How to file tax return for 2021 22
How I fill in a UK tax return for the 2021/22 tax year
Timecodes:
hiya folks welcome back to the small
business toolbox and welcome to the new
studio it's finally finished I'm not
going to ramble on about it if you want
to know more about the build of this
studio then head over to my gosh with
handyman Channel link down in the
description below but I thought what
better way to get up and running to
celebrate this moment in time where we
have this new space to record in what
better thing to do than to have a tax
return video and let's have a look at
what's involved in filling in a UK tax
return in 2022 stroke 2023 I'm going to
be doing it based on the
2021 or 2022 tax year so that's a tax
year that ends 5th of April 2022 and I'm
just going to run you through the most
basic self-employed tax return ever
based on just one self-employed business
no other sources of income at all we're
going to assume that you've made thirty
thousand pounds turn over you've had 10
000 pounds of expenses so you've made
twenty thousand pound profit as per
usual please don't rely on some random
bloke on the internet I am not an
accountant and I am not in any way
qualified to give you accountancy advice
or financial advice this is just kind of
my view of the world based on my
experiences of running businesses for
well over 25 years now the main
objective of this channel is to kind of
teach you the groundwork that in my view
you should have been taught in school
and that way hopefully you understand
enough of the basics so that when you do
come to run your own business and you do
need an accountant you know what sort of
questions you need to ask them with all
of that in mind let's head over the
computer and have a look at what tax
returns look like these days so we're
going to fly through this as quickly as
we possibly can because it's so boring I
have come to the URL gov dot UK slash
self assessment tax returns with hyphens
in between everything I'm sure you can
find it through other memes on the
government Gateway thing on the
government website anyway if you come to
that and then over on the right we've
got file your self-assessment tax return
online and then scroll down a bit and
you get the start now button that is the
bit that you need to start now that
takes us to the government Gateway Login
so you need to have already sorted a
sign into the government Gateway so make
sure you've done that so put your
credentials in and then do the whole
two-factor authentication access code
thing although it's been a bit mental
recently Monday morning here and several
times it came up with this
then eventually once you've logged in
and dismissed all of the annoying cookie
warnings just scroll down and click on
self-assessment and then just double
check the deadline for online returns
for this one is 31st of January 2023 so
make sure that you are doing the correct
tax return then just click the complete
your tax return link again double check
we're completing it for the correct year
this is a 2021-22 tax year which is due
January 2023. scroll down and hit the
start now button first page it said tell
us about you section it's all personal
details just make sure it's all correct
and scroll down to the bottom
obviously read through all this stuff
and check it's correct but I'm just
putting no for everything and then we're
going to tailor our returns so this is
where we're going to kind of add and
remove sections from a tax return
depending on your personal circumstances
I'm Gonna Keep it really simple and
we're going to kind of imagine that
we've only had a self-employed business
and nothing else so were you an employee
no I wasn't was turnover more than a
thousand pounds yes we'll see it was how
many self-employed businesses will just
save one we'll just call it the usual
Andy Mac drums uh were you in a
partnership no we're just going to say
no to all of these to keep it simple
save again tailoring this section we're
going to keep it really simple no no no
obviously you make sure this is correct
for yourself save and continue pensions
nope charity nope this is the one bit
that you're probably gonna have to watch
out for here do you want to transfer 10
of your personal allowance to your
spouse or civil partner it depends on
your individual tax circumstances to
keep it simple I'm going to say no but
this is a thing that you might want to
do yes on everything else we're keeping
simple
we're getting some nice spam for a money
helper website that's brilliant and now
you can see all of the sections to the
tax return here so if you had multiple
self-employments multiple businesses it
would all be listed here if you'd added
them in the previous Pages if you've
been employed and self-employed then you
would see that in here as well if you
added it in the previous sections if you
find that the stuff in here that's
missing then you need to go back and add
it in the previous sections and to do
that you just go back to Taylor your
return on the right hand side and add to
sections that you need but as I say I'm
keeping it as simple as wouldn't
possibly have it just one
self-employment oh and by the way if you
get completely stuck and you've made a
complete mess of your whole tax return
this is a bit where you would do delete
your entire tax return you click on that
and then you can just start afresh so
we'll click on self-employed details
here did you have an annual turnover of
85 000 or more we're going to say no
again read through all of the stuff but
to keep it simple I'm gonna say none of
these apply save and continue very brief
description of the business so for this
I'm just going to say drum teacher
put the business postcode in if you want
has the business name changed no did the
business start after 5th of April 21 no
did your business cease trading no save
and continue date your books are made up
too so this is the end of your tax year
so generally that is going to be the 5th
of April and because this is the 2122
tax year it's going to be oh five or
four twenty twenty two you can run your
tax year over whatever you want but
generally speaking life is much easier
