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Posted Mon