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SELF EMPLOYED? How does a self assessment tax return work in the UK?

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  • čas přidán 14. 08. 2024
  • It’s that time of year again! Let’s take a look at a UK Self Assessment tax return. This is for the 2022/23 tax year, due Jan 2024 but it's very similar from year to year. Here's some other videos that you might find useful if you're self employed:
    What is cash basis? • What is CASH BASIS acc...
    What is turnover? • What is TURNOVER? Self...
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    #smallbusiness #selfemployed #tax

Komentáře • 81

  • @SmallBusinessToolbox
    @SmallBusinessToolbox  Před 7 měsíci +2

    Has this video been useful? Join the Small Business Toolbox website for access to loads of downloads and templates for your business: smallbusinesstoolbox.uk/all-downloads/ There's also loads of FREE articles to help you on your small business journey.👍

  • @gazgough9264
    @gazgough9264 Před 9 měsíci +26

    Honestly why nothing like this is taught in school is just beyond me! As always informative and helpful video👍

    • @SmallBusinessToolbox
      @SmallBusinessToolbox  Před 9 měsíci

      Cheers and no worries!

    • @PlanetImo
      @PlanetImo Před 9 měsíci +4

      Absolutely. I graduated from uni not knowing you even had to declare your income!! All my classmates were in the same boat.

    • @guillaumemaurice3503
      @guillaumemaurice3503 Před 9 měsíci

      I totally agree with you.

    • @alastairhopkins245
      @alastairhopkins245 Před 6 měsíci

      I remember doing a course called "Steps Into Work". There was nothing in that course about self employment.

    • @user-mj4xp7wi3p
      @user-mj4xp7wi3p Před 6 měsíci +2

      Its because schools work hand in hand with banks, the main aim is to get you into debt and striff as soon as possible. If we all left school financialy wise there would be little loan debt in existance

  • @Xofttam
    @Xofttam Před 9 měsíci +6

    I finished my 4th tax return about 2 weeks ago. I used your videos back when I started and they helped me to no end! I spend about 45 mins each day keeping good records of purchases and sales and thing so when it came to the tax return it was a breeze.

    • @SmallBusinessToolbox
      @SmallBusinessToolbox  Před 7 měsíci

      Fantastic stuff - thank you! Still get an accountant to check things over now and then - they're generally invaluable. 👍😁

  • @guillaumemaurice3503
    @guillaumemaurice3503 Před 9 měsíci +3

    Thank you for the video that was very helpful. I have been self-employed for 2 years now but, I do the tax form myself as I cannot afford an accountant at this time. I did the online form recently (2022/23 tax year) but have yet to submit it as there were some confusing questions to answer; just need to double-check before I do anything else. Great video.

    • @SmallBusinessToolbox
      @SmallBusinessToolbox  Před 7 měsíci +1

      No worries! I've always found an accountant saves me more than they cost so worth having a chat with one. Most are fine with you doing the donkey work yourself if things are relatively simple. 👍

    • @Sherry78
      @Sherry78 Před 7 měsíci

      Does this not depend on how much money you make though? Some people take in under £20k@@SmallBusinessToolbox

  • @SHINBAXTER
    @SHINBAXTER Před 6 měsíci +1

    THANKS AGAIN FOR ANOTHER YEAR DUDE. YOU GOT A NEW SUB👍
    =)

  • @AdamBilliald
    @AdamBilliald Před 9 měsíci +2

    Thanks for another great upload ✨️

  • @rubywhite312
    @rubywhite312 Před 8 měsíci +1

    Great video, thank you very much for your help! ❤

  • @raygrimes9203
    @raygrimes9203 Před 6 měsíci

    Just about to do my first as a sole trader. This video has taken some of the apprehension away!

  • @hasisul
    @hasisul Před 4 měsíci

    this time really worked. thank you!

  • @mpsw7
    @mpsw7 Před 6 měsíci

    Thank you so much, I really appreciate your help😊

  • @stevenruddick9934
    @stevenruddick9934 Před 3 měsíci

    I am confused, is that final figure at the end the amount of money you will get back from your tax return or how much they expect you to pay? I work self employed and my tax is paid for me however I was under assumption I received money back at the end of the tax year? Is that due to overpaid tax?

