tax return

[Mookins]

am filling in the part on paper

turnover-blah blah
expenses- blah bah
profit-?
Loss-?

do i have to add the tax allowance to my expenses? to then take off my turnover? so i write in my loss

or do i write in my profit and they take off the allowance?
thanks all

xx

[cathtee]

Hi I do mine on line it's so much easier all you have to do is put in your income a total for expenses any interest off savings and that's it,k then it takes off your tax allowance calculates your NI and tells you there and then what tax you have to pay. It's a option to look at and have plenty of time to do it that way. Hope this helps

[Chatterbox Childcare]

I would say do it online - no mistakes can be made that way apart from you entering data. Also it tells you your tax liabilities immediately.

You put in your income and expenses and take one away from the other to give your profit

[Bridey]

You don't take your tax allowance off when you are filling in your turnover details - that bit comes later on in the form.

But I agree with the others - online is sooooooooo much easier

[Kiddleywinks]

Turnover less expenses will give you your profit or a loss

Your taxable allowance is then deducted against any profit to determine whether you have any profits left and thus any tax to pay

If you have made a loss= no tax
If you have made a profit of less than the taxable allowance = no tax to pay
If you have made a profit once the taxable allowance has been deducted = you pay 20p for each £1 profit

I also do it online as it calculates everything for me lol

Hope that helps

[hectors house]

If you do the paper version - you just fill in your Gross (total) income for year, on tax form may be called "Turnover", Total expenses which are all expenses + 10% of your total income (which is for wear and tear) - take the expenses away from the income and the figure is your profit or loss for year

EG Income 15,000 10% wear & tear 1,500
Expenses 6,000
Total expenses 7,500

Income 15,000
Total expenses - 7,500
net profit for year 7,500

the inland revenue deduct your amount of personal allowance and take into account any NI contributions paid and if any more are due.

The figures above are just an example - finished my accounts last night, wish I had earnt £15K !