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