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Posted Sat, 02 Apr 2022 18:55:49 GMT by Sat2422
I would like to register for self assessment as i am self employed, but the link always takes me to a business tax account. However, I haven’t started any company but just working freelance on a personal basis. So can I register a personal tax account instead of a business one? How? The self employed link seems not giving me this choice at all!
Posted Tue, 05 Apr 2022 14:24:31 GMT by HMRC Admin 26

When you register as Self Employed, this will take you to the Business Tax Account. 

As your Self Assessment is managed through the Business Tax Account, you will be able to access both your Self Assessment and Personal Tax account there.

Thank you.
Posted Tue, 12 Apr 2022 14:01:49 GMT by Sat2422
Thank you for your reply. So after I open the business tax account and file the self assessment tax return there, how would I be able to claim the personal allowance ? will my personal allowance apply automatically in the tax calculation system there? Or do I need to apply for it somewhere ?
Posted Tue, 12 Apr 2022 14:38:22 GMT by HMRC Admin 26

The Personl Allowance would be applied automatically to the calculation.

Thank you.
Posted Thu, 05 May 2022 20:01:27 GMT by Sat2422
Thank you for your reply! In the self assessment tax return form, there seems to be a question asking if I have foreign income. My case is that I am working in U.K. giving online services to my clients. Some clients are overseas and don’t have a U.K. bank account to pay me, so they pay to my overseas bank account in a foreign currency, then I converted their foreign currency into sterling pounds and deposited back into my U.K. bank account. In this case, how should I answer the question about foreign income in the self assessment tax return? Is this regarded as foreign income? As I said, I’m all the while working and giving my service in U.K. but some clients just don’t have sterling pound account to pay me. Thanks in advance for your advice.
Posted Wed, 11 May 2022 13:00:32 GMT by HMRC Admin 19

This income is still part of your UK self employed income and there is no need to complete the foreign pages. Please convert the currency into sterling. 

Thank you.
Posted Mon, 30 May 2022 00:41:23 GMT by Sat2422
Thank you for your reply. As I’m delivering online services to my clients, I wonder if I can claim my mobile data expense as an expenditure in filling out the self assessment tax return. However, the mobile data is not just serving my business purpose, it’s also serving the purpose of my personal usage. In that case, what should I do? Thank you in advance.
Posted Tue, 31 May 2022 10:52:45 GMT by HMRC Admin 17

You would need to apportion the actual usage into what is business and what is personal.

Take the percentage for business use against your monthly charge to claim as a business expense eg 40% business useage
against a monthly bill of £20 would be £8  .

Thank you.
Posted Thu, 30 Jun 2022 07:45:12 GMT by Sat2422
Thank you very much for your advice. While applying for the Government gateway number, there’s a page asking for identity verification, apart from my passport, it requires one more item, such as p60, driving licence or credit card. As I’m a self employed person, I don’t have any p60 (I guess it’s something to do with previous employment? I don’t have it), I don’t have any driving licence or credit card either. Can i key in my debit card instead? It does mention a phone contract, which I do have one but that’s not a very formal one, like the phone company just indicated on the customer login page when my present contract expires. But I can remember when it started. Grateful for your advice! 🙏🏻
Posted Thu, 30 Jun 2022 14:24:12 GMT by HMRC Admin 26

Debit card details is not one of the options currently provided for verifying through the Government Gateway.

The journey will be updated during July and you may be able to verify then. If you are not able to verify you would register and complete tax returns by paper.

Thank you.
Posted Mon, 25 Jul 2022 23:46:28 GMT by Sat2422
Thank you very much for your reply. As I am a freelancer giving online services to my clients, I regard myself a self employed person and should file a self assessment tax return. Though I haven’t set up a company or done any business registration, your registration link to create an account for self employed still takes me to the business tax account. I want to clarify if it is really ok to create this business tax account because some people say once I open a business tax account, I will be paying corporate tax! But I am only a freelancer and have not started a company formally. Why would I be paying corporate tax? Grateful for your clarification.
Posted Tue, 26 Jul 2022 13:03:43 GMT by HMRC Admin 17

Although the Self Assessment details are held within the Business Tax Account,

this does not mean that you have registered a company with HMRC.

Thank you.
Posted Wed, 27 Jul 2022 13:10:55 GMT by PNWUK
Hi, I came to the UK in Dec 2021 from Hong Kong, and have become a UK resident. I have no any UK tie before the arrival. I had been a freelance environmental scientist in Hong Kong for many years, and of course all the clients are located in Hong Kong. After my arrival and get a home in UK, I continue to work on those projects not yet completed, i.e. I still earning those Hong Kong dollars. Under this situation, is this still considered as UK self-employment? or as foreign income? If counted as UK self-employment, what exchange rate accepted by HMRC to convert those HK dollars to GB pounds, as the money not always transferred to my UK bank account, but stay in Hong Kong account. Thank you
Posted Thu, 28 Jul 2022 14:15:48 GMT by HMRC Admin 25

It would be self employment.

For the exchange rate, please refer to guidance at:

Exchange rates from HMRC in CSV and XML format

Thank you. 

Posted Tue, 09 Aug 2022 00:50:44 GMT by Sat2422
Having self employment as my only source of income, under what conditions can I claim the £1k trading allowance? If I claim the trading allowance, can I also claim the capital allowance as I’ve bought a digital device for my business? Or the trading allowance and the capital allowance are mutually exclusive? Thank you!
Posted Tue, 09 Aug 2022 12:44:06 GMT by HMRC Admin 17

The trading allowance of £1000.00 is a simpler alternative to claiming expenses. 

If you claim the trading income allowance, you cannot deduct any allowable expenses or claim any other allowance. 

Further information can be obtained at :

Tax-free allowances on property and trading income  .

Thank you.
Posted Thu, 11 Aug 2022 12:57:02 GMT by Sat2422
Thank you for your reply. When I report my income in the tax return, if it’s an odd figure, do I need to round it up? For example, if my income in the year was £14697.68, should I report it as it is? Or should I report £14698 or £14697.70 etc? Thanks.
Posted Mon, 15 Aug 2022 10:59:02 GMT by HMRC Admin 19

When declaring income you should round down to the nearest pound.

Thank you.
Posted Wed, 17 Aug 2022 20:17:23 GMT by Sat2422
Thank you for your reply. I have a question on the consistency of the name format. When I applied for the NI number or registered for self assessment, I always submitted my full name. And now i am filling in the self assessment tax return, I notice that on the first page of the return, my name was already given in the name box; however it’s in an initial format. When I check the name shown on my personal tax account, it’s in another format. Would there be a problem? To illustrate with an example: my name is Jan Pam Ivy Smith. The name default shown on my tax return is J P Smith; but the name on my personal tax account shows Jan Smith. Do I need to make them consistent? I’m not changing my name though. I just wonder if this difference in format matters. Thank you for your advice.
Posted Fri, 19 Aug 2022 16:29:59 GMT by HMRC Admin 20
Hi Sat2422,

It does not matter that they are different. Some systems only use initials and some use the full name.

Thank you.

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