I'm a self-employed person running a small business. I have two questions:
1. As my Self Assessment for the year 2018 - 2019 year was paid on 31st January 2020 does this mean I can claim this self assessment payment (or some of it) as an expense for my 2019 - 2020 accounts? If so would the whole self assessment payment be an expense or just the elememt that was a payment on account for 2019 - 2020? As there are only 5 days left of this tax year left im just trying to roughly calculate what I will more or less owe in self assessment for when this tax year ends (2019 - 2020) but in order to do so I need to find out the answer to my question.
2. If I do my 2019 - 2020 accounts in early April (as soon as this tax year ends), if my profit is less than last year can an accountant request on my behalf for the amount I will pay in July 2020 (based on half of last years self assessment) to be reduced or even written off altogether? If so, is this standard practice? Or is such a request only applicable in situations where last years tax bill is dramatically different to this years?
Any advice and guidance would be gladly received.
For your info:
- being self-employed is my only form of income
- I am running the business under my personal name (not through a company)
- I am not VAT registered