Having said that if you are self-employed it will be quicker and easier if you gather together and sort out all the relevant information before you start. Therefore it is important to get your books and records up to date so that you have a clear schedule of your income and expenses and any other income received in the year. Typically you should ask yourself the following:-
Are my books and records up to date.
2. Have I got details of any interest I have received on savings in a UK bank or building society? (except ISA’s)
3. Have I got details of any other income received in the tax year such as benefits, dividends, pensions?
4. Did I sell any shares or property in the tax year? If so you must calculate whether there is any capital gains tax due. In 2010/11 the first 10,100 of any capital gain is exempt.
OK. Now you are ready to begin.
Step one -Are you going to complete a paper return or file online?
Decide if you want to fill in a paper return or complete and file your return online. Filing online has many advantages, including longer deadlines, 24-hour access and instant tax calculations.
As well as using the FREE HMRC filing service you can now also purchase a number of commercial tax return software, at various costs.
Step two -Make sure you complete the right pages
Make sure you have got the right pages. For the self-employed you have a choice of two options.
Self-employment (full)
2. Self-employment (short)
Use the Self-employment (full) pages if:
• Your turnover was 67,000 or more (or would have been if you had traded fo