Create Self-employment: Create New

Highlight Create New and click Confirm.

Earned Income – Create Self-employment opens, which has seven tabs:

Information

On the Information section of this tab, enter as appropriate:

• Business name
• Business description
• First line of business address
• Postcode
• Whether business details have changed in last 12 months: If this box is ticked, then a Details of changes field is created
• Details of changes: This field is only visible if Business details have changed in last 12 months box is ticked.
• Date business commenced
• Date business ceased
• Date accounting period begins
• Date accounts are made up to
• Date basis period began
• Date basis period ended
• Whether Cash basis used

All of the above information will appear on Tax Calculation and will be used to populate page SEF1 of the tax return.

On the Other Information section of this tab, tick the relevant boxes to indicate that:

• Accounting period has changed permanently (from 2023-24 onwards this row will be removed)
• Accounting period has changed more than once since 2010 (from 2023-24 onwards this row will be removed)
• Special arrangements apply
• Profit for 2015/16 was reported on last year’s return

The above information will be used to populate boxes 11-14 on page SEF1 of the tax return and to add notes to Tax Calculation.

Income & Expenses

Income

Enter Turnover and Any other business income where indicated. The figures entered here will appear on the Tax Calculation at Report Preview and will populate boxes 15 and 16 on page SEF1 of the tax return.

Expenses

Select Expense type from the drop-down menu, and enter the amount of Total expenses and Disallowable amount. Allowable amount will be calculated as Total expenses less Disallowable amount. The details entered here will appear on Tax Calculation at Report Preview and will help populate boxes 17 to 46 on page SEF2 of the tax return.

An additional details row will be created as the one above is populated.

Add Backs

Enter the value of any goods and services taken by your client for personal use. The amount entered here will be included on Tax Calculation at Report Preview and will populate box 60 on page SEF3 of the tax return.

Net profit/(loss) before capital allowances

Calculated as Turnover plus Any other business income and add Backs, less expenses.

Capital Allowances

Enter where indicated the capital allowance claims for the period in respect of:

• Annual Investment Allowance
• Main Rate Capital allowances, on equipment (including cars with low CO2)
• Special Rate Capital allowances, on equipment (including cars with high CO2)
• Capital allowances for cars costing over £12,000 (purchased before 06/04/2009)
• Zero-emission goods vehicle allowance
• Business Premises Renovation Allowance (BPRA)
• 100% and other enhanced capital allowances
• Allowances on sale or cessation of business use
• Balancing charge on sale or cessation of business use (where BPRA claimed)
• Balancing charge on sale or on cessation of business use of other assets

The details entered here will appear on Tax Calculation at Report Preview. They will also be used to help populate boxes 49 to 59 on page SEF3 of the tax return.

Net profit/ (loss) is calculated Net profit/ (loss) before capital allowances from Income & expenses, less Total capital allowances.

Adjustments

Enter where indicated any adjustments in respect of:

• Overlap profits brought forward
• Overlap profits arising during the period
• Overlap relief claimed
• Adjustments for basis period
• Other adjustments
• Averaging adjustment
• Adjustment for change of basis

The details entered here will appear on Tax Calculation at Report Preview. They will also be used to help populate boxes 68 to 73 on page SEF4 of the tax return.

Adjusted profit/ (loss) is calculated as Net profit (loss) from Capital Allowances, amended for the adjustments entered above.

CIS/NIC

Construction Industry Scheme

Enter where indicated Total Construction Industry Scheme deductions from payments by contractors and Other tax taken off trading income.

These figures will appear on Tax Calculation at Report Preview and will be used to populate boxes 81 and 82 on page SEF4 of the tax return.

National Insurance Contributions

Voluntary Class 2 National Insurance contributions	Tick to indicate that your client’s self-employment profits are less than £5,965 and that your client has made Voluntary Class 2 NICs for the year.
Total amount of Class 2 NIC due for 2015/16	Enter the total amount of Class 2 NIC due for the year.
Exempt from paying Class 4 National Insurance contributions	Tick if your client is exempt from paying Class 4 NIC in respect of this self-employment.
Adjustment to profits chargeable to Class 4 National Insurance contributions.	If the Class 4 NIC calculation is to be based on a lower figure than the self-employment profits, enter the amount by which the profit should be adjusted for this purpose. This adjustment will not affect the profit figure for any other purpose.

The information entered in this section will be included on Tax Calculation at Report Preview and will be used to populate boxes 100 to 102 on page SEF5 of the tax return.

Losses

Enter details of the allocation of the trading loss arising during the period.

Brought forward loss	Enter the amount of any loss brought forward in respect of this self-employment.
Brought forward loss set off against current year	Calculated as the lower of Brought forward loss, Adjusted profit/ (loss) from Adjustments and nil.
Losses arising in current year	If Adjusted profit/ (loss) from Adjustments shows a loss, then the loss will appear here.
Current year loss set against other income	Enter any of Losses arising in current year to be utilised against current year income or gains from other sources.
Amount claimed to be carried back to previous year	Enter any of Losses arising in current year to be utilised against income or gains for the previous year.
Total losses carried forward	Calculated as the sum of Brought forward loss and Losses arising in current year, less Brought forward loss set off against current year, Current year loss set off against other income and Amount claimed to be carried back to previous year.

The information entered in this section will be included on Tax Calculation at Report Preview and will be used to populate boxes 77 to 80 on page SEF4 of the tax return.

Balance Sheet

Select Include balance sheet or Exclude balance sheet.

If you select Include balance sheet, then you have three sections on which to enter details of the balance sheet:

Balance Sheet – Assets, which includes:

• Equipment. Machinery and vehicles
• Other fixed assets
• Stock and work in progress
• Trade debtors
• Bank/ building society balances
• Cash in hand
• Other current assets and prepayments

Balance sheet – Liabilities, which includes:

• Trade creditors
• Loan and overdrawn bank account balances
• Other liabilities and accruals

Balance sheet – Capital Account, which includes:

• Balance at start of period
• Capital introduced
• Drawings

The information entered in this section will be included on Tax Calculation at Report Preview and will be used to populate boxes 83 to 99 on page SEF5 of the tax return