Guest Blog – The reality of self-assessment!

Oct 9, 2016

 

This week’s post is a guest blog by Helen Watson of Helen Watson Social Media.  Helen decided that as her busines was new and her accounts straightforward, she’d tackle her tax return herself.

 

Read how she got on!

 

“I’ve recently become self employed – which has loads of benefits; I love my job, my clients are great, I’m the master of my own destiny.

Then, this utopia is rudely interrupted by the spectre of SELF ASSESSMENT. My first time doing a tax return, I have a good think about this. I’m an intelligent person, I have maths GCSE, my tax affairs are pretty straightforward. This is the process I will follow:

  1. Log onto HMRC website
  2. Put some numbers in
  3. Celebrate with smug face and accompanying G&T

I decided to do my self assessment in October, to get it out of the way. This was a good move, I may even have it completed by the Jan 31st deadline – assuming the HMRC gods are in a benevolent mood.

 

A brief summary of my actual process:

  1. Log onto HMRC website. I’ve already registered so all I need is my user ID, my unique tax payer reference number, my password (god knows), an access code, my mothers grandma’s shoe size, the cat’s date of birth and my first G&T.
  2. Put some numbers in. Am I using the ‘cash basis’ for my accounts? I don’t know, how am I supposed to know? Do I have any capital allowances? Not a clue.  Do I need to change my class 4 NIC? Am I exempt from class 2 NIC?  Where are my dividend certificates?
    Why don’t I know any of this stuff? Someone, somewhere should surely have warned me about this.
  3. Give up, resolve to complete another day, have G&T.

 

If you have a tax return to complete this year, I have some advice –

START NOW!

It will take about 83 times longer than you anticipate. There will be:

  • Swearing
  • Drinking
  • Searching for documents but finding only receipts for your child’s shoes that you bought in 2013 (not tax deductible)
  • Wondering if HMRC has a plan to send you back to employment by tempting you with PAYE

In the end though, there will be success. You can manage it, HMRC do have lots of hints and tips to help you through the process. You just might have to read some of them 96 times to work out what they actually mean!

 

So to avoid feeling “ruff” on January 31st, don’t delay any longer, and make a start!

If it’s all too daunting, and you aren’t sure where to start, then get some help from an expert – contact Rosie Forsyth at Wilkins & Co.