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Self-employment

This screen is found from the data input tab within the tax return. Add a self-employment section for each self-employment.

You can import accounts and some other information from external packages, Xero or VT Final Accounts. Click Import accounts to import accounts data. See importing accounts data from other packages for more information.

This screen contains two tabs:

  • Trade/profession/vocation – to input business and accounting period details, capital allowance summary and loss allocations.
  • Capital allowances – optionally allows the calculation of capital allowances for transfer to the main tab.

Coronavirus Grant Income 

Coronavirus grant income received in the tax year should be included within the business profits. Please ensure that box 20.1 on the SA100 is completed. See Coronavirus Income help page for more information.    

Coronavirus Grant Income Overpaid & Payments on Account for the next year

Any amount of Coronavirus grant income incorrectly claimed is repayable in full to HMRC. Ensure this is entered into the Coronavirus Income data entry. This will be shown in the calculation produced by Taxfiler.   

The grant income overpaid is automatically included in HMRC’s calculation of the payments on account for the following tax year. A claim to reduce the payments on account can be made. Click here for more information.      

Recording and reporting of SEISS grant income 

SEISS grant payments received must be included in the accounts prepared for a sole trader where accounts are being prepared in addition to the tax return completion. As SEISS is taxable on a receipt’s basis, any SEISS received after the accounting period has ended but before the end of the tax year must also be included in the tax return for the tax year in addition to the income declared through the accounts.

Sole Trader Accounts 

  • Include the amount of SEISS grant income received in the accounting period in Other income in the trial balance. 

Tax Return 

After importing the accounts into the tax return make the following adjustments: 

  • Remove any income relating to SEISS payments received from the ‘Any other business income’ field in the data input. 
  • Include all SEISS payments received in the ‘Self Employment Income Support Scheme grant’ field in the data input including any additional payments received after the accounting period end but before the end of the tax year. 
  • If a balance sheet has been prepared in the supporting Accounts then the balance in the Tax return will not match the accounts. There will be a difference in the net profit or loss. As per HMRC advice enter the amount of SEISS payments received into the ‘Capital introduced’ field.  

Business details

  • ‘Business name‘ Enter the name of the business.
  • ‘Business description’ Enter a description of the business activity.
  • ‘Business address (unless working from home)‘ Click Change address to enter an address for the business.
  • ‘Name/address details changed in last 12 months?’ If the name or address of the business has changed since last year, tick the box.
  • ‘Date business started‘ Enter the date that the business started. Taxfiler will only include this date on the tax return if it is in the current year but you can enter the original start date for memo purposes if you find it useful.
  • ‘Date business ceased’ Enter the cessation date of the business. If this date falls within the year then Taxfiler will include it on the tax return and will stop this self-employment from being rolled forward to the following year’s tax return.
  • ‘Using cash basis?‘ If this business is using the cash basis, tick the box. For more information on the cash basis, see HMRC Helpsheet 222.
  • ‘Use the short self-employment form for this business?‘ If this box is ticked then Taxfiler will use the short form for this self-employment. If it is not ticked then Taxfiler will produce the full self-employment form.

NOTE: You should not use the short form in the following circumstances:

  • Overlap relief is being claimed
  • The accounting date has changed
  • The basis period is different from the accounting date
  • When there is an accounting adjustment (e.g. a switch from cash basis to accruals basis)
  • When there is an averaging claim
  • When there are adjustments to profits chargeable to Class 4 NICs.

Accounting period

  • ‘Start of accounting period’ Enter the start of the period for which accounts are being entered.
  • ‘End of accounting period‘ Enter the end of the period for which accounts are being entered.
  • ‘Permanent change of accounting date?‘ Tick the box if there has been a change of accounting date for tax purposes.
  • ‘Accounting date changed more than once?’ If the accounting date has changed more than once in the last 6 years, tick the box.
  • ‘Do special arrangements apply? (Foster carers, averaging etc.)‘ Tick the box if any special arrangements apply to this self-employment

Special arrangements may apply to:

  • Foster carers and shared lives carers – see HMRC Helpsheet 236
  • Farmers and market gardeners, and creators of literary or artistic works who are claiming averaging – see HMRC Helpsheet 224 , Helpsheet 232 and Helpsheet 234
  • Barristers (or advocates in Scotland) – who commenced before the tax year and compute profits using the alternative basis. There is information on this in the guidance notes issued by the Bar Council of England and Wales, the Faculty of Advocates and the Northern Ireland Bar Library.
  • Trades and professions wholly carried on abroad – if the remittance basis applies to the whole trade (and the Residence, remittance basis etc. pages have been completed) then only taxable profits and basis periods need to be entered.
  • ‘Profit details provided on last year’s tax return?’ If accounts were provided on last year’s return then tick this box – only the total profits and basis period need to be entered for this year.

Business income

  • ‘Turnover’ (do not include SEISS grant) – enter the turnover for the tax year excluding any SEISS payments received. Note: SEISS is lonly relvant in tax years 2020/21 and 2021/22.
  • ‘Any other business income‘ (include CJRS and other COVID payments but not SEISS) – enter other income not included in turnover (including Coronavirus Job Retention Scheme payments)‘ but DO NOT include SEISS.