if you've run it to match up with hmrc's
tax year which is from the 6th of April
to the following 5th of April did you
use cash basis we are going to say yes
to that but again you might be using
accruals basis for your accounts and
I've made a whole separate video about
that not going into it on here it's
something you need to speak to your
accountant about but for now we're going
to say yes to cash basis save and
continue then income for your business
and and the first figure that we need to
put in of course is turnover I've made a
video All About turnover if you're not
sure what turnover means then I'll
include a link down in the description
below it's the total amount of money
your business has made before taking off
any expenses or running costs or
anything like that do read all of the
help that comes with this as well in
every section so you know what's going
on any other business income we're just
going to put zero trading allowance I'm
gonna put zero in this because we are
going to claim expenses later on but do
have a read through this and see if it's
applicable for your business but for me
I'm gonna just put this as zero and then
how would you like to record your
expenses and it's much easier if you
just do it as a single total figure you
can do a detailed breakdown if you want
sometimes that can be quite handy if you
want to have a kind of set of accounts
at the end of it that you might pass on
to I don't know a mortgage provider or
something like that to be honest
don't know if that would be sufficient
for a mortgage provider anyway but if
you do want your submission to hmrc to
be a little bit more detailed for
whatever reason you can do the detailed
breakdown there but generally speaking
you're going to do it as a single value
and in this example we're going to say
that we've had 10 000 pounds worth of
expenses and that is the sum total of
all expenses related to your business so
all of you receipts added up any mileage
that you're claiming if you're claiming
mileage at 45 Pence a mile or however
you're going to be doing mileage if
you're running a vehicle through the
business the 45 Pence a mile route is
generally the easiest way of doing it
but again it's something you should
really talk to your accountant about if
we just click out of that box we can see
that the net profit now shows as 20 000
that's updated itself and will do save
and continue right we've got an error
why have we got an error it's because
this is very typical for hmrc where
sometimes times it wants you to put a
zero in the box and sometimes it wants a
box left completely blank so I'm just
going to delete those out and hopefully
that'll fix that problem save and
continue There we go couple allowances
and balancing charges we're going to say
there's no Capital allowances we've just
kind of grouped everything into the
expenses because we can do that on the
cash basis once again do read through
everything that's in all the help that's
provided because it's quite easy to read
to be honest most of this is relatively
easy to understand and it gives you
examples and things as well but as I say
in this example we're going to assume
we've grouped everything into the
expenses that we've already put in so
scroll down to the bottom save and
continue is it going to complain that we
left any blank no it seems happy goods
and services through your own use again
we're going to bypass all of that income
support scheme none of that loss brought
forward from previous Years nope we're
not doing that any business income not
already include included nope save and
continue losses for the business again
one got any losses so we're not going to
go into that but if you do have business
losses look into this I would suggest
you speak to your accountant it can be
very useful if you have made a loss and
you can carry it forward to Future
profitable years this is why you would
do that sort of thing but again far too
in-depth for this and it's definitely
something you need to speak to your
accountant about save and continue tax
deducted from the business this is uh
the sys scheme CIS scheme unless you're
a contractor of some description like a
tradesperson in the construction
industry then this is not applicable so
just ignore that save and continue then
we'll get a few questions about pensions
and National Insurance we're just going
to say no to all of those to keep it
simple any other information nope double
check everything on this looks correct
so we've got a total taxable profit of
twenty thousand pounds and save and
continue then we're on the class 2
National Insurance if your profits are
over 6 6515 pound you must pay Class 2
next well our profits are over that
we're going to scroll down to the bottom
it says do you want to pay Class 2 nicks
voluntarily I'm gonna say No it should
charge us anyway automatically because
we're above the 6515 pounds if your
profit is lower than that you might
still want to pay the class 2 Nick so
that you get a full year for pension
purposes so again that's something you
need to look into yourself are generally
speaking you do want to make sure you've
got as many qualifying years as possible
and it's only what is it it's like 150
quid a year or something like that so
it's worth doing just to make sure
you've got a full pension year but for
this I'm going to say no because it
should automatically charge us Class 2
Nix we'll do save and continue underpaid
tax included in the paye coding we're
just going to ignore that for now oh
sorry here this is the one where you've
got to put a zero in and zero otherwise
it'll come up with an error and again on
this one as well underpaid tax in the
pay coding page two of two read through
this if it's applicable to you I'm just
going to put zero
other debt again please enter zero if
there's nothing we're just gonna do Zero
Save over paid tax this is where if
you've paid too much tax it's going to
ask you where you want that tax paid
back to again have a read through this
I'm just going to put no on that for now
and again no here just we don't want the
tax code changing and stuff but again if
that's applicable to you then click yes
