First time self assessment - is it difficult? I'm very worried

[Whitevase]

For reference I'm menopausal and suffer with anxiety!

So I've had a little craft business for the last couple of years just to earn me some money while my little boy is at home. I can make a profit of anywhere between £600-£1000 a month.

So I know I'm under the tax bracket but I've been told I still need to do a self assessment which I'm getting very anxious about. I've been told I need to keep track of all my spending which I will do going forward but in past I've not kept any receipts! I'm always buying little bits here and there when I see things I could use. Few pounds here and there on bits and pieces. It's never occurred to me to save receipts or keep track of anything as it's been a little sideline. Now I'm told I have to do a self assessment I feel like it's suddenly got really stressful.

I've registered online and now waiting for my unique tax number before I can start but I'm full of worry that I'll do it wrong or not have enough I formation that they need.
Is it really scary? Or complicated?
If I get an accountant to do it for me won't it cost lots? Considering I don't make much money would it really be worth an accountant?

It's my only income I don't have any other jobs.

@Whitevase my advice is not to procrastinate and get on with it. However, do it in stages.

Some parts require you to add several things together for example interest on savings accounts. As you do the tax return set up your own spreadsheet or table to record interest from each account and the total. Add notes as to where you got the info and set up folders (electronic or paper) so you can store documents receipts going forward.

WRT the future use your camera phone to photo receipts this way you aren’t trying to find paper receipts. Each month update your accounts etc. as it’s easier than doing a whole year in one go.

I must admit I just used to have a drawer (and a spreadsheet) for receipts. Each year the drawer got tipped into an envelope and labelled.

For a small business like yours, it's incredibly easy. There is nothing to worry about. Just keep all receipts and write everything down. You don't need an accountant. Also, don't wait until the last minute in January to file - I recommend doing before end of October.

@Whitevase

i understand about the menopausal fog & anxiety, it's a complete bitch for many of us.

honestly, you don't need to stress about this, nor do you need an accountant.

Keep records in whatever way is easiest for you. My friend puts off entering his receipts etc in his spreadsheet because it's on a desktop in his attic 'office' & was getting himself in a right mess🙇🏻‍♀️ so I suggested he has a accounts journal & plastic wallet in a convenient place and just fills it in manually & puts the reboots in the wallet. He had to be trained 😂to get as many receipts as possible. But just to write (no receipt) next to any he didn't. He's pretty good now, but still a wee. It of a 'work in progress'. Love him to bits, but agree with a pp, if he can do it anyone can!

there's loads on line about what you can/can't claim (% of household various household expenses) but if you find that overwhelming someone will help x

It is fairly straight forward. The assessment itself is quite long, but you'll find that there are bits you can skip/don't need to complete.

Open up bank account (doesn't have to be a business account). Mine is a savings account attached to my main bank account For my side hustle it all comes in/out of my main bank account and then I transfer into an attached savings account/move to main bank account as necessary - I use the 'reference' bit on the banking app to say what it was - eg - I've just bought some ink from Amazon and I've moved money out from my side hustle savings account into my current account and referenced it as Ink. A customer paid for something last week and I banked it into my current account and then transferred it into the savings account with a reference to the customer/invoice number.

You'll need to keep some sort of 'list' for money coming in - whether that's via hand written invoice book, or spreadsheet or similar. Unless you have a complicated carry on there's little point in paying for one of the small business apps.

All receipts go into a tub on my bookcase.

I do a reconciliation monthly/every three months (just so I can keep up). And keep a running total of all the ins and all the outs. Ready for the tax return.

There are allowances you can get as well - eg for using home as an office etc.

Don't forget there's a difference between getting £1000 in a month to making £1000 a month.

Just adding you are required to keep your records for 6 years

@User364837

It’s 2 years for SA. Also very unlikely anyone would look at it after the S9a window has closed.

@Zeeze Agreed highly unlikely to be looked at but I wouldn’t recommend anyone get rid of their records after 2 years.

How can he do it each month? A tax return is annual. I know it will be going digital but I didn't think it had been rolled out yet?