Trading Income Allowance (up to £ 1 000)

No trading allowance has been claimed for any other trades

  • ‘Claim relief against trading income’ Tick the box if you wish to claim £ 1 000 against trading income

Expenses

  • ‘Cost of goods bought for resale or goods used‘ Enter the cost of sales in the accounts, and the sum of any amounts disallowed.
  • ‘Construction industry – payments to subcontractors’ Enter any CIS payments and the sum of any amounts disallowed.
  • ‘Wages, salaries and other staff costs’ Enter staff costs and the sum of any amounts disallowed.
  • ‘Car, van and travel expenses’ Enter motor and travel expenses, and the sum of any amounts disallowed.
  • ‘Rent, rates, power and insurance costs‘ Enter premises costs, and the sum of any amounts disallowed.
  • ‘Repairs and maintenance of property and equipment‘ Enter maintenance costs, and the sum of any amounts disallowed.
  • ‘Phone, fax, stationery and other office costs’ Enter office costs, and the sum of any amounts disallowed.
  • ‘Advertising and business entertainment costs’ Enter advertising and business entertainment costs, and the sum of any amounts disallowed.
  • ‘Interest on bank and other loans‘ Enter interest costs, and the sum of any amounts disallowed.
  • ‘Bank, credit card and other financial charges‘ Enter finance charges, and the sum of any amounts disallowed.
  • ‘Irrecoverable debts written off’ Enter bad debts, and the sum of any amounts disallowed.
  • ‘Accountancy, legal and other professional fees’ Enter fees per accounts, and the sum of any amounts disallowed.
  • ‘Depreciation and loss/profit on sale of assets‘ Enter the depreciation and any losses on sale of assets, and the sum of any amounts disallowed.
  • ‘Other business expense’ Enter all other business expenses, and the sum of any amounts disallowed.
  • ‘Total expenses‘ Taxfiler displays the total of the expenses and disallowed amounts.

Net profit or loss

  • ‘Net profit/(loss) per accounts’ The computed profit or loss per the accounts will be displayed.

Capital allowances and non-taxable items

You may choose to enter Capital allowance figures directly into these boxes or you can use the Capital allowances calculators that are available on the Capital Allowances tab.

  • ‘Change the calculated figures?’ Tick this box if you have used the Capital allowances tab to calculate the capital allowances and you wish to manually amend the calculated figures displayed here. When ticked the capital allowance summary fields become editable. When you remove the tick the fields will revert to the values calculated by the system from the capital allowances tab.
  • ‘Annual Investment Allowance‘ Enter the AIA claimed in the period. This field may be read-only if the capital allowances tab has been used.
  • ‘Small pool balance‘ Enter any small pool writing down allowance that has been claimed. This field may be read-only if the capital allowances tab has been used.
  • ‘Capital allowances at 18% on equipment’ Enter any capital allowances calculated at the standard rate of 18% (20% for years prior to 2013). This field may be read-only if the capital allowances tab has been used.
  • ‘Capital allowances at 8% on equipment’ Enter any capital allowances calculated at the special rate of 8% (10% for years prior to 2013). This field may be read-only if the capital allowances tab has been used.
  • ‘Zero-emission goods vehicles allowance’ This field may be read-only if the capital allowances tab has been used.
  • Zero-emission car allowances’ This field may be read-only if the capital allowances tab has been used. (added from 2022)
  • ‘Structures and Buildings allowance’ This field may be read-only if the capital allowances tab has been used. (added from 2022)
  • ‘Freeport Structures and Buildings allowance’ This field may be read-only if the capital allowances tab has been used. This allowance applies on structures and buildings located within new Freeport Tax sites. The allowance applies from the point thecsite is designated a Freeport site. The first sites were designated in November 2021 and therefore the allowance will only apply with effect from 1/11/2021.  (added from 2022)
  • ‘Electric charge point allowance’ This field may be read-only if the capital allowances tab has been used. (added from 2022)
  • ‘100% and other enhanced capital allowances’ Enter all FYA & other enhanced capital allowances in this field. This field may be read-only if the capital allowances tab has been used.
  • ‘Allowances on sale or cessation of business use‘ Enter any balancing allowances due. This field may be read-only if the capital allowances tab has been used.
  • ‘Total capital allowances‘ This field will show the total of all the capital allowances entered.
  • ‘Income, receipts and other profits not taxable’ Enter any income or other receipts that have been included in the turnover or other income figures but which are not taxable.

Add: Balancing charges and Goods for own use

  • ‘Balancing charge on disposals‘ Enter any other balancing charges. This field may be read-only if the capital allowances tab has been used.
  • ‘Goods and services for your own use‘ Enter the value of any goods and services that have been taken for personal use.

Calculate net profit for tax purposes

  • ‘Total additions’ This field shows the sum of all the additions to profit that have been entered.
  • ‘Total deductions’ This field shows the sum of all the deductions from profit that have been entered.
  • ‘Net business profit/(loss) for tax purposes‘ This field shows the net business profit/(loss) for tax purposes for the accounting period.

