Need help filling in my tax return...

[tonyf]

i'm doing the "tailor your return bit" on my self assessment - it should in theory be an easy business as i've not made any money for this tax year, though i do have about £30 expenses (just postage, stationery)

what do i click yes or no for these questions? i think (?) i know what to click on all the other boxes in this section.

"Have you made any income tax losses in the year 2012-13?"

"If you disposed of any chargeable assets, or had any chargeable gains, or you wish to claim an allowable loss, or make any other claim or election, do you need to complete the Capital Gains section? Please check help:"

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it is not my first year of being self employed. just a bit hazey about doing the form. have made money in previous years.

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if you click on yes on "Have you made any income tax losses in the year 2012-13?" in the "tailor your return bit" - it brings up this section later in the form:

You have said that you made income tax losses in the tax year 2012-13. Please complete the following questions.

Earlier years' losses (which can be set against certain other income in 2012-13):£

Unused losses carried forward:£

Relief now for 2013-14 income, or certain capital losses (Read the notes before completing this question):£

Please specify the source of loss in the question above:

Year for which you are claiming relief above:

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which all seems quite complicated...

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there's been no money coming in and about thirty pounds have gone out very disposable expenses (to be specific postage, stationary)....

What they're asking is 'if you've made losses in your trade what do you want to do with them?' I haven't done a return online so don't know what to tick/untick but I can tell you what the rules are

First question: did the losses (£30) occur in the process of you trying I make a profit? If not then there's not much you can do with them.
2nd question: are the losses related to a trade, not investment activity (I.e rental or similar)? If they're related to trade, then continue reading :)

Losses can be:

1. offset against other income in the same year
2. carried back against income in last tax year
3. carried forward against profits FROM THE SAME TRADE in following tax years.

If the losses are generated in the first four years of the trade then you can also carry them back against your total income in previous three tax years (earliest year first).

"First question: did the losses (£30) occur in the process of you trying I make a profit? If not then there's not much you can do with them."

Err... yeah I guess so? I'm not quite sure I understand the phrasing of that question/

"2nd question: are the losses related to a trade, not investment activity (I.e rental or similar)? If they're related to trade, then continue reading"

I've not been involved in any rental, so I probably guess "yes" to trade (?) for that question...

Losses are only allowable if you were attempting to make a profit. So if you only started your trade in march 2013 and didn't actually have any sales but had some expenses before the year end then the losses are allowable. Mainly because you are intending to make a profit in the near future.

But if you don't have a good business idea but bought some stationery in the hope that you may have some income in the future then the losses are not allowable. (Not saying that's what you're doing, just giving an example)

"But if you don't have a good business idea but bought some stationery in the hope that you may have some income in the future then the losses are not allowable. "

That's rather subjective. What if you made money in similar fields but you've changed directions a bit.

I can't tell you what the answer is because I don't have enough info of your circumstances. You would know better than i do whether you have an clear intention to make a profit.

Isn't that rather difficult to prove in many circumstances to the HMRC?

Well, they wouldn't worry about £30, I don't think. But if you claim £100,000 as a loss and never report any profits they may have a few questions.