Tax Return made easy

So Christmas is over and you might have some spare time to get your tax return completed before the end of Jan panic. Here is a useful guide to help you on your way.

flowchart

And if that isn’t clear enough here is some more information:

Tax return expenses

Make sure you keep all your business related receipts in one place and regularly input them into MyCake so you don’t have to have an RSI inducing 2 day marathon at this time of year.

Remember to use the ‘repeat purchase’ functionality so that regular payments such as your rent, website hosting, memberships are automatically inputed each month or quarter.

To input an expense

If you are not sure how to do this, check out this blog post:
mycake.org/organise-expenses-mycake/

Allowable expenses

If you are unclear on what you can expense in terms of your tax return, this is a very comprehensive guide:
www.smallbusinesspro.co.uk/tax/allowable-expenses.html

Simplified expenses

But to keep it simple you might want to use the simplified expenses scheme (for example you can claim a flat rate per month for working from home related to your hours instead of charging percentage of all your bills and rent/morgage)
www.gov.uk/simpler-income-tax-simplified-expenses/overview

Customer and Invoices

Here is a useful screencast by Marion on how to set up customers and invoices on MyCake:

http://www.screencast.com/t/YGAVH0tz7

(this does show the old version of MyCake, so if you are a new users don’t worry, it is all the same functionality but just in slightly different places, we will update this soon for you).

If you have used MyCake to invoice all your customers throughout the year, then you have nothing extra to do to do your tax return, all the information needed for your tax return will be in your system.

Doing your tax return online

If you are new to filling in a tax return, I suggest you get cracking straight away. Its not complicated, but the first time you do it, it can take a while to read all the rules and guidelines on the HMRC website. You don’t want to be doing it in a rush at the end of January and if you miss the 30th Jan deadline you will get an automatic fine.

The HMRC website has a series of webinars available in early Jan to show you how to register for Self Assessment Online and complete your tax return. Book one now:
www.gov.uk/government/news/webinars-and-videos-about-self-assessment

Or just open up the forms and the guideline pdf www.gov.uk/…/sa150-notes_2016.pdf and start.

Year End complications

If you’ve been using MyCake for more than one year of accounts you might have run a ‘year end process’. Note that if you’ve run this for say 2015-2016 your self-assessment report may appear empty of data. The reason you run a year end is to tidy up the system once you’re done and dusted with a year. So a) don’t run it ’til you’re finished and b) if you need to go back to an older year delete the year end process for that year if you want to run e.g. a P&L or self-assessment report. To access the year end journal entry you will need to:

  • go into settings and find ‘advanced setttings’ at the bottom of the page
  • enable ‘journal’ and update
  • this will give you a new heading called ‘journal’ in the tabs at the top, click on this
  • you will then see a list of journal entries, highlight the year end journal entry that you want to delete, then select the delete option!

You can always redo the year end … you’ll see that it doesn’t actually change the transaction data that you’ve entered elsewhere.

And remember, to receive Free Support to get you started
Contact us at support@mycake.org

One thought on “Tax Return made easy

  1. Thanks for sharing the procedure of removing tax easily in a very short period of time by writing an application with the valid documents of income tax ,if you want to remove this kind of tax then the solution for to to understand the working of tax return process are mentioned in the form of flowchart in a great article.

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