At FitTax we like to provide advice on how to run your business and do your own tax as well as selling our services.
Here is a quick guide to Self-Assessment and completing your own tax return.
When do I need to register for tax?
It depends…. from HMRC’s perspective you need to register for any year where you know you are earning in excess of £1,000 of self employed sales (so the amount invoiced for classes and PT) – below this you are covered by “Trading income allowance” and wont owe any tax or need to file a return (although in some circumstances you may still want to – such as making a loss you can claim against another income source).
The other situation in which you may need to register is the case in which you start working for a gym which wont use you without you providing your tax number (a number of the big chains insist on this). If you earn less than £1,000 you can still claim Trading Income Allowance (or your actual expenses if this is more beneficial).
How do I register for tax?
Go the HMRC website, register and follow the instructions. My key bit of advice is if you haven’t heard of something you aren’t one of those….
e.g. I have had a lot of people ask me if they are a “share fisherman” and I’m going to be honest that I have never met one and am somewhat unclear as to what they do…….
Here is the link to register and find out more:
When is my tax return due?
When you register for tax your first tax return will be due for the period to the 5th April after you started. So someone who registered for tax on 6th April 2018 will have to file a return for the year to 5th April 2019 the same as someone who started on say 1st January 2019.
You are taxed on all of your income for the tax year so if you are also employed you will need to keep hold of P60s and P11Ds
The tax return is due (and the tax must be paid by 31st January following the end of the tax year so 31st January 2020 for the year ended 5th April 2019 (2018-19).
What goes on my tax return?
It depends on your situation but for those self employed within the fitness industry it will be your self employed income and expenses and your income from employment if applicable. You may have other sources of income such as rental income.
How do I submit my tax return?
Log in with the Government Gateway ID and password that you set up when you registered for tax.
You can also get into this account by verifying your identity via various websites if you lose your login.
Then click to start preparing your tax return and enter the figures you have calculated in advance for your self employment. Enter your employment figures from your P60.
Always check how much tax you have to pay on the calculation before submitting the return and if you need any assistance get in touch with us to arrange a tax return review. It’s not advisable to just pay it and hope it’s right if you really don’t understand it and the figure seems wrong.
We also have some handy tax calculators on our FitTax App available on IOS and Android available to everyone not just clients!