Does anyone here with a background in accountancy or book keeping know the answer to this lot? It's a length explanation, and fairly simple questions hopefully.
I'm currently employed and running a business on the side. The business is actually a partnership between myself and a friend. We are both employed in full time jobs and paying tax through PAYE. There is no conflict between the business on the side and my normal work, it's purely a means of earning cash in my spare time.
The business has a joint business account which any payments we receive go into. The business is NOT limited and NOT vat registered. (No need for the amounts we make)
We've been going since mid 2005 and have earned around £7000 between us. We have not yet submitted any paperwork to the tax office or paid any tax (although we still have the money in the business account to do it)
We've got records of all invoices we've raised and the payments for said invoices have gone into the bank. There's only about 11 invoices in total so it isn't complicated accounts.
We don't have many business expenses to speak of, just 2 payments I made to register a website, so I should hopefully be able to get some tax relief on those due to them being a business expense.
So as you can see, a very simple setup.
Problem is, from looking at the IR website, the paperwork for the tax year 2005-2006 has to be in by end of Jan and to be honest, I've looked at it and haven't got a clue what to do. We'd totally overlooked the fact that we'd have to fill in these forms and now it's getting a bit close to deadlines!
It's not a problem financially, we knew we'd have to do it eventually and pay what we owe. The business has been run properly with proper invoices in the company name being given to our customers etc so it's all legit.
So my questions are :-
1) Am I right in thinking that as an employed person with a business on the side I carry on paying PAYE through my 9 to 5 job, and do a self assessment for any extra I've earned.2) Have I got the deadlines right? Do the forms for 2005-2006 have to be in by end of Jan?
3) Should I just find a local accountant who can do the self assessment forms for us?Any ideas?
Cheers (and thanks for reading!)
R