  • @georgef822
    @georgef822 Před 9 měsíci +2

    Hi, I'm a self-employed full-time e-commerce seller. All my earnings go straight into my personal bank account. It is best to keep it this way or operate under a limited company. I'm nowhere near the VAT threshold by the way as well.
    Anything going in to the limited company will come straight to me anyway as it's my main source of income.
    Thanks.

    • @SmallBusinessToolbox
      @SmallBusinessToolbox  Před 9 měsíci +3

      Have a look at my vid about pros and cons of going limited. If nothing else I would set up a separate business bank account, even as a sole trader, otherwise it's a nightmare if you get audited. 👍

    • @andrewnearyaccountants1621
      @andrewnearyaccountants1621 Před 9 měsíci +1

      I would say open a seperate bank account......legally it doesnt have to be a business bank account(WHY PAY BANK CHARGES) unless its a limited company and put all your business ins and outs from the seperate bank account

  • @carolinesimmill4962
    @carolinesimmill4962 Před 7 měsíci

    Thank you, very helpful.

  • @stephyclaws
    @stephyclaws Před 6 měsíci

    Does anyone have any idea where to declare the £500 self isolation payment? I am both self employed and an employee. I have no idea if it needs to be declared but I am guessing yes because it wasn't taxed... just landed in my bank.

  • @Azza._.
    @Azza._. Před 4 měsíci

    What if you don’t actually have a business and your self employed still what would I put

  • @sadafahmed9563
    @sadafahmed9563 Před 4 měsíci

    Can you pay the tax owed all at once - the £4765.55 rather then 1st payment 2nd payment? So you don't have ot bother for the whole year it's all done and dusted?
    Also how do you pay it - do they deduct via your bank account or buy your debit card??

  • @Tjomi4007
    @Tjomi4007 Před 4 měsíci

    Can you show again but whith over 50K how and what need tick in pages? Thanks

  • @Bongwi88
    @Bongwi88 Před 7 měsíci

    Thank you Mr. Man, it sounds close to easy.

    • @SmallBusinessToolbox
      @SmallBusinessToolbox  Před 7 měsíci

      No worries! But do get an accountant to sanity check for your own situation. 👍

  • @andrewnearyaccountants1621
    @andrewnearyaccountants1621 Před 9 měsíci

    As an accountant.......if the tax payer completes his own return then they will self populate the employment figures automatically........if you have an accountant then they dont so you will still need to get P60's / P45s for your accountant

  • @patrickodonnell9669
    @patrickodonnell9669 Před 4 měsíci

    I have been saying this for years this should be made mandatory in the curriculum for all schools we have been neglected for far to long by the education system get this sorted now people should have a vote on this and have it herd in parliament

  • @stevejohnson48
    @stevejohnson48 Před 4 měsíci

    If self employed does the personal allowance get taken off automatically ?thanks

  • @agee7777
    @agee7777 Před 4 měsíci

    Why does the return say that you owe money once completed?

  • @campcop9214
    @campcop9214 Před 6 měsíci

    Confused a lirtle about some of the expenses that apply to most. Like working from home allowance, how is this calculated? Same for say internet expense, how do you calculate that? 50% business, 50% personal? So claim for half or what.
    Other than the obvious stuff like packing supplies,, mileage what else is claimable?

    • @user-mj4xp7wi3p
      @user-mj4xp7wi3p Před 6 měsíci

      Just half your internet bill for 50%, reg working from home im not sure if they do it by Sq foot but work out the Sq foot of your house, then the sq foor of your working area then allow for the rent, mortgage and heating, electricity, by dividing bills by your sq foot then times it by your work space. Work out how much it is an hour to be at work. You can effectively do that with the internet to and any other bill

  • @user-ff4kf2ss2k
    @user-ff4kf2ss2k Před 4 měsíci

    Great video. I make and sell racing simulator components mainly,but if I use the same tools and materials to make say homeware products, furniture etc.. do these class as a separate business and I have to tick the little box and add them separately. I can’t seem to find out what classes as a separate enterprise or as I am a creative can I always mash everything together providing I am not a construction worker or a doctor or something specialised? I am really a designer and maker and make all types of things in my workshop. Thanks Leon

    • @SmallBusinessToolbox
      @SmallBusinessToolbox  Před 4 měsíci

      I think you could get away with either if you call yourself a Designer rather than a 'maker of racing simulator components'. It shouldn't impact your final tax situation but as the business grows it would be worth double checking with an accountant.

