Self Assessment questions

Self Assessment questions

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I was wondering if someone can help me, I have recently qualified AAT and I am looking at doing self assessments in my spare time, a family friend asked to talk to me today, they are employed and are doing some beauty theropy work in the evenings under the employment section I would put down the gross salary then under tax deducted do I include just the tax or tax and ni payments on their P60? also they purchased insurance in February 2013 but started self employed in May 13 can this be claimed in 13/14 as a percentage of how many months. I have advised them to call HMRC and say they need to register as self employed so they get a tax form and UTR. My mum is pretty sure they have a property that is being rented out but she didn't say anything to me would this impact my qualification in any way if this isn't declared IE ive declared what they have told me. Thanks in advance :-)

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By ShirleyM
27th Oct 2013 07:49

Checklist

Get your clients to complete, and sign, a checklist of income & reliefs. If they have omitted some income, then at least they were aware that it should have been declared on the SA.

You will need to do a lot of research before starting, as the questions indicate you haven't even the basic skills required for completing SA's. If you are not competent or knowledgeable enough to undertake the work, then it would be advisable to get some experience first.

ps. You are probably aware of this already, but if you are providing tax/accountancy services, then you do need to register for Money Laundering supervision, and need to pay for PII, etc.

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By MDK45
27th Oct 2013 08:03

Are you sure AAT teaches you enough to do self assessments? With all due respect and having sat it myself 20 years ago, its a pretty junior qualification compared to ACCA, ACA, CIMA etc and barely scratches the surface for tax. The fact that AAT issues MIP certificates scares me.

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Scalloway Castle
By scalloway
27th Oct 2013 10:14

What to do

The employment section should show gross income and tax deducted. NI is ignored.

 

As they did not start selfemployment until 13/14 I would include the insurance in that year. Pre trading expenditure is treated as having been incurred on the first day of trading.

 

You must ask them about the property as this will impact their tax bill.

 

The AAT has rules for members providing services on a self employed basis. See this link

http://www.aat.org.uk/about-aat/mip-supporting-information/mip-scheme-re...

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