Tax return expense help please

[crackerjiller]

I'm panicking now as the deadline is so close. Struggling to find professional help.

I'm a self employed carer. I need to do my tax return for 6 months of work. Stupidly thought I could do it myself but I'm getting so confused over the allowable expenses. I've talked to other carers who contradict each other and I end up in a spin.

Please could you list allowable expenses I can use as a carer. I'm confused about the car expenses and mileage. Council tax. Time doing invoices. Someone said I could put a percentage of what my car is worth.

I am trying to find an accountant but obviously it's their busiest time.

Is this the same with Covid tests and gloves? I seem to get through a lot.
I can use 20% of the cost towards my expenses?

You can use the whole expense if they are wholly and necessarily for the carrying on of your trade.

When you log in, you'll be asked for your income (what you've earned) and your expenses (what you've spent, including the PPE etc and the costs of travel). Then HMRC will work out your tax bill by deducting the expenses from the income, taking into account your personal allowances etc. You tell them the whole amount, but you don't "get the money back" for your expenses, you just pay tax on less of your income.

So say you received £1000 in wages/fees, but you spent £50 on PPE & Covid tests, and £30 on mileage to get to clients at 45ppm, your taxable income is not £1000 but £920. Does that make sense?

I think it's up to you what you do about the shopping - I can see arguments either way. If you are always receiving the reimbursement for shopping as a separate payment from your income, you could not include it, or you could include it as both income and expense (in which case it will cancel itself out and not appear as part of your taxable income).

You put the full amount in expenses, these are for your work, so yes, 100%.

OP you need to talk to someone in a professional capacity as your tax advisor.

If you were subject to an enquiry, it really isn't going to be a valid excuse to say 'well I started a thread on mumsnet and some unknown person, who may have been making it up as they went along, told me I could do this'.

HMRC would take a very dim view on that as you wouldn't be considered to have taken reasonable care to get it right.

@crackerjiller I don't mean to be unkind but you really don't seem to know what you're doing, even the basic bookkeeping side of things. Please get proper real life help, even if it means filing late.

I urge anyone else reading this, do your tax return in April or as soon as you can after that so that you have time and breathing space. The pressure of a January deadline is very stressful especially when you've already had 9 months.

I'm asking questions on here because I can't get help in 'real life' accountants are surprisingly busy at the moment.

I am grateful for everything everyone is saying.

The sort of amounts OP is talking about it would not be worth incurring the late filing fee and borderline not worth paying for an accountant.
we are talking very low amounts.

do your best OP.
as you say, once you’ve filed you can amend if necessary.
as long as you do it in good faith and with evidence it back up your figures (a spreadsheet breaking it down and receipts where relevant) you will be absolutely fine!

I know I'm another random on the internet, but I work for an accountants. We are being contacted by people like yourself and as you say, we are very busy and not taking on new clients. We are advising to complete your tax return to the best of your ability and submit by 31st, so you don't incur a late filing fee. Then find an accountant ASAP to review as you have a year to submit an amended tax return. However, if you end up owing more tax to HMRC, you will be charged interest for late payment on the outstanding balance. So don't leave it ages to find an accountant.

www.gov.uk/self-assessment-tax-returns/corrections

Regarding home as office - HMRC have a standard allowable expense of £6 per week, or £312 per annum

www.gov.uk/tax-relief-for-employees/working-at-home

I note that you have received various different points of advice regarding mileage. I hope this will help

daytodaycare.co.uk/mileage-allowance-relief/?amp

You mentioned a colleague had said her accountant claimed 6% of her car value. It's a bit more complex than that.

www.gov.uk/work-out-capital-allowances/rates-and-pools

I hope this helps you. Best of luck.

Also, you don't need to find an accountant to submit an amended tax return, you can do it yourself.

If you can, it is best to set aside a bit of time every week to do your accounts and then come 6th April you will be ready to submit your tax return.

Forgot to say, don't forget to include on your tax return

Any gift aid payments - increases your tax free allowance
Any grossed up personal pension contributions you may have made - increases your tax free allowance
Any interest earned on savings - not ISA as tax free.
If you have a student loan and the plan type.

So I've decided to use the flat rate with regards to mileage. I have used my car for work only but used my DH card for some of the journeys depending on where the client lives and their abilities. Do I need to report/ record whose car did what mileage?

In the unlikely event you get your tax return enquired into, you’d have to show how you reached the figure you reached. not sure which car really matters but if you know it when you work out the miles then note it down. But honestly I’m 99.99999% no one is ever going to ask or check as your amounts are so low.

I record miles each day but haven't recorded which car I used.

They won't care which car you used because the 45p is a flat rate across all makes & models.