DMT612 Professional Preparation

PRACTICAL TAX

Practical Tax

Seeing yourself as a business means taking responsibility for all aspects of your career, not least money and financial planning, income, outgoings and taxes.

Register your new business

• https://www.gov.uk/set-up-sole-trader • http://marksimpson.co.uk/sass/

Sample Person UTR: 1234567890BillPay user number: XY1234567

PROFIT & LOSS ACCOUNT 2014-2015

GROSS INCOME £

Main income (Taxed/PAYE) 20,000.00

Secondary income (Freelance/Schedule D) 10,000.00

Other income (Fees etc, untaxed) 5,000.00

0.00

TOTAL GROSS INCOME 35,000.00

TAX PAID

Main 123/1234567 (PAYE Ref #) 1696L (Tax code) 606.20

Other 0.00

TOTAL TAX PAID 606.20

NI PAID

Main 1,445.28

Other 0.00

TOTAL NI PAID 1,445.28

EXPENDITURE

Cost of goods bought for resale or goods used Work clothing 540.93 -

Tools 722.80 1,263.73

(Construction industry - payments to subcontractors) 0.00 0.00

Wages, salaries and other staff costs 0.00 0.00

Car, van and travel expenses Accommodation 280.00 -

Travel inc 30% of Motor costs 768.60 1,048.60

Business premises costs: rent, rates and pow er Use of Home as Off ice @ £2/w eek 104.00 104.00

Repairs and renew als of property and equipment Electrical/IT 573.19 573.19

Telephone, fax, stationery and other off ice costs Computing & printing 750.00 -

Music, books & scripts 348.21 -

Postage & Stationery 5.70 -

Telephone (Business 50%) 425.00 1,528.91

Advertising and business entertainment costs Advertising inc Web Presence 58.74 -

Entertaining 923.03 -

Theatre tickets & tv licence 80.00 1,061.77

Interest on bank and other loans 0.00 0.00

Bank, credit card and other f inancial charges 0.00 0.00

Irrecoverable debts w ritten off 0.00 0.00

Accountancy, legal and other professional fees Inc Professional Medical 401.11 401.11

Depreciation and loss/prof it on sale of assets Devaluation 750.00 750.00

Other business expenses Hair dressing 180.00 -

Professional journals 44.00 -

Subscription (Equity) 72.00 -

Subscription (SMA) 52.00 348.00

Insurance 150.00 150.00

TOTAL EXPENDITURE 7,229.31

PROFIT 27,770.69

NET INTEREST

Savings account November issue 5.00

0.00

TOTAL NET INTEREST 5.00

NET DIVIDENDSTAX CREDIT DIVIDEND

Apple 0.00 0.00

Google 80.42 723.86

Pfizer 6.38 57.42

Other 6.82 61.35

TOTALS 93.62 842.63

https://www.gov.uk/expenses-if-youre-self-employed/overview

Session Links

• https://www.gov.uk/set-up-sole-trader• https://www.gov.uk/expenses-if-youre-self-employed/overview• https://www.gov.uk/income-tax-rates/income-tax-rates• https://www.gov.uk/paye-forms-p45-p60-p11d/p45• https://www.gov.uk/register-for-self-assessment• https://www.gov.uk/apply-national-insurance-number• https://www.gov.uk/tax-on-your-private-pension/overview• https://www.gov.uk/workplacepensions• https://www.gov.uk/tax-come-to-uk

Close

Tax doesn’t have to be taxing, but you do need to get into the habit of keeping records, keeping receipts and keeping your accounts up to date. Do this and it’s far less likely that you’ll go wrong.