[Closed] Self Assessment help. Nightmare or easy?

I'm a PAYE employee and do one and it's complicated enough. I often wonder how self-employed people manage to complete it. I'd probably get an accountant, or at least get some formal advice on how to complete it.

There are some simple software packages that make it really easy.

Start from about £15 per return.

[url= https://www.gov.uk/government/publications/self-assessment-commercial-software-suppliers/self-assessment-online-commercial-software-suppliers ]https://www.gov.uk/government/publications/self-assessment-commercial-software-suppliers/self-assessment-online-commercial-software-suppliers[/url]

The actual filling in of the form is very easy. Hard part is having all the right numbers and knowing what is and isn't allowable. TBH these are numbers you should have if you run a small a business but you may have them in a different format. My first one was a bit of a pain. I've since simplified my accounts and my sections now match the self assessment sections and its simple even with two businesses. When you fill the form out online each part has an explanation on what it means. Why not have a go and if you really struggle get an accountant or come back here with some specific questions?

It's a doddle so long as you've sorted out your accounts beforehand. if your accounts are all in good order the actual filling out and submitting the form can be done in about 30 minutes. If you do it sooner rather than later you'll have time to contact HMRC for guidance on anything you're not sure about.

Depends on the nature of your business but if you are just taking money for jobs and buying the materials here and there then it is very straight forward. You don't necessarily need to breakdown various expenses and can do it in a cash flow basis (ie when does the money actually come in and go out) which really simplifies things. You will need a Unique Tax Reference code and need to sign up anyway so there's nothing to stop you looking at the online form and see if it looks doable for you. Main thing is keeping good records of earnings/ expenses for yourself and you'll have to do that whether you have an accountant or not.

edit:

This....

The actual filling in of the form is very easy. Hard part is having all the right numbers and knowing what is and isn't allowable.

and this... 🙂

It's a doddle so long as you've sorted out your accounts beforehand. if your accounts are all in good order the actual filling out and submitting the form can be done in about 30 minutes.

As above, filling it out is easy enough, if you've done accounts. You get until January to do it online, rather than end of this month.

Get an accountant

Mine "saves" me more money than he costs.

I log my costs and revenues as i go along, get an accountant in year 1, then copy the format in future years. They are v good at saving you money and i yr 1 you can just focus on your business.

Make sure your lifestyle is reflected in the income you post or you will get a visit.

My accountant will do mine.

I log my costs and revenues as i go along, get an accountant in year 1, then copy the format in future years. They are v good at saving you money and i yr 1 you can just focus on your business.

Make sure your lifestyle is reflected in the income you post or you will get a visit.

^how not to do it.

If you understand the difference between capital and revenue expenditure then where to enter them in the tax return then do your own. If not some software will help you post them to the correct areas otherwise just get and accountant and spend the time you would be stressing over completing it yourself by working and getting more income, whilst knowing the tax return is completed correctly and as tax efficiently as possible.

I do ours and it's pretty straightforward, caveats being that we're both employed and the reason we have to do them is for the other bits and bobs that aren't on your P60 - oh and we're both accountants, although Mrs Madhouse is CIMA and she's scared to death of self-assessment!

Unless you're confident you can do it I'd say use an accountant, it'll save you a lot of stress and they'll know all the finer points of what can and can't be done.

I'll echo what others have said. The actual process of filling in a tax return is little more than typing numbers into some boxes. Whether you know how to calculate those numbers and which box they go in is the big challenge. A great example is understanding - or even knowing about - the various tax reliefs that might be available for you. Not including those in your sums could lose you more money than the cost of a tax accountant.

Thanks guys.
Its looking like maybe I'll need an accountant even if it's just for this first bill?
I'll have a look at the software to make it easier but I still think it might be a bit beyond me?

Edit: when i said ^^^^ my accountant will do mine, that's because I pay an accountant anyway to help run my business.

Previously, I've had to fill in self assessment forms on my own and they've been a piece of p*ss, it depends upon your individual situation. Have a look at the form/online version and see how you get on.