tax return guide to help you complete your tax return for 2014

Self Assessment Personal Tax Return

SA100

Presenter: Zee Shan

Content:1. Intro to presenter2. Registering self employment3. Accounts Pack – Income & Expense4. P & L (Profit & Loss)5. Tax Liability Calculation6. Tax Return7. Mistakes to avoid8. Online Registration Process9. Deadlines10. Help & Advice

Presenter: Zee Shan

Introduction of the Presenter

Zee Shan Bawany CTA ACCA MAAT

Tax Manager

Smartfield Accountants

Education

Qualification Centre

CTA (Chartered Tax Adviser) BPP Birmingham

ACCA (Association of Chartered Certified Accountants) De Montfort Uni

ATT (Association of Tax Technicians) FTC Birmingham

C & G 7407 Teacher Training Leicester College

AAT (Association of Accounting Technicians) Leicester College

BTEC National Diploma in Computing Leicester College

Smartfield Limited Tax Manager

Abbey Tax Plc Tax Consultant

Smith Hannah Ltd Head of Personal Tax

Leicester College Tax Lecturer

Employment

Hobbies

Hobbies

Hobbies

Hobbies

Sources of income of an individual

- Employment Income- Bank Interest- Dividends- Rental Income- Pension Income- Self Employment Income

Sources of expense for an individual

- Household Expenses(Duality of purpose rule: Expense without separately identifiable business element is private expense. Household expenses are not allowed on the tax return)

- Pension Contribution- Charitable Donation- Business Expenses

Case Study

Bob The Designer

-Registering self employment-Bookkeeping -Profit & Loss Account-Tax Computation-Tax Return

Registering Self Employment

Registering Self Employment

Options:1. Paper Form CWF12. Online at:

https://online.hmrc.gov.uk/shortforms/form/CWF1ST

Bookkeeping(Case study: Bob the designer)

IncomeCash Bank

01/05/2013 ABC Ltd 3,000.00

01/06/2013 DEF Ltd 6,000.00

01/07/2013 GHI Ltd 7,000.00

10/04/2014 XYZ Ltd 10,000.00

IncomeIncome recorded in spreadsheet as follows:

ExpenseCash Bank

01/05/2013 Diesel for car from BP for full year 500.00

01/06/2013 Materials from DesignMart 4,000.00

01/07/2013 Laptop purchased from Dell 1,000.00

01/08/2013 Stationery from Staples 20.00

01/09/2013 Advert in Yellow Pages 300.00

Accrued Expenses

31/03/2014 Use of home £4p/wk x 52wks 208.00

31/03/2014 Business calls from personal phone 60.00

31/03/2014 Accountant’s bill 350.00

ExpensesExpenses recorded in spreadsheet as follows:

Profit & Loss Accounts

(Case study: Bob the designer)

Profit & Loss AccountsIncome and expense analysed in spreadsheet as follows:

Profit & Loss AccountsIncome and expense analysed in spreadsheet as follows:

Tax Computations(Case study: Bob the designer)

Tax ComputationsTaxable income calculated in spreadsheet as follows:

Tax ComputationsTax liability calculated in spreadsheet as follows:

Tax Return(Case study: Bob the designer)

Tax Return(Case study: Bob the designer)

On the following pages is an example of tax return completed for the case

study Bob the designer.

Fast Food Takeaway

Tax Tables

Tax TablesTax Year

13/14

£

Tax Year

12/13

£

Income TaxTax free income

Personal allowance 9,440 8,105

Rate

Basic rate: 20% 0 – 32,010 0 – 34,370

Higher rate: 40% 32,011 – 150,000 34,371 – 150,000

Additional rate: 50% Over 150,000 Over 150,000

http://www.hmrc.gov.uk/rates/it.htm

Tax Table 13/14 12/13

National Insurance Class 2

N.I. Class 2 Free Income

Small earning exemption 5,725 5,595

Rate

Amount payable per week 2.70 2.65

National Insurance Class 4

N.I. Class 4 Free Income

Lower profits limit 7,755 7,605

RateClass 4 rate between lower profits

limit and upper profits limit9% 9%

N.I. Class 4 Upper Limit

N.I. Upper profits limit 41,450 42,475

RateClass 4 rate above upper profits limit 2% 2%

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Common Mistakes

Solution to Avoid Common Mistakes1. Full name if shared initials in the family e.g. James Johnson & John Johnson;

