UK Tax System advice
April 19, 2017 6:34 AM Subscribe
Can anyone please explain to me how the tax system will work in my situation. My personal income tax allowance is £10,100.
• I am a casual worker and earned approximately £5000 last tax year from this.
• I did online work for Lionbridge and have earned approximately $6000 from this. I need to declare my earnings for this.
• I am a private landlord and need to declare £1947.90 of profit for the 7 months I have been letting my house.
I realise I will have to do a self-assessment tax return. Do I declare the money earned via Lionbridge and the money earned from being a landlord in the same tax return or do I need to do two separate ones. Thanks for any advice.
• I am a casual worker and earned approximately £5000 last tax year from this.
• I did online work for Lionbridge and have earned approximately $6000 from this. I need to declare my earnings for this.
• I am a private landlord and need to declare £1947.90 of profit for the 7 months I have been letting my house.
I realise I will have to do a self-assessment tax return. Do I declare the money earned via Lionbridge and the money earned from being a landlord in the same tax return or do I need to do two separate ones. Thanks for any advice.
Best answer: When you complete your return online, you'll have the option to say whether you're employed, self-employed or both, and there will be options to declare multiple instances of self-employment. Each has its separate section of the tax return. You may also be liable for extra national insurance contributions for the self-employed part of your earnings.
You should already have notified HMRC that you're self-employed (most likely as a sole trader).
The online service comes with lots of explanatory notes, but if you're at all uncertain about the process, or not sure about things like claiming expenses for your business, you can always chicken out and use an accountant...
posted by pipeski at 7:27 AM on April 19, 2017 [1 favorite]
You should already have notified HMRC that you're self-employed (most likely as a sole trader).
The online service comes with lots of explanatory notes, but if you're at all uncertain about the process, or not sure about things like claiming expenses for your business, you can always chicken out and use an accountant...
posted by pipeski at 7:27 AM on April 19, 2017 [1 favorite]
Best answer: You've given pretty much all the information that you need to enter into the form in your question, basically. Once you're registered for self assessment, everything goes into the one self-assessment return, and there's a box for everything and it's all pretty clear. From what I've heard, the HMRC phone support is good, but I've never used it.
posted by ambrosen at 9:49 AM on April 19, 2017
posted by ambrosen at 9:49 AM on April 19, 2017
Best answer: If you use the paper form, there's an additional page you tack on for each instance of employment and self employment and one for renting. If you're online it sorts that out for you. In both cases the forms are amazingly simple (certainly compared with the US variety) and non scary; to give you a measure, the main form is about 30 pages long with big writing and lots of bits you don't have to fill out if you aren't a blind ex sailor who was born before 1930. There are also helpful filling-out notes, some of which include extra bits to help you with any calculations you need to do to get the numbers you need.
You'll also want any bank interest summary statements, which they should have just sent you for last year, or you can usually use phone banking to get the numbers you need.
I suggest you try it as soon as possible and see how you get on. You can always find an accountant if it's too frustrating; I'd be surprised if you need to do that, though. If this is the tax year just ended, you have plenty of time to do all this before you'll be overdue (many months), so take that first step and then you have plenty of time if you need to take the second.
Given the income you describe you likely do have to pay tax, but it won't be very much - maybe 100 quid. That said, you still need to do the form even if you have zero tax to pay, just so that you prove that to them.
posted by How much is that froggie in the window at 1:37 PM on April 19, 2017
You'll also want any bank interest summary statements, which they should have just sent you for last year, or you can usually use phone banking to get the numbers you need.
I suggest you try it as soon as possible and see how you get on. You can always find an accountant if it's too frustrating; I'd be surprised if you need to do that, though. If this is the tax year just ended, you have plenty of time to do all this before you'll be overdue (many months), so take that first step and then you have plenty of time if you need to take the second.
Given the income you describe you likely do have to pay tax, but it won't be very much - maybe 100 quid. That said, you still need to do the form even if you have zero tax to pay, just so that you prove that to them.
posted by How much is that froggie in the window at 1:37 PM on April 19, 2017
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posted by matthewr at 6:46 AM on April 19, 2017 [3 favorites]