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:"

-that should read £30

If your expenses are greater than your income, then yes you have made a loss, so you would answer yes to the first question.*

The second question is asking if you have sold any assets that would be chargeable to capital gains tax. These are not things you sell as part of your day to day business but tend to be bigger, one-off items. For example, selling a rental property.

*if you only have £30 of expenses, are you really trading? From HMRC's perspective, it might be classed as a hobby.

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

I only have low expenses as I work from home, but I do earn income from it. Even if it were low income below the tax threshold it still needs to be declared.

If you make money from some thing the HMRC don't distinguish between 'hobby' and 'proper work', income is income.

The hmrc help line are much better than me at advising on what to put in the boxes, when I first started doing mine and dps' tax returns as we are both self employed, I phoned the help line a lot. They were always very patient and good at explaining things.

thanks. don't have a phone line actually at the moment though.

Flibbertyjibbet - if it is someone just selling a few things to friends on an ad hoc basis, then it can be classed as a hobby. See HMRC guidance here (Example 1) . This is why I asked if tonyf was actually trading.

thanks for that link offlinefor40years. was quite interesting to read. think i do have to put a return in though.

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:

-

which all seems quite complicated...

Flibbertyjibbet - is the helpline a freephone?

0845 900 0444

Eh no, hmrc is not a free phone number. If you work from home are you claiming expenses for working from home?

There is an 0161 number which may be cheaper to call. You need to call from a mobile though as it is meant to be for overseas callers so if you ring from your landline you just get a message referring you back to the more expensive 0845 one.

Have a look on Saynoto0870.com for the exact number.

You make a loss if your income is less than your allowable expenses, so tick this box if this is true.

You make a (potentially chargeable) capital gain (or perhaps a loss) if you sell an asset e.g. shares or a home that has not always been your Principal Private Residence so tick this box if you have done this.

well this bit:

"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:"

looks like a definite no to that bit then, at least, it seems...

thanks mranchovy...

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

---

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:

---

I think this section refers to 'other,' income tax losses. Your loss relates to self employment which you should have covered elsewhere in the return. In which case I would delete this section.

I would recommend calling the helpline as they will be able to advise you on how to complete your return according to your circumstances.

thanks. offlinefor40years. that was my thinking. not got a landline at the mo. i guess i have until january until to get this all dealt with in theory though.

help still much appreciated with this. thank you