  • @user-mj4xp7wi3p
    @user-mj4xp7wi3p Před 6 měsíci

    Ive tried to do 3 years of self assesment but there seems to be no way on hmrc.

  • @muhammadiqbal1746
    @muhammadiqbal1746 Před 7 měsíci

    Hello, question here. I am a contractor in IT but using umbrella co for payroll so no need for self assessment however, I have some shares in ISA and general investment shares so do I need to disclose them. They are very low so quite a lot lost. Thanks for your help.

    • @SmallBusinessToolbox
      @SmallBusinessToolbox  Před 7 měsíci

      I'm not an accountant BUT the ISA doesn't need disclosed as that's tax free. General investment shares - you should really be declaring any dividends BUT if it's quite low you're probably not exceeding your dividend allowance so I wouldn't worry. If you sell general shares at a profit you may need to declare capital gains if they're outside an ISA. That's my understanding anyway! 👍

  • @HoodGoliath-hs6gp
    @HoodGoliath-hs6gp Před 6 měsíci

    I’m working for an agency I don’t won’t a bussines on the bussines name should I put my personal name or the Name of the agency that I’m working for as a self employed?

  • @JuliusJanonis-fw1zl
    @JuliusJanonis-fw1zl Před 6 měsíci

    How does payment on account works ? I paid twice amount of my calculated tax for the last three years. And never get discounted it from next year's tax amount or refunded by HMRC. How is this work? Thanks for great videos.

    • @j700jam4
      @j700jam4 Před 6 měsíci

      I am the same, I seem to have huge bills and the payments on account from the previous years are never shown to come off in the calculation

  • @user-is7je7jn5t
    @user-is7je7jn5t Před 7 měsíci

    hello, thanks for the video, very useful.. i have a question. i am selfemployer working for 2 or 3 agencies, the businnes are not mine, i just worked for each one of them for few hours a week. when it asked me how many busines did you own.... should i put 3 if i worked for each one of them and add the incomes and expenses for eachone in each tab... thanks for the clarification

    • @SmallBusinessToolbox
      @SmallBusinessToolbox  Před 7 měsíci

      You should probably have a quick chat with an accountant to double check. On the surface it sounds like you have one self employed business doing work for 3 agencies. So that would only need one self employment section. Unless the work you're doing for each is radically different.

  • @Sofura.academy
    @Sofura.academy Před 7 měsíci

    I have a full-time job ( I worked for 3 different companies) and a self-employed (fast food delivery) job. What is approach in this case. How do I find that how much tax is deducted from my salary? Any help appreciated.

    • @SmallBusinessToolbox
      @SmallBusinessToolbox  Před 7 měsíci +2

      Add an employment section for each job, add details from your P60. Add a self employment section for each business and enter your figures. It should then calculate tax automatically. Get an accountant to help, at least with your first couple of returns. 👍

  • @samjones6448
    @samjones6448 Před 9 měsíci

    Hi, i'm just starting a woodwork buisness and so far only have expenses, materials and a few tools, i may make a couple of sales before the 31st but not £1000 worth. Can i claim the tax back? Its all a little confusing. Appreciate any answers

    • @SmallBusinessToolbox
      @SmallBusinessToolbox  Před 9 měsíci

      Generally speaking you can only claim back tax you've actually paid, so if you haven't paid any tax there's nothing to claim back. You could potentially carry forward losses to the next tax year though and off-set those against future profits - bear in mind the tax year ends 5th April, not 31st Jan. 31st Jan is the tax return deadline for the tax year ending 5th April 2023. If you only recently started trading you shouldn't need to submit a tax return until 31st Jan 2025 (don't leave it that late though!). Get an accountant to help, at least with your first couple of returns. Best of luck! 👍

  • @mugstore99
    @mugstore99 Před 7 měsíci

    *I started doing selling product(POD) on ETSY in Feb 2023. I don't have to do those assessment right?*

    • @SmallBusinessToolbox
      @SmallBusinessToolbox  Před 7 měsíci

      Potentially. If you made more than your £1000 trading allowance between Feb-April 2023. Might be worth having a chat with an accountant.

  • @GP-eq3gh
    @GP-eq3gh Před 6 měsíci

    For the tax return (this is my first time) do i have to consider the profit and expenses for items/transactions before i hit that 1k profit milestone. Or do i only include the expenses and profit after 1k.

