11 STEPS TO SETTING UP AS A SOLE TRADER (SELF-EMPLOYED) - Post 9

ITEMS TO DO BEFORE TRADING Cont'd

10. COMPLETE A SELF ASSESSMENT TAX RETURN

So, you have completed your first tax year in addition to completing your business accounts as detailed in Section 8. SELF EMPLOYED BUSINESS RECORDS there are other records needed to complete a self-assessment tax return. If you have also been employed during this period or had rental income from a property or received other income or made payments which have associated tax benefits then all these documents are required to complete your self-assessment tax return.

INCOME

1. A P60 from your employer (If you have one) showing your income and the tax you have already paid.

2. A P45 if you have left a job in the current tax year.

3. A P11 or P9D which shows any benefits and expenses

4. Income from self-employment or copy of accounts

5. Savings and investment statements showing how much you have earned in interest and other income like dividends

6. Details of any Pension income (Not state pension)

7. Details of any state benefits

8. Receipts from the estate of a deceased person or as a beneficiary of a trust as stated on Form R185.

9. Receipts from insurance bond and other annuity arrangements.

10. Property income, e.g. furnished or unfurnished lettings, including details of all expenses and dates of occupancy if any let property was ever your only or main residence.

11. Commissions, gains on surrender of life insurance policies, alimony or maintenance.

12. If you have been out of the UK for any long periods (over 3 months per year), the dates that you have been in the UK in the last few years.

13. If you have sold any properties or assets, the completion statement on sale and details of how the asset was acquired.

14. Any recent correspondence from the tax office.

15. Your current address, if it has changed in the last 12 months.

16. Anything else that you think may be relevant to your tax return.

OUTGOINGS

17. Gift Aid payments made to charities

18. Details of Student Loans that are repaid via the tax system

19. Expenses attributable to earned income, including professional subscriptions and any motor expenses not reclaimed from your over and above the HMRC allowed rates.

20. Expenses attributable to your trade or business or copy accounts if already prepared.

21. Personal pension premiums and AVC’s or retirement annuity premiums. Forms SEPC, PPPC and VCC.

22. Payments of maintenance or alimony.

Capital Gains

Stockbrokers’ contract notes for purchases and sale of quoted stocks and shares, including any sales and subsequent repurchases of shares

New offers and issues: e.g. privatisation, demutualisations, rights issues, public offers.

Purchases, sales and gifts of other assets, e.g. houses, land, unquoted stocks & shares and related documents etc.

PAYE notices of coding

23. PAYE Coding

Information needed to complete a tax return: Rental income from buy-to-let properties

In addition to the information needed for the main tax return, to complete the rental income section, for the tax year ending 5 April, we are likely to need the following:

Details of rental income received (before agents’ fees or commissions). Details of expenses relating to the property. These may include:

• Repairs, renewal’s and maintenance.

• Interest on a mortgage or any other loan used to buy or improve the property.

• Any fees incurred on re-mortgaging.

• Buildings insurance.

• Ground rent.

• Utilities, such as water rates, and light and heat.

• Mileage or motoring expenses incurred in letting out the property.

• Agency fees and commissions.

• Any other legal and professional costs.

• Any other expenses which you think may be allowable.

Also, whether the property was let furnished or unfurnished during the year.