Expenses self employment

[Ethel Street]

5 minutes ago, kittyadmirer123 said:

Re the indemnity, its professional indemnity. Im a nurse and pay fees to the nursing council etc. But because Im self employed , I have to have extra indemnity in case I am found negligent etc....

 

Last year it was £2700 but  wasnt included in last years return 2018-2019. I forgot to tell my accountant. I hope that clarifies. Can i enter it on SA and in the free hand space on SA  , just mention it?

 

The urgency here is presumably because you have not yet submitted your 2019-20 tax return and you have to get it to HMRC by 31st January or HMRC will charge you late filing penalties?

 

Is this what you mean by "the indemnity"?

 

Professional indemnity arrangement (nmc.org.uk)

 

If so I understand it to be an insurance premium for professional negligence/professional indemnity insurance which you are required to have as a condition of registration with the Nursing and Midwifery Council. Because you are self-employed you have to pay the premium yourself. In which case  I'm confident that is an allowable business expense. You forgot to claim it as an expense in your 2018-19 tax return and want to claim it now, and also claim it for  2019-20 tax year. 

 

Hopefully that clarification will enable to other posters who know more than I do about self-employed tax returns to advise you.

 

 

[Ethel Street]

After saying for months that no way was the deadline going to be extended on Monday HMRC changed their mind and extended it to 28th February.

 

But they haven't extended the date for making payments on account or paying tax due. That's still 31st January, according to this newspaper article. And interest on unpaid tax will still be charged from 1st February. So I can't think of any reason you wouldn't file now if you are ready to go.

 

HMRC extends tax self-assessment deadline by a month to 28 February | Tax | The Guardian

Edited January 29, 2021 by Ethel Street