UK SELF EMPLOYED HELP!
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- JamesBoynton
My first year of being self employed, but i need some help regarding what to put through this tax year, i phoned the self assesssment helpline a few times and spoken to anyone from operators to 'technical' but just cant get the same answer.
basically...
i have a few jobs which i have now finished (some will be invoiced, some wont) but i know i wont get payment until end of april (next tax year) so my question is, which year do they go through? the year ot was invoiced/job finshed or the year you recieve payment?
ive spoken to a lot of people and they all say something different, does anyone know where i can find a definite answer, ive trawled the self employed site but have had no luck
any help would be great
james
- Bottlerocket0
I can't help you here for a definitive answer
However, I would say that it is the when jobs are invoiced that determines their tax year, not when payment was received.
I would seriously look into getting an accountant though. if I feelance again, I will definately use one as they remove so much of the taxation headache away from you.
- Dancer0
Bottlerocket is right (again!). Pay tax on the invoice that you bill (use the date on your invoice) not when you have been paid. This is what I do and have not had a complaint form mr taxman. Infact he owes me 73p as I over calculated :)
- milo0
You really should look into getting an account. For all the hassle it's totally worth it - you may find (if they're good) that even with their fees they'll save you money on you tax bill.
- Bottlerocket0
I really really endorse what Milo said.
Get an accountant. It is worth it and it won't cost you an arm and a leg either.
Furthermore, when it comes to provisional tax next year, having an accountant will help you manage next years cashflow more effectively by strategies such as setting up a company for you, etc.
- soda0
get an accountant.
it will save you money.
and brain ache.
th
- Terminal270
Hey! What they all said!
We got an accountant to help out with our taxes and it was really worth it. I think he charged £185 for sorting out the whole thing (all the calls and filing of accounts).It is VERY worth doing. They also are good at making it look like you lost money, so you pay less tax.
:-)
- trevedda0
I think you'll find that you pay tax on money once you recieve it not when you invoice for it. Otherwise, if they didn't pay you you would have to claim that back from the tax man. There were some new rules recently about work that was done in one year and invoiced/paid in another tax year but I think they refer to companies rather than individuals. Basically the tax you owe is based on the money you have recieved not the money you asked (invoiced) to recieve less all your legitimate business expenses.
Accountant should sort you out if you're really struggling though.
- sichi0
you don't pay your Self-Assesment until the year after. So this year (before Jan 31st) I paid income tax for the tax year 2005-2006 (ending April 06).
So anything you have earnt after April 06 until April 07 you won't have to pay tax on until September 2007 (deadline Jan 08).
You do pay National Insurance contributions throughtout the year, but these are categorised at a standard self-employment level and aren't affected by the amount of money you earn.
Getting an accountant is a very good idea, saves a lot of stress when it comes to filing papers with the tax man.
- mirrorball0
they won't give a fook what year you put them in to be honest as long as you do
- JamesBoynton0
Cheers for the help guys, ive been told so many different things and am still a little unsure....
with regards to an accoutant, ill def look into it next year but for just now im only making a few quid freelance so will need to wait till that goes up.
mirrorball... i think you are right, as long as i didnt slip through the net itll be cool, im just suprised that the poeple at the tax office dont seem to know, most of the technical people say its from invoice and sound confident and most of the normal assistants think its from when its recieved
cheers guys
james