Initially, I thought the SA would be straight forward as she has paid tax via paye on employment for the whole period.
She is a singer and has performed twice in the period. Income totalling £300. So I would have accounted for these as self-employment and reduced the amount by the travel expenses.
The thing is she has around £2000 worth of equipment that she wants to transfer to the the business as expenses. This would mean that the Self-Employment part of her return would equate to a loss of around 1700.
She has earn't well over the personal allowance and has paid around £3500 paye on earnings of around £19000.
This is her first self assesment for this business. Should she move the equipment into the business now or wait until the next SA?
the loss would not be around £1,700 as she wouldn't be allowed to claim the whole £2,000 for the equipment. The equipment was owned before her self-employment started, therefore AIA cannot be claimed on it. You can only apply writing down allowances for the equipment. She may still be making a loss though and I believe it is worth transferring the equipment into the business this year so that she does not have to pay tax on the income from her self-employment (it's a loss) and the loss can be offset against her income from employment taxed at source, thus claiming a tax refund for the year. I'm assuming her tax return does not include any other source of income apart from what is discussed here. This is just my take on this, not to be taken as a recommendation.
Hope this helps.
Fabs
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If the period end was before 6.4.11 then you should have a good idea what she has been doing during this current tax year.
Generally, the higher you earn, the greater proportion you pay in tax and NI. If she's still using all her allowances in the employment then its worth considering if she'll exceed the Class 2 + 4 NI thresholds in her self employment. In other words, the allowances could be more use this year than last.
