Her Majesty's Revenue & Customs (HMRC) are responsible for applying the law in the case of Taxation and there is a great deal of information available on their web site. What we provide here is an outline of the important issues regarding the mandatory returns required

Tax returns today are made relatively simple using technology that HMRC have adopted to allow all of the calculations to be made automatically on-line as the data is entered. You will need to apply to make your return online when you will be given an Identity number. You will be then notified each year by HMRC Form SA316 when it is time for you to make your return online. Do Your Own Accounts recommends that you make your tax returns online and do it yourself to get used to supplying the information that is needed. Help is available from Do Your Own Accounts to ensure that you are able to make the return yourself

The manual Self Assessment procedure allows for a Self Employment section (Form SA103) that can be added to the main Self Assessment Tax Return (Form SA100). This section provides the means of recording all of the relevant Income and Outgoings (the Costs and Expenses) involved in the enterprise during the tax year

In either case, online or manual returns, for an organisation whose Income for the year is less than £30,000 all that need be reported is the total of all income and 'expenses'. (For the sake of monitoring business performance Do Your Own Accounts divides the outgoings into Costs and Expenses). For tax purposes, for those with income less than £30,000, these two figures are added together and called Expenses

For an enterprise having an annual income of more than £30,000 and less than £67,000 the tax return requires a more detailed breakdown of the outgoings and here they too divide the outgoings into Costs and Expenses

Companies with an annual income of £67,000 and greater are required to provide more detail for outgoings and can provide a Balance Sheet to support any capital allowances that may be claimed

See also

Tax Allowances
Tax and the SME
Tax Penalties
Tax Records

Top of the page

Comments and suggestions for improving this site are appreciated and should be addressed to administration

Last Update 08-Jan-2012

Date first published 18-Dec-2005