Chappers]

I am self employed and every year I have to battle through my tax returns, it's not that it's particularily hard but the way they word everything sends me to sleep!

I was wondering if you guys might be able to help me on a few points?

Part 3.24A asks me to input (i'm doing it online by the way) my turnover, including goods etc for personal use. Now what I'd like to know is does that mean "how much money has your business had go in and out?"

Secondly, part 3.25A wants expenses allowable for tax, that's like fuel bills and work related expenses yes?

I'd love it if you guys might give me a hand with this.

[Banjoman]

I honestly believe you will be better off financially paying an accountant to submit your accounts.
Its not so much how much income tax you pay, its much more about claiming all the allowances which cut your tax bill.
The real difficult part is finding the right accountant. I would not reccomend you going to a "large" accountancy company at this stage. (Not that there is anything wrong with them!) I was fortunate in finding an individual who was just starting his own business over twenty years ago and I am still with him. Ask around your friends who they can reccomend. (If you are in the sussex area I can put you in touch with mine) Good luck

[kags]

The section you refer to can only be completed if your turnover is less than �15,000. Your turnover is the total money received by your business, before deduction any outgoings.

Have you drawn up some basic accounts for the business, ie a total of your income and expenses? If you haven't done this, you are not ready to complete the tax return.

The tax return has accompanying notes which will give you some guidance as to what is allowable for tax, and these notes are also on the Customs and Revenue website.

http://www.hmrc.gov.uk/helpsheets/ir222.pdf

Do you understand how you pay your tax, and make payments on account for the current tax year? If you don't, I would suggest you do take some professional advice.

[Chappers]

Thanks very much, that's all I needed to know, sorted now.