Self assessment tax question

[justin44]

I’ve had my own company and done self assessment for a few years but my accountant has always sorted everything. My son is now a self employed plumber so will complete his own self assessment this time next year, I’m just trying to get my head around how the form will look. Because he is in the building trade he’ll be under the CIS scheme so 20% taken before he gets paid, he won’t earn much over £10k so he should get a tax rebate once completed but how does he show mileage @ 0.45 a mile and other expenses like mobile and protective clothing. Online is there a question that what did you invoice then what expenses have you paid?

Anyone doing this without an accountant?

[higham5]

I do my own self assessment, but am not in the building trade. When completing the tax form on line there is a box stating do you want to complete expenses as a single sum or breakdown. If he selects breakdown you get all of the categories PPE , travelling, office expenses ( this is where I code my mobile) , training. etc. These each have a small guidance note to explain the category. At the end the expenses are summarised as one line, but the breakdown is still visible.

[mr.chef]

Could he not just have an accountant submit it for him? Mine charges around £200

[craig1912]

Could he not just have an accountant submit it for him? Mine charges around £200

he’s earning £10k and has no need of an accountant let alone spending £200 on something that is very easy to do.

OP as has been said, it’s all there online and simply to do with helpful notes if he gets stuck.

[unclealec]

HMRC seem to have become much more customer-friendly these days. They even contacted me to point out that I was declaring as income some tax-at-source pension payment, and knocked it off my SA submission.

[justin44]

I do my own self assessment, but am not in the building trade. When completing the tax form on line there is a box stating do you want to complete expenses as a single sum or breakdown. If he selects breakdown you get all of the categories PPE , travelling, office expenses ( this is where I code my mobile) , training. etc. These each have a small guidance note to explain the category. At the end the expenses are summarised as one line, but the breakdown is still visible.

Thanks everyone I thought it would be something like this, I was listening to a radio report saying that most people do it themselves these day as it’s got that easy. Mine 9s done by an accountant as they handle my business and my vat.

He’s getting the hump because of the CIS taking 20% I keep telling him he’ll get it back but that’s a big chunk of a small wage to loose each week.

[David_D]

Thanks everyone I thought it would be something like this, I was listening to a radio report saying that most people do it themselves these day as it’s got that easy.

Hm! That's wishful thinking! A good accountant should be able to save you more than they cost in terms of not just tax advice but more generally.

HMRC guidance on employee travel (for those with employees or operating via a company) runs to 70+ pages. That's just travel!!

[jimyu]

Depending on his level of expenses the £1000 trading allowance might be more beneficial (and easier)

[Mr G Imp]

Thanks everyone I thought it would be something like this, I was listening to a radio report saying that most people do it themselves these day as it’s got that easy. Mine 9s done by an accountant as they handle my business and my vat.

He’s getting the hump because of the CIS taking 20% I keep telling him he’ll get it back but that’s a big chunk of a small wage to loose each week.

Any work he does as a sub contractor will be subject to 20% tax at CIS - presumably if he is earning 10k as a self employed plumber he is working part time.

When he does any work that is directly invoiced to a private client, that will be taxed when he does his tax return so he will get all the money he invoices for.

There are options with mileage and vehicle use - ie you can claim for your van costs and fuel - or a per mile basis. The per mile one could be a faff as you have to document your journeys (could be wrong but that’s what my accountant told me a few years back)

[Mr G Imp]

If he is working as an apprentice he should be employed not self employed.