Accounts question

[Chris H]

If I decide to bypass the accountant this year and so a self-assessment for me tax return what exactly do I get back from HMRC?

Like with an accountant I get a signed statement of accounts, profilt and loss and all that. Which is useful when dealing with governmnt bodies and ngo's etc. So what would I get from HMRC? Is there a form they return giving an indication like a statement of accounts?

Ta.

[Jeewhizz]

Not that I know of - that's part of what you pay an accountant for.

[Mr Anderson]

You'll pretty much just get a bill telling you how much is due in July and January. But you will get the opportunity to print off your self assessment form which should include all of that.

[Chris H]

You'll pretty much just get a bill telling you how much is due in July and January. But you will get the opportunity to print off your self assessment form which should include all of that.

Do you know if it has an official HMRC number, this self assessment form?

[sarahA]

When you complete it online you get what is essentially an electronic copy of the paper version. So the front page looks the same, it has your tax reference number on etc. Then once they've checked it over and updated your account, you get a statement through the post informing you how much you owe them and how much you'll have to pay for the two payments due in July and January.

This is paperwork that you should already be getting via your accountant or directly to you anyway. Regardless of having an accountant or not, these are both proof of your tax return and what you owe and you should have copies from the last X years.

That's all you get from HMRC. The rest of the information has been produced by your accountant via their software. You can pay far less than you'd pay an accountant and manage this yourself. One such system is kashflow.co.uk which Mr. Jee put me on to. It's simple to use, you can customise the reports to suit how you work, and you can generate invoices from it, have them emailed to you or to the client directly. It will also email you when payments are overdue. You've also got Sage if you really fancy it!

Most of these accounts packages will be able to produce similar reports if you configure them correctly.

[Chris H]

Thanks Sarah.

I did the trial of Kashflow a few years ago and it really is an excellent service. Not financially viable for me though, the accountant was cheaper!

[sarahA]

Your accountant cost less than £100 a year? Blimey, I'd keep 'em!

Usually, I'd say if your turnover is over £15k then you need a semi decent accounts package, or write your own (I had my own in PHP/MySQL for a few years, similar to kashflow, just not in pink!), so that it's easy to get the values you need for the expenses breakdown, else it can take an age working it all out from something like Excel. However this year the SA form has been reduced to just a few pages and is meant to be easier, so until I look at it (probably a week Friday) I can't really comment on how much you'd need to do. But I can update this thread once I've used it

[Chris H]

Your accountant cost less than £100 a year? Blimey, I'd keep 'em!

If I could find them then I would! Not getting any response via phone or email. 

[Mr Anderson]

You'll pretty much just get a bill telling you how much is due in July and January. But you will get the opportunity to print off your self assessment form which should include all of that.

Do you know if it has an official HMRC number, this self assessment form?

Mine has a UTR number and an IR Mark number and the summary after the form copy itemises profit and loss, along with quite a lot of other information based on your assessment:

Income received (before tax taken off)
Pay from all employments
     plus benefits and expenses received
     minus allowable expenses
Pay from all employments

Profit from self-employment
Profit from partnerships
Profit from UK land and property
Interest received from UK banks and building societies
Dividends from UK companies (plus 10% tax credits)
UK pensions and state benefits
Gains on life insurance policies etc.
Other income
Total income received


minus
Losses
Payments into a retirement annuity or contract etc.
Loan interest payments
Annuities
Gift of investments and property to charity
Trade Union death benefit payments
Personal allowance
Age related allowance
Blind person’s allowance
Blind person’s surplus allowance from spouse
Total

Total income on which tax is due

How I have worked out your Income Tax

Pay from all employments
Amount Percentage Total
Pay, pensions, profit etc.
Interest received from a bank or building society etc.
Dividends from companies etc.

Total income on which tax has been charged

Income tax charged
minus Top Slicing Relief
minus Venture Capital Trust relief
minus Enterprise Investment Scheme relief
minus Community Investment relief
minus Maintenance and alimony paid
minus Married couple’s allowance
minus Surplus married couple’s allowance from spouse
minus Notional tax from gains on life policies etc.
minus Notional tax from scrip dividends and other income
minus Widows and orphans pension relief
minus Relief claimed on a qualifying distribution

Income Tax due after Allowances and Reliefs

Tax due on Gift Aid payments
Income Tax due after Gift Aid

plus Tax due on annuity payments
minus 10% tax credits on dividends from UK companies (not repayable)
Income Tax due
plus Class 4 National Insurance Contributions
Total Class 4 National Insurance Contributions due
plus Underpaid tax for earlier years in your tax code for 2006-07
plus Student Loan repayments
plus Total pension saving charges
plus State pension lump sum payment

Income Tax and Class 4 National Insurance contributions

minus Tax taken off
From all employments
CIS25 vouchers and profits
Partnerships
UK land and property
Interest received from UK banks and building societies
UK pensions and state benefits
Void ISAs
Other Income
Underpaid tax for 2006-07 included in your tax code for 2007- 08
Total tax taken off

Income Tax and Class 4 National Insurance contributions due

plus Tax already refunded in the year
plus Unpaid tax calculated by reference to earlier years

Total tax due
2006-07 balancing payment

Estimated payment due by 31 January 2008

1st payment on account for 2007-08 due 31 January 2008
Total Due by 31 January 2008
2nd payment on account for 2007-08 due 31 July 2008

[Chris H]

Thanks Mr A. Good to know.

[Chris H]

Then once they've checked it over and updated your account, you get a statement through the post informing you how much you owe them and how much you'll have to pay for the two payments due in July and January.

Any idea of how long it takes for them to go over a submitted online return?

Did mine a few days ago and discovered I'm due a 4 figure tax rebate as my employers had set me to a BR tax code for gawd knows how long 

Would like to know when they're going to refund me 

[sarahA]

The statement could take a couple of weeks - month or so. I can't remember how long it takes and I only submitted mine on Friday.

I'm not sure how long a refund would take either. Never got one of those

[Mr Anderson]

I've had a rebate within 2 weeks before, but that was after going in to the local tax office to get it pushed through. It may be worth calling in to your local office if you haven't got it within the month.

[Chris H]

Thanks Mr A. I'll get on the phone!

[Chris H]

Already been paid into my account! 

All I need now is for them to say it's all a mistake 

[Matt]

Already been paid into my account! 

All I need now is for them to say it's all a mistake 

just ready for drainage fees

[Chris H]

Already been paid into my account! 

All I need now is for them to say it's all a mistake 

just ready for drainage fees