HELP! Tax Return Advice please

[cbshoat]

I registered for self assessment in December 2012 in preparation for my registration being completed but unfortunately this was delayed. Eventually I managed to complete registration and started working (actually had children) 15th April 2013 and went online to notify HMRC that I would be self employed as of that date as I was aware that self assessment and self employed notification are not the same thing. However, today I have received notice to complete self assessment return for 2012-2013. I phoned them up to tell them I wasnt working until 15th April 2013 and they said I still need t complete it anyway. Here's my problem; I have been completing my accounts as I go and was advised to put all my start up costs in my expenses during my first month of trading. The thing is some of these start up costs date back to Octoer 2012 so do I need to redo all my accounts and put my start up costs on this tax return or can I simply state no income/no expenses for last year and keep start up costs where they are?????

Really sorry to be a nightmare but re-phoned HMRC twice and have given up both times after being on hold for 15+mins!!!!!

Thank you in advance

[christine e]

Hopefully Mr A will be along shortly and give you the answer

[Chatterbox Childcare]

If you didn't become self employed until 15th April I would keep your accounts as they are and put in a nil tax return BUT to get a self assessment I am presuming you told them prior to 5th April 2013 that you were self employed so maybe put nil in under income and your start up under expenses

Next financial year you would use the loss from 12/13 against your profit

I think it all depends on when you registered and was it for self employment or employment of some kind that you finished?

[sing-low]

I'm wondering about this too. Just about to start minding so no income as yet but lots of expenses.

[Rick]

I'm wondering about this too. Just about to start minding so no income as yet but lots of expenses.

You only need to inform HMRC you intend to start a self employed business just before you start minding children. Any expenses incurred before this, first aid course etc, will count as start up costs and entered on your first month accounts. Unless you have informed HMRC before 6th April that you are self employed, you won't need to do a tax return for the year 2012-2013 as you haven't started trading.

[dtaylor0710]

Hi you are fine to put your start up costs in with next years tax return and just file a nil 2012/13 return to avoid any fines.

[Rick]

Hi you are fine to put your start up costs in with next years tax return and just file a nil 2012/13 return to avoid any fines.

You are required to inform HMRC that you are a self employed business before you take on children (just before is fine). It all depends on when you did this.

If you informed them before 5th April 2012 then you have to submit a tax return form for 2012/13. If it is all expenses then you still have to do one and you will have made a loss in the first year (you can input this loss onto next years form so your profit shows less next year and you pay less tax)

If you informed HMRC after 5th April 2012 then you don't submit a form for 2012/13. All expenses up to you informing HMRC are start up costs and you input these into your 2013/14 tax return form.

[Chatterbox Childcare]

Bear in mind that if you have been employed and paid tax it is in your interest to put in a tax return as you may be entitled to a refund of monies already paid. If you do this then put in your expenses in the self employed section too and then carry the loss forward to the next year.

[Rick]

Bear in mind that if you have been employed and paid tax it is in your interest to put in a tax return as you may be entitled to a refund of monies already paid. If you do this then put in your expenses in the self employed section too and then carry the loss forward to the next year.

I finished my previous job in Aug '11 and started CMing in Oct '12. I personally just sent a letter asking them if I was eligible for a refund as I had paid income tax in my previous job assuming I would be there all tax year. Got a nice £700ish rebate which went straight on my new business!