Help Filling out Income Tax Form 11

TicTacWoe

Hi everyone, I started my own business with the help of the BTWEA scheme last year and need advice with filling out my first income tax Form 11 for the year 2016.

My business started in November 2016, it relates to web graphic design etc, I work from home. There's not much more to the business as such so much of the form doesn't relate to me but there are many of the basic things that I am quite confused about.

I would prefer not to hire someone to sort this out for me as this only relates to business from 2016 and as my business started in November of 2016, there is very little money involved as the first two months were slow in terms of work. If anyone on here can help or point me in the right direction regarding the following questions I would be very grateful.

Most of my questions relate to the "Self Employed Income" section as the majority of the remainder of form 11 does not relate to me or is fairly straightforward.

EXTRACTS FROM ACCOUNTS
Under this section they want a start and end date, is this simply the start date of my business and the 31st of December as the end date?


INCOME

Sales / Receipts / Turnover
This I assume is the overall money I have made in the timeframe - simple as that?

Receipts from Government Agencies (GMS etc.)

Would this include the social welfare money I still get as part of BTWEA? If not, should that money need to be included anywhere on the form?


Trading Account Items

Purchases ive left this blank as it seems to relate to items bought for resale purposes if I am not mistaken and I bought nothing for the purpose of resale.

This is followed by
Gross Trading Profits - I assume in that case this should also be left blank?


Capital Account and Balance Sheet Items
There is a section in here titled
Cash / Bank (Debit) - (in the helpsheet it is described as follows: "this is cash on hand or in a bank. It should include all deposit accounts, savings
accounts, current accounts, Credit Union accounts, Building Society accounts, etc")

I don't really understand what they're looking for me to put in this field.

Licherandkebab

Hi,

You're correct that the end date is 31st December.

Yes, sales/turnover is simply whatever sales you've taken in.

Your social welfare payments belong further down the form, after the PAYE stuff.

Your purchases figure will be 0, so your Gross Trading Profits will be the same as your sales. Make sure to include all business related expenses in the next section, as your tax will be calculated on the net profit, i.e. difference between sales and expenses.

I suppose the cash/bank balance is just to ensure there's no money laundering or hidden revenue. For example if you had €5k this year and €200k next year after only recording €10k sales.

Also be aware that you need to provide a preliminary tax figure for 2017 which you'll need to pay along with your 2016 tax.

Not sure if you're aware, but there's a Start Your Own Business Relief for anyone unemployed for the 12 months preceding their business commencement date whereby you don't pay tax on the business for 2 years!

Jocular

Hi, I'm helping out a friend in a similar situation. My friend was made redundant in early 2019 but towards the end of 2019 she was asked by her previous employer to do some contracting work that involved travel etc. She sent them an invoice and has travel expenses relating to it. Form 11 has to be filled out because of other rental income

I have 2 questions. Firstly on the extract accounts is it only the cash bank that would be necessary for her personal accounts. It was a once off thing so there were no accounts prepared.

Secondly she charged back food costs in her sales invoice to her previous employer but these expenses would not be deductible on form 11 but they are included in revenue. So she's basically paying tax on food she bought but not able to claim the expense element of it. Is there a way to not pay tax on this when she's making no money on it.

Thanks in advance

Dronebee

How do I change the relevant year at the start of the form 11. The dropdown menu only goes to 2020 ?