You will now receive a tax code from HMRC (within the next 10 working days) and I would be grateful that at the time you receive this code that you email me with it so that I can enter this onto my system so as to represent you in your tax and financial affairs.

 

 

Your spreadsheet is impressive and in due course I will analyse its contents so as to produce a detailed trading, profit and loss account at 05 April 2011.

You seem to have thought of everything other than capital assets like office/computer hardware. What I need here are approx costs if more than three years old but if less than this period then please give me the precise costs of purchase.

 

 

As you aware the last government never liked cars but enjoyed getting as much tax from them as possible or in the case of the self employed restricting tax allowance on them as far as possible. The capital writing down allowances are based on the emissions (it is written as 139g/kg) and so the car will be £12,000 (restricted each year) x 10% = £1200 per annum with a restriction for any private use.

 

I will enter these figures onto your tax return form 2011 together with other financial details that I must enter so as to complete your tax return form 2011.

These financial details include savings and investments (page 3) that is interest received (except for qualifying ISAs/Tessas) and dividends together with any claims that you might wish to make like qualifying (1) gift aid.

 

 

You began trading on 01/09/2010 and I will draw your first financial accounts to 05042011. The figures will be entered onto your tax return form 2011 and the tax will be payable as one lump sum amount on 31012012. As you can appreciate this is a long way forward and so the danger is that you can be lulled into thinking that being self employed is an easy picnic which it is not.

 

Together with this tax payable will be estimated tax equal to one half on account for the year to 05/04/12. By 31/01/2012 you will have been trading continuously for a further 10 months and so HMRC see this as being fair. However you will be surprised that many clients wake up far too late with a tax reserve and so it gives me great pleasure that you are planning for this eventuality. Your second payment on account for the year to 05/04/12 will be 31/07/2012. If your accounts are prepared in advance of 31/07/12 then you will pay the balancing amount at 310712. However if prepared and filed after 31/07/12 then you will have either a further amount to pay at 31/01/2012 (probably right as this will be a full year of trading) but if below then of course you will receive a repayment of tax.

 

I hope that the above makes sense to you!

 

 

My fees are £25 per hour and included is free unlimited email/text/phone support and so hope that you agree with me that this is a good deal for my clients.

 

My Regards

David Barry