2. Current address: Always use the current address;

3. National Insurance number clearly mentioned;

4. UTR (Unique Tax Reference) number entered correctly (10 digits). UTR and payment reference are slightly different;

5. Know the deadline dates for paper returns;

6. Use the correct form;

7. Fill out the tax return completely, don’t post partly completed returns because HMRC will not complete it for you, they will simply reject it;

8. Mention the UTR number when making the payment, otherwise it may be allocated to another person;

9. Sign and date your return. Unsigned returns will automatically be rejected;

10. Keep a copy of the tax return.

Online Registration

Process

Visit www.hmrc.gov.ukThen click on “Register for HMRC online services”

Then click on “Register for HM Revenue and Customs”

Then click on “Register – new users”

Then click on “Register for HMRC taxes”

Then click on option “I want to sign up to use the online service…..” then click “Next”.

Then click on option “Individual”.

Tick box “Self Assessment” then click “Next”.

Click “Next”.

Click “Next”.

Tick box “Please confirm that you have read the terms and conditions” then click “Next”.

Enter name and e-mail address then click “Next”.

Note down the User ID then click “Next”.

Log-in after registrationVisit www.HMRC.gov.uk. Then click on “Log in”

Select Self Assessment

Enter User ID & Password

If you completed the registration process fully, then “Self Assessment” will be in the list of services that you can use.

Then click on the option to submit a tax return.

Further step by step example:http://www.hmrc.gov.uk/demo/indivi

dual/self-assessment/index.html

Deadline Dates

Deadline DatesTax Return 2014

Paper Returns 31 Oct 2014

Online Returns 31 Jan 2015

Payment to HMRC 31 Jan 2015

£ £0 – 3mths 100.00 100.003 – 6mths £10/day 900.00 1,000.006 – 12mths 5% of tax or 300.00 1,300.0012mths+ 5% of tax or 300.00 1,600.00

or up to 100% of tax

Penalties for late filing

HMRC Self Assessment Helpline0300 200 33 10

or

Become a client of Smartfield.Call us on 0116 2 98 58 48

Help & Advice

Workshops & Seminars

I deliver regular seminars on how to complete your own tax return. If you would like me to deliver a seminar for your organisation then please get in

touch.

Zee Shan BawanySmartfield Accountants+44 (0) 116 2 98 58 48

zeeshan@smartfield.co.uk

Tax Return Workshop

https://plus.google.com/+SmartfieldCoUk/about?hl=en&gl=uk

Reviewson

Smartfield’sServices

Dr Borislav Boychev (Radiologist)I am very much impressed from my business meeting withMr. Zee Shan Bawany. I had to discuss some tax issuesregarding my limited company with him and he answered toall my questions with a lot of professionalism and patience.He is a very helpful, honest and reliable person. I highlyrecommend him. Many, many thanks!

Reviews on Smartfield

Zahid Sardar (IT Contractor)

Fantastic support, amazing services, brilliant advice, extremely friendly andhelpful, and all for a great price!! I was looking to set up my limited company andI spoke to a number of different accountants but I settled with SmartfieldAccountants after being recommended them by a friend and after speakingdirectly with Zeeshan and seeing just how easy it was communicating with himand how well he explained everything. He took me through the entire process ofsetting up and registering my company, registering for taxes and VAT, etc, and hewas always there, at the other end of the phone, to answer each and all of myqueries that I had. Being new to all of this, Zeeshan was extremely helpful,patient and friendly in explaining all the small details and taking me through allthe options available to me. His advice was always unbiased and aimed at what ismost beneficial for me and my business as opposed to his own and I reallyappreciated that. I am really glad to have been recommended SmartfieldAccountants and to be working with them. I would very highly recommend themfor all of your accounting and tax service needs.

Reviews on Smartfield

Dr Muhammad Shahbaz Sharif (GP)

I am a Doctor working as a GP in Leicester. I neededan accountant in Leicester and came across ZeeShan. I am very impressed and happy with theservice I received. He was clear, concise and to thepoint. Didn't waste my time with fancy jargon. Gotmy work done very professionally. I wouldrecommend him without any reservations.

Reviews on Smartfield

Dr Venu Gopal (A&E Doctor)

I visited quite a few accountants but most of them struggledto answer my queries and said they will find out and let meknow. But Zeeshan gave simple, clear straight answers andeverything is on his tips. Very knowledgeable, friendly andvery professional guy. I would recommend to anyone withouta doubt. Normally I think twice before joining an accountantbut after the initial meeting with Zeeshan I felt like joiningimmediately. Hope this is helpful.

Reviews on Smartfield

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