[John Gregory]

I've been trading since last June, So im in the process of filing me first tax return which has got to be in October , or January if I do it online trouble is on paper I've not earn-rt much more than what I have spent , I've had some lean months over the last year , wasted money on crap advertising etc , Things are picking up now but as soon as you get a decent run of work there is always something kick you down again , van repairs , truckmount repairs etc . Any way as the title what is Mr tax man expecting of me

Thanks   John   

[Mike Osbourne]

You will have receipts for advertising costs won't you.

As for crap first year I suspect they would be more curious if you had done well.

[Neil Williams]

Most new set up businesses make a loss in the first year. They'll start getting a bit edgie if you show a loss year after year.
Don't worry about it.

[Jim_77]

Whatever you submit you need proof of ON PAPER.

You need a copy of every invoice you issued to every customer, and also every invoice and receipt you were issued with whenever you bought something.

Your bank statement is not valid evidence.

Credit card receipts are not valid, for example it must be the additional "VAT Receipt" that you ask for in the petrol station when you fill up.

You don't need to send them all the paperwork, just have it kept on file if you are asked to produce your financial accounts etc.

Your actual turnover & profit/loss is irrelevant to the taxman as long as it doesn't ring any alarm bells, e.g. you turned over £20,000 but your expenditure was £1,000,000.

If you can't prove it, it didn't happen.  That goes both ways too, remember

[Mike Halliday]

he's expecting you to fill in your return honestly, and be able to prove everything you say if he ask you to ( but he won't)

he couldn't care less if you made a profit or a loss.


but why are you doing it, that's what accountants are for!

[carlton care]

Exactly what you are offering, details of imcome achieved, minus................setting up costs, marketing, training, etc, etc.

Be aware that you had to buy food and pay mortgage, etc over the past year, so make sure you can show where the money came from to pay for those. If you have a partner / wife / you can claim that they have been kindly subsidising you over the first year.

Making a paper loss is not uncommon in the first year.

If you have the receipts to back up your expenses you have nothing to fear. Beware of fuel costs exceeding a reasonable mileage for work done.

[John Gregory]

Mike

I do intend using a accountant just getting everthing in order before I go and see him

John

[Jim_77]

I don't use an accountant, don't even use Sage or Quickbooks, simply keep excel spreadsheets and folders full of paper

Tax return takes about 30 minutes once a year doing it online.

[Len Gribble]

I think I’m in love with my accounts she looks like my wife and saves me a few bob where the wife costs.

Len

[Mike Halliday]

Jim, you're just a smartie-pants : :

the amount of time it would take me I'd rather pay an accountant.

[Shaun_Ashmore]

Same here Mike, I or should I say we have to submit 3 sets of accounts, I'd rather be cleaning carpets or someone extracting my teeth than go through that.

Shaun

[M.Acorn]

Mine costs me £270 pr year ! worth every penny it`s tax deductable anyway .I  got a £900 rebate in my 2nd year so worry not 

[Mike Osbourne]

exactly, a good accountant will cover their cost easily. They are also a good referral source.

[spindle]

in my first year of being tax registered..........

i lost £700

wife tells me that i can bring this forward in to the second year 

can anyone shed any further light on this.......

[PaulKing]

yes she is right, you can carry the loss forward, or claim relief for this year but depends if your a company the relife this year is less than claiming relief next year.

Will Mr tax man believe me?
get a accountant/tax advisor they know more than you do(it's their job too) , filing your own accounts, is like a customer cleaning their own carpets.... you might think you saved money but have you ?

Do you know you can claim £250 per employee for staff parties?

are you claim for home office without going over the thresehold for capital gains tax ?

what mileage allowance  are you claiming for your use of your own vehicles?

have you written down the value of your tools &  equipment ?

Have you claim the retrospective allowance fot IT equipment? ( that includes mobiles)

Good accountants cost less than they charge. FACT!