In Section 3 of the return ‘tailor your return’ HMRC asks if your self-employed income is more than a £1,00- however you may need to answer yes when your income is a thousand pounds or less for example to pay voluntary class 2 National Insurance – use the help link on that page for further guidance
If you answer yes to you income being above £1,000, you need to tell HMRC about this income.
Start by selecting fill in your return, then enter self-employment details.
Page 1 is about your annual turnover including taxable coronavirus support payments (if applicable)
If your trading income is more than £90,000 you may need to register for VAT by the way!
For the 2023/4 tax year, if your income is less than £90,000, select NO and tick anything on the list that applies to you.
On page 2, tell HMRC the name of your business and what you do – it’s important to let HMRC know if you started or stopped being self-employed during the tax year so enter the dates here.
Add your accounting details on page 3 including the date your accounting year ends: HMRC & Dead Simple Accounting recommend using the 5th of April as it’s the end of the tax year.
Also tell HMRC if you’re using Cash basis – if you’re not sure what this means, use the help link on that page to find out more.
On page 4 enter the figures for your turnover, show any other business income in the next box including coronavirus support payments you can claim the £1,000 trading allowance here but this means you can’t deduct any other expenses.
If you’re not using the trading allowance, show your allowable expenses further down the page.
When your figures are in, your calculations will appear at the bottom of the screen i.e. showing your profit.
Page 5 is for Capital allowances & if you’re using Cash basis you can only claim for business cars.
Page 6 is for adjustments – these include the value of any goods or services for personal use, other business income and any losses brought forward from an earlier year.
Page 7 asks about any losses from the current tax year
Page 8 is for tax deducted – only complete this box if you’re in the construction industry scheme (CIS) and show your contractor deductions.
On page 9 tell HMRC about your class 4 National Insurance contributions.
Use the other information box to tell HMRC about anything else.
At the end you’ll see a summary page so you can check everything, including the tax calculation & your payments on account position.
You can find out more about self-assessment on gov.uk
