Sales Accounting for Tax Self-Assessment

[Nathaniel Noir]

Hi all, just a quick question, how do you record the money you get from Alamy for tax-paying purposes? (UK) I’ve been recording every sale so far and calculating on the basis of that, but I wonder if it would be easier to just record the monthly payment received to bank account, if that’s feasible? Any advice greatly appreciated!

 

Many thanks!

[Alexander Hogg]

This thread may help

 

 

[Avpics]

If you're doing yearly self assessment tax like myself then I just do a cash basis return using the year's net bank payments.

[Nathaniel Noir]

33 minutes ago, Alexander Hogg said:

This thread may help

 

 

Thanks for this, that’s helpful. Sounds like it’s perfectly fine to just record the monthly payments

[Nathaniel Noir]

20 minutes ago, Avpics said:

If you're doing yearly self assessment tax like myself then I just do a cash basis return using the year's net bank payments.

Yes, exactly. I’ve been recording individual sales, but it’s occurred to me that this might be completely unnecessary. 

[geogphotos]

I use a simple spreadsheet and just keep a record of all costs and income. 

 

Normally I update it at the end of each month. Then it is very quick and easy to do my tax return. - Turnover and Expenses.

[Avpics]

6 minutes ago, geogphotos said:

Normally I update it at the end of each month. Then it is very quick and easy to do my tax return. - Turnover and Expenses.

I also do the same for everything else, but just select the dates 6 April to 5 April on a search for 'Alamy' on my bank statement and print the results.

[Bryan]

Doing tax returns for my wife and myself, Alamy is the least of my worries, as has been said, just add up the income and legitimate expenditure.

 

For example, why does the inland revenue need me to provide details of our state pensions, don't the different government departments speak to one another ?  Other pension providers supply a P60 itemising everything you need . 

 

In grumpy mood, filing tax returns never a happy experience ! ☹️

[Vincent Lowe]

4 hours ago, Bryan said:

For example, why does the inland revenue need me to provide details of our state pensions, don't the different government departments speak to one another ?  Other pension providers supply a P60 itemising everything you need .

 

Do you fill in your tax returns online?  If you do the state pension amount will be filled in automatically.  At least that's how it works for me.

[Bryan]

7 hours ago, Vincent Lowe said:

 

Do you fill in your tax returns online?  If you do the state pension amount will be filled in automatically.  At least that's how it works for me.

 

I do Vincent, but last year, for the first time, I had to calculate the state pension amount, maybe it's a form of honesty checking, or maybe I pressed the wrong button  ?

[Nick Hatton]

After 50 years of PAYE, I am dreading having to do a tax return in retirement. 

 

[geogphotos]

1 minute ago, Nick Hatton said:

After 50 years of PAYE, I am dreading having to do a tax return in retirement. 

 

 

 

I used to dread it, but that was in the past when I simply chucked everything into a boxfile and then had to spend days making sense of it all.

 

Now virtually everything is online in bank and credit card statements. 

 

If your affairs are reasonable straightforward then it really is nothing to worry about. 

[StokeCreative]

20 minutes ago, Nick Hatton said:

After 50 years of PAYE, I am dreading having to do a tax return in retirement. 

 

me too, although I was freelance for a period in the 1980s. What I dont quite understand is when do you inform the tax office? I haven't reached £1K yet but probably will before April....but I think tax returns go in in January?

Edited November 7 by StokeCreative

[geogphotos]

4 minutes ago, StokeCreative said:

me too, although I was freelance for a period in the 1980s. What I dont quite understand is when do you inform the tax office? I haven't reached £1K yet but probably will before April....but I think tax returns go in in January?

 

No, the end of January 2025 is the deadline for tax returns and payment of tax due from the previous tax year ie) 6th April 2023 to 5th April 2024.

 

That is why accountants are very busy in January each year

 

You can complete the return and pay your tax any time after 6th April but must do so by the end of January or you'll get a fine.

[spacecadet]

9 minutes ago, StokeCreative said:

me too, although I was freelance for a period in the 1980s. What I dont quite understand is when do you inform the tax office? I haven't reached £1K yet but probably will before April....but I think tax returns go in in January?

It sounds as if you haven't registered as self-employed, in which case do it straight away. There's a separate fine simply for failing to do so.

[StokeCreative]

7 minutes ago, spacecadet said:

It sounds as if you haven't registered as self-employed, in which case do it straight away. There's a separate fine simply for failing to do so.

From Gov.uk: You do not need to be registered as self-employed if you earn £1,000 or less in a tax year as a sole trader.

[StokeCreative]

13 minutes ago, geogphotos said:

 

No, the end of January 2025 is the deadline for tax returns and payment of tax due from the previous tax year ie) 6th April 2023 to 5th April 2024.

 

That is why accountants are very busy in January each year

 

You can complete the return and pay your tax any time after 6th April but must do so by the end of January or you'll get a fine.

 

Ah OK of course, Im forgetting its the previous tax year. I didnt exceed £1K in that period

 

[geogphotos]

3 minutes ago, StokeCreative said:

 

Ah OK of course, Im forgetting its the previous tax year. I didnt exceed £1K in that period

 

 

If you exceed £1k in ths tax year you'll need to register. Then you'll have until end of Jan 26 to complete the return and pay up. Obviously it avoids  stress to get the return done in good time so you know what is due and can then pay at your convenience before the deadline.

[spacecadet]

10 minutes ago, StokeCreative said:

From Gov.uk: You do not need to be registered as self-employed if you earn £1,000 or less in a tax year as a sole trader.

My mistake, I've been self-employed for so long I've never had to do it so obviously missed the change.

[StokeCreative]

13 minutes ago, spacecadet said:

My mistake, I've been self-employed for so long I've never had to do it so obviously missed the change.

I think it came in in 2017

[Avpics]

1 hour ago, Nick Hatton said:

After 50 years of PAYE, I am dreading having to do a tax return in retirement. 

 

The online system has been greatly simplified in recent years

[Stokie]

22 hours ago, StokeCreative said:

From Gov.uk: You do not need to be registered as self-employed if you earn £1,000 or less in a tax year as a sole trader.

It might be advantageous to register as self employed in any case as you can claim legitimate expenses against the amount of tax you pay. So you can claim for cameras, lenses etc and 'office' expenses such as computers and printers - even car mileage!

 

It's quite easy to fill in the forms online. I have a spreadsheet of ins and outs. I used to itemise everything but now I just do an income minus expenditure return which is quick and simple.

 

John.

[Vincent Lowe]

35 minutes ago, Stokie said:

It might be advantageous to register as self employed in any case as you can claim legitimate expenses against the amount of tax you pay. So you can claim for cameras, lenses etc and 'office' expenses such as computers and printers - even car mileage!

 

It's quite easy to fill in the forms online. I have a spreadsheet of ins and outs. I used to itemise everything but now I just do an income minus expenditure return which is quick and simple.

 

John.

 

If you work from home, as I'm sure most of us do, you can also claim a proportion of houshold expenses such as heating, council tax etc......

 

https://www.pillowmay.co.uk/self-employed-working-home-expenses-guide/

 

I'm registered as self-employed.  I pay tax on a private pension but usually end up getting a tax refund (just over £700 last year).

 

I can recommend having a niece who's a qualified accountant.  She flatly refuses to charge me more than a hundred quid for doing my accounts, though she gets her money's worth in DIY jobs whenever I visit....😀