Self-Assessment Tax Returns must be filled if you meet one of the eligibility criteria of HMRC. IT does not depend if there is any taxable income or not, Its an obligation and compliance. Self Employed Individuals and Sole Traders will file their Self-Assessment Tax Returns and fill in SA103 Form to detail their business turnover, claimable expenses, tax allowances and taxable profits or loss.
Self-employed or sole traders with relatively small turnover for 2017-18 below then £85,000 can submit Form SA103S. It’s the short version where HMRC allow individual just to put total of claimable expenses instead of giving details of each expense.
For business where turnover is more then £85,000 the tax payer should use Form SA103F. It would include details of all expenses and a balance sheet which will account for all assets, debtors, creditors and bank and cash balances of the business.
Special care should be taken when filling SA103 Form. There are some expenses which may not be allowed by HMRC and may not count towards business expenses. Business expenses will be those which have been incurred during course of business. Entertainment is disallowed by HMRC. Tax relief can be claimed on Capital Expenditure.
If you are a sole trader or self-employed individual you must register with HMRC for self-assessment within 30 days of starting your business. You can register online or by filling SA1 and sending it to HMRC by post. You will be sent your Unique Taxpayer reference to file your tax return online.
IF you need help with registration as self employed with HMRC or SA103 Form, call us today or just fill the below form with your question and we will respond within 24 hours. Alternatively you can fill in our form ASK AN ACCOUNTANT A QUESTION FOR FREE and we will get back to you with related guidance.