that's completely up to yourself save
and continue do you need to make any
adjustments we're going to assume no
we'll do save and yes that's fine any
other information nope save do you want
to attach anything nope save double
check you return go through everything
here and just check that you've not made
any mistakes here you can see we've done
pretty much everything all the class 2
nicks everything about overpaid tax
normally asks for your bank details at
some point one got to that bit yet we'll
do next to view the calculator relation
total amount of tax due so
2424.88 and they're wanting a payment on
account for next year as well because
we're over the threshold for payment on
account so you're going to be lumbered
with a tax bill of 3637 pounds and 32
Pence this is a bit that is worth
printing out and if you go down a little
bit on here don't print this bit out
scroll down and go to view and print
your full calculation because you get a
bit of extra information so just click
that so here's a full breakdown here
profit from self-employment minus your
personal allowance means that you're
going to have to pay tax on
7430 pounds you can be paying that at 20
which works out at
1486 pounds tax then we've got class 4
National Insurance here 9 of 10 432
pounds which is 938 pounds and 88 Pence
and this is because the National
Insurance threshold is different to your
personal allowance threshold again made
a video all about that before linked
down in the description so that means
your tax bill is that amount plus
National Insurance so your tax bill is
those two numbers added together which
is your 2424 pounds and 88 Pence then
plus your payment on account as well and
then that's what brings it to the total
tax due for this tax year if
3637 pounds and 32 Pence now
interestingly this hasn't included
taking off the class 2 National
Insurance I'm assuming that's going to
be taken off automatically at some stage
in the future after you've submitted
your return it should do if you want to
be on the safe side go back a couple of
stages and click yes to the National
Insurance Class 2 amount but I'm pretty
confident that it's going to come off at
a later stage anyway because it should
do you're past the threshold it should
ultimately just charge you that I don't
know why it doesn't show it on here
anyway print your full calculation
that's generally the easiest way of
doing it so this is the full calculation
click print and then that gives you a
nice printable tax calculation for your
records that you can save to a PDF or
you can physically print it out whatever
you prefer so assuming everything is
correct we'll do save and continue are
you claiming to reduce your payment on
account so this is where if you
shouldn't be paying a payment on account
then this is where you would deduct it
so say for example the following tax
year you had shut the business down or
you made no profit whatsoever so you
know you're not going to have to pay any
tax for the next tax year this is where
you would add that in you would say yes
and you have to give a bit of
justification for it we're just going to
keep it as null and save and then
finally you can view the full copy of
your tax return you just do the view PDF
there definitely view it and save it off
whatever you do keep this in a safe
place because this is your main in
master record of what you have submitted
to hmrc so don't lose this because if
there is any problems later down the
line you need to have this for reference
then do save and continue read through
all the information on here tick the
boxes and click submit and that is your
tax return done one thing we didn't get
to on here was putting our bank details
in which I'm not entirely sure why
that's normally asked earlier on in the
return let me just have a bit of a dig
around and see if I can work out where
that's gone
it might be because we're not owed any
tax unless they've changed it no I can't
find it
um I can only assume it's because we're
not owed any tax but um while I'm here
I'm gonna try changing this to uh paying
the voluntary Class 2 next because we're
going to have to pay it anyway so we're
just gonna do save and continue and and
it's come up with an array your profits
are the same or above the small profit
threshold all right okay hold on let's
actually just read what it's saying here
rather than just randomly clicking
buttons uh okay at a glance I'm not
seeing it in there let's just scroll up
the top bottom so if you click on this
no it just takes us back down to here
well I'm just gonna have to change this
to no it won't let me move on otherwise
so uh I think it's just because we've
got to pay Class 2 and I it's it's not
an option because we're above the
threshold I don't know why it even gives
you that option it's a lot of weird
things like that in your tax return but
yeah you kind of get used to that but
yeah goodness knows where Bank details
have gone
presumably they've already got them and
maybe it's something that comes up if
you owed money back or maybe it's
somewhere else on the hmrc system I'm
not entirely sure pop in the comments
below because yeah I haven't claimed a
refund from hmrc for a while so folks I
hope you found that useful it's the
first video to get back up and running
in this space that we've got now the
recording makes such a massive
difference having a space kind of ready
set up the next video is going to be
about filling in a tax return if you're
a company director so don't forget to
hit subscribe because hopefully that'll
be useful for a lot of you out there who
follow this channel as I've said many
times before if you are setting up in
business you do need to get yourself a
good accountant they are worth their
weight in gold and they will generally
save you more than they will cost you in
the long run in the meantime if you've
got any questions or anything like that
fire it down in the comments below if
you are an accountant and you want to
help out in the comments below feel free
to respond to some of the questions as
well for now as per you shall take care
folks and we shall see you next time
turkey bye
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