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View Full Version : Been on a tax course - updated info!



Fi Wilson
19-02-2010, 03:55 PM
Hi,
Just thought I'd pass on some useful information from the HMRC (free!) tax course that I attended this morning which is further to Nicci's really useful tax info post (http://www.cooksongold.com/forum/business-marketing-jewellery-industry/446-self-employment-business-expenses.html) from last year.

When to register as self-employed - the rules changed at the beginning of April 2009 (ie, 09/10 tax year) in that previously you needed to register within 3 months of starting to trade otherwise you would be fined. This has now changed as it was seen to be unfair and possibly in breach of the law (!). So, from April 2009 you are able to register as self-employed if you start to operate as a business within the period from the beginning of a tax year to it's subsequent online self-assessment submission deadline at the end of January. For example, if you decide that you started to trade on 1 August 2009 (09/10 tax year), by the new rules you have until 31 January 2011 to register with HMRC.

Closure of local tax offices - the tutor informed us that the local tax office are being closed down and resources will be moved to regional enquiry centres. Not sure if this is better for us or better for them (probably the latter).

Pension - there are going to be changes to when someone is entitled to received full state pension after paying NI contributions. Currently, men have to contribute for 44 years (I think!) and women for 39 years. This is going to change so that both men and women will only have to contribute for 30 years. The tutor seemed a little sketchy so please check with the Pension Office. You can also obtain a Retirement Pension Forecast (a BR19) which can provide useful information regarding your contributions so far.

One thing that I didn't realise is that our tools are classed as Capital Allowances and there is a whole different way of accounting for these in your tax return. The two main schemes are the Annual Investment Allowance (AIA) and Standard Capital Allowances. Unfortnately I lost my way in this bit as there was a guy who kept querying the tutor related to how he should account for his van and expenses, however, as I was the only jewellery type there I thought it better to keep my mouth shut and look it up for myself.

Can't recommend these courses highly enough, especially as they are free. I'm waiting to hear about when the self-assessment course is going to be but I'll feedback when I've been on it.

Fi