Just had my first tax return sent to me

[waitingforgodot]

Ok, heres the deal. I am self employed working from home with no outgoings or potentially around £30 max for ink cartridges. I invoiced £3300 last year. I pay my own NI. Do I still pay tax? (is there a clueless emoticon?)
I could go ask my mate who's a CA but I thought you mumsnetters would be quicker!

Do you have any other income of any kind such as investment income, or capital gains or rental income or any other money coming in at all of any kind?

As long as you have no other sources of income you won't need to pay any tax as you earn under the personal allowance.

You still need to fill in the forms though.

No other income apart from tax credits and child benefit.
Will fill out the form when I feel stronger!Is there any point in me putting ink down when I am under the personal allowance anyway?

I don't put down any other expenses when I am under the threshold. Have they sent you the 'short tax return'? much easier to fill in. You have until September to do it you know.

Oh brilliant! Thanks Suwoo. Thanks all for your help. I knew I could find a quick response on here!

Not that I'm an expert ~ I'm certainly not, but I'm sure that I've heard before that you should put down all your outgoings and if you work from home that includes heating etc and you could be in for a tax refund. It's definitely worth asking someone who knows for sure.

£30 though solo? I know you should but £30 per annum isn't really going to earn you much of a tax refund is it. £30 per week or even per month...maybe.

I work from home and don't claim any additional things either. -too-- lazy

quick warning re heating and bills - the rule is that you can only claim something that is solely for work purposes. some say this means that you can claim a proportion of heating bills - but the proportion is actually pretty small - heating your "office" (ie one room) for x hours a week.

Well, I would. Every penny helps and why leave it in the purse of the Government/tax man?
I'd really ask an expert. Heating your working area is a massive expense and if you can make a claim for that as well...Definitely ask

You don't get a tax refund if you have made a loss, only if you have previously overpaid tax.

waitingforgodot - to be on the safe side you should definitely fill in the return. Your position is not as simple as just earning £3300.

With tax credits and so on it becomes more complicated to say whether you owe tax or not. I know some people in the past had to pay back tax credits.

Try to get the short form though as that is much easier to fil in. My return ran to 250 pages plus supplementary data last year and HMRC still completely messed it up.

Yours is much much simpler than that of course. Just pick a quiet day well before the deadlines and sit down with all your invoices, expenses and bank statements. Get it sent off and keep a photopcopy and proof of posting (free of charge if you post at the Post Office).

Keep a file of all your invoices and expenses and bank statements with the copy of the return for at least the next 7 years just in case HMRC do an Enquiry (unlikely but possible).

thanks for that. I will do.
Now here's the thing....I heard if you claim for utilities on a home office, then when you come to sell the house you are liable for Capital gains tax.
True?
I think I read it in the Sunday Times so it must be true!

Yes it is true. Don't know how it is worked out but it is probably complicated. I suspect it would only apply to the portion of your house used for business purposes but don't quote me on that!

Final filing date for tax returns is 31st January by the way. 30th September is only the date if you want the revenue to calculate your tax for you.

You can also fill in the forms on-line - you don't have to do the paper forms.

another thing to take into account about claiming utilities is the issue of council tax and business rates.

I know that tax and council tax are entirely separate but, it would seem to me sensible to ensure that your position as to the extent a room is a business room is consistent. It may be perfectly compatible to claim some heating costs as business costs while still paying domestic council tax only - but it seems worth checking.

see this sheet re council tax and working from home here

Niecie that isn't quite correct.

As of 2008 the Sept deadline no longer exists. A paper return needs to be in by 31 Oct and only an online return gets until 31 Jan.

thanks for all your help.