Adjustments

  • ‘Date basis period began’ Enter the start date of the basis period.
  • ‘Date basis period ended’ Enter the end date of the basis period.
  • ‘Adjustment to arrive at profit for the basis period‘ Enter the adjustment required to the accounting period profit to arrive at the basis period profit. This figure may be positive or negative. Where the accounting period and the basis period are the same this field should be left blank.
  • ‘Overlap profits brought forward’ Enter any overlap profits that have been brought forward from the previous year. This field may have been populated automatically when rolling forward the tax year.
  • ‘Overlap profits arising this year’ Enter any overlap profits that have arisen this year.
  • ‘Overlap relief used this year’ Enter the amount of overlap relief being used this year to reduce taxable profits.
  • ‘Overlap profit carried forward’ This field will show the overlap profit to carry forward to the next period.
  • ‘Self-Employment Income Support Scheme grant’ (SEISS) (received within the tax year) (within 2020/21 and 2021/22 tax years). Enter amounts received in respect of this Coronavirus support grant received. The amount to enter should be the amount received in the tax year which may be different to the amount in the sole trader accounts if the period is not aligned with the tax year. 
  • ‘Adjustment for change of accounting practice‘ For barristers who are moving from the alternative basis to normal accounting rules, enter the adjustment instalment for this tax year.
  • ‘Averaging adjustment’ For farmers, market gardeners and creators of literary or artistic works, enter the amount of any adjustment for averaging. This figure can be positive or negative. You can click ‘Averaging calc…’ to open a popup which will help you with this calculation. See the help page for the averaging calculator.
  • ‘Adjusted profit’ This field will show the adjusted profit or loss for tax purposes, before taking into account any losses brought forward.

Losses, other income and deductions

  • ‘Loss brought forward from earlier years’ Enter the amount of loss brought forward from earlier years. This field may have been populated automatically when rolling forward the tax year.
  • ‘Loss brought forward set off against this year’s profits‘ This field will show the amount of loss that is being used to reduce this year’s profit. Losses brought forward must be used to offset losses in the earliest year possible. This figure is not editable and will be the lower of the adjusted profit and the losses brought forward.
  • ‘Any other business income (e.g. non arm’s length reverse premiums)’ Enter any other business income that does not appear in the accounts but which is taxable.
  • ‘Disguised remuneration additions to profits’ (This box has been removed from the Self Employment pages for 2021/22 tax year onwards). 
  • ‘Total taxable profits’ This field will show the total taxable profits for the year. If the business has made a loss this field will be zero.
  • ‘Allowable loss’ This field will show any allowable loss for the year.
  • ‘Loss set off against other income‘ If there is an allowable loss, enter the amount that is to be set against other income. From 2013-14 there is a limit on the amount of Income Tax relief that an individual may claim for deduction from their total income in a tax year. See HMRC Helpsheet 204 .
  • ‘Loss carried back‘ Enter the amount of loss to be carried back to earlier years.
  • ‘Loss carried forward’ This field will show the losses that will be carried forward to the following tax year.
  • ‘CIS deductions on payments from contractors‘ For sub-contractors in the construction industry, input the CIS deductions that have been withheld.
  • ‘Other tax taken off trading income’ Enter the amount of any other tax that has been taken off trading income.

Balance sheet

If the balance sheet entries are left blank then no balance sheet will be included on the tax return.

  • ‘Equipment, machinery and vehicle‘ Enter the value of plant & equipment etc.
  • ‘Other fixed assets‘ Enter the value of any other fixed assets.
  • ‘Stock and work in progress‘ Enter the value of stock and any work in progress.
  • ‘Trade debtors’ Enter the total owed.
  • ‘Bank/building society balances’ Enter the total cash at bank.
  • ‘Cash in hand’ Enter the total cash in hand.
  • ‘Other current assets and prepayments’ Enter the value of all other current assets, including prepayments.
  • ‘Total assets‘ This field will show the total assets.
  • ‘Trade creditors‘ Enter the total for trade creditors.
  • ‘Loans and overdrafts’ Enter the value of any loans or overdrafts.
  • ‘Other liabilities and accruals’ Enter any other liabilities including accruals.
  • ‘Net business assets‘ This field will show the net assets minus liabilities.
  • ‘Balance at start of period’ The balance at the start of the period. This field may have already been populated from the previous year.
  • ‘Net profit or loss’ This field will show the net profit or loss from the accounts entered.
  • ‘Capital introduced’ Enter the value of any capital introduced into the business. Please note that where Sole Trader accounts have been prepared and included SEISS received and appropriate adjustments made to ‘Any other business income’ to exclude SEISS, the Net profit or loss will be different from that shown in the accounts. Add SEISS payments received into here so that the balance sheet balances. This advice has been passed down from HMRC.    
  • ‘Drawings’ Enter the value of any drawings from the business.
  • ‘Balance at end of period’ This field will show the balance at the end of the accounting period.

Additional text note for Tax Return

Enter any additional information you wish to appear in the whitespace of the tax return.