  • @kristynazapletalova1601
    @kristynazapletalova1601 Před 6 měsíci

    I have to say this video is really useful. Thank you!
    I have a question, I’m self employed from June 2023. Do I need to file this form?
    Thank you

    • @SmallBusinessToolbox
      @SmallBusinessToolbox  Před 6 měsíci

      You shouldn't need to file a return until Jan 2025 (absolute deadline). 👍

  • @evanhewitt2331
    @evanhewitt2331 Před 4 měsíci

    Is that 30,000 before or after tax for total income

  • @WeeWalks
    @WeeWalks Před 7 měsíci +1

    Do you have any guides specifically for CZcamsrs income?

    • @SmallBusinessToolbox
      @SmallBusinessToolbox  Před 7 měsíci

      Nothing specific - anything you specifically want to know?

    • @WeeWalks
      @WeeWalks Před 7 měsíci

      @@SmallBusinessToolbox Thanks in advance. I'm using cash basis accounting. Is money earned by UK CZcamsrs considered foreign income? I thought it would be but others have said its not. My payments are made by Google Ireland which I assume is the same for everyone.
      I also read a comment from someone who mentioned VAT and that it can become more complicated if VAT is involved. Perhaps I don't have to pay any VAT. I read that you only pay VAT above £85,000 so clearly that shouldn't be an issue but since someone mentioned it I'm unsure what the threshold is or if we should be paying it.

    • @WeeWalks
      @WeeWalks Před 7 měsíci

      @@SmallBusinessToolbox Do you know if the income is considered foreign?

    • @SmallBusinessToolbox
      @SmallBusinessToolbox  Před 7 měsíci

      Hi - by my understanding 'foreign income' on the tax return is more for if you were employed by a foreign company and paid / taxed abroad. So generally no, for AdSense income that's just part of your self employed turnover and doesn't need declared separately. Correct - no VAT as it's reverse charged AND (since Brexit) AdSense income doesn't count towards the UK VAT threshold since it's out of scope (overseas). Just my understanding though - always worth double checking with an accountant. 😁

    • @WeeWalks
      @WeeWalks Před 7 měsíci

      @@SmallBusinessToolbox Thanks for the detailed response. I've found the hmrc customers twitter account account to be quite helpful for questions also.

  • @yosclark
    @yosclark Před 5 měsíci

    Life saving ✨

  • @kumarkumar-tl3gm
    @kumarkumar-tl3gm Před 7 měsíci

    Hi. can we edit information once we submit it? Or can we submit another one?

    • @SmallBusinessToolbox
      @SmallBusinessToolbox  Před 7 měsíci

      Not easily. You'd need to call HMRC and that can be a challenge, especially at this time of year.

  • @voiceofutube
    @voiceofutube Před 7 měsíci

    I work as an employee full time in a company and I also did some contracts as a sole trader and earned around £12000 from it. Currently I’m on normally tax code in my full time employment. Would my self employment make any impact to my tax code after my first self assessment? Also, do I have to give details of my full time employment while doing self assessment? Don’t they already have it in their system as I’ve already been paying tax and NI every year under that full time employment!

    • @SmallBusinessToolbox
      @SmallBusinessToolbox  Před 7 měsíci +1

      Ha, you're assuming one part of HMRC talks to another part of HMRC 😉. You still need to add the 'employment' section to your tax return and enter the numbers from your P60. It should auto-populate but it's not always correct so worth checking. Tax code shouldn't change. 👍

    • @voiceofutube
      @voiceofutube Před 7 měsíci +1

      @@SmallBusinessToolbox Thank you so much for explaining that. It means AI haven’t taken over HMRC yet. 😄

  • @j700jam4
    @j700jam4 Před 6 měsíci

    Where do the payments on accounts from last year come off?

    • @agee7777
      @agee7777 Před 4 měsíci

      I want to know this because it says I owe money

  • @Sherry78
    @Sherry78 Před 7 měsíci

    What if you don't have a business name?

    • @SmallBusinessToolbox
      @SmallBusinessToolbox  Před 7 měsíci +1

      You can just use your own name if you want. 👍

    • @Sherry78
      @Sherry78 Před 7 měsíci +1

      Thanks so much @@SmallBusinessToolbox

  • @catialattanzichannel6127
    @catialattanzichannel6127 Před měsícem

    Awfully useful!