Are you self-employed and need help understanding your tax affairs? The updated LITRG guide can help!
Last year, LITRG published a guide to self-employment to provide additional material for self-employed individuals and voluntary sector advisers who help the low-income self-employed. The guide has proved popular, being downloaded over 85,000 times by LITRG website users and has received positive feedback.
As the tax and tax-related benefits systems are ever-changing, we have updated the guide, called Self-employment – A LITRG guide, to help when completing 2019/20 Self Assessment tax returns as well as explaining what tax issues you need to consider when starting a new self-employed business or partnership or if you decide to cease trading.
Because of the coronavirus (COVID 19) outbreak there have been temporary changes to some of the rules for tax, tax credits and universal credit. The updated guide highlights areas where the ‘usual’ rules may have been temporarily changed and signposts to the LITRG website’s coronavirus pages for detailed guidance.
Following last year’s format, the guide explains some of the less common tax rules affecting the self-employed and includes an in-depth case study showing how to prepare accounts and what to include on the 2019/20 Self Assessment tax return. It also includes a glossary explaining key accounting and tax terms.
The guide is intended to help the self-employed and/or their advisers understand the complex tax and benefit rules, which can vary significantly for different businesses. You may need to consider whether there are special rules for your business sector, if you are claiming all the tax reliefs you are entitled to and, in some cases, whether it is beneficial to do so.
Our guide explains how self-employed income is assessed for certain state benefits and outlines the differences between the tax, tax credits and universal credit systems when it comes to the self-employed.
The guide also discusses areas such as growing a business, taking on staff and registering for VAT and Making Tax Digital for VAT.
Contact: Claire Thackaberry (click here to Contact Us)
(First published: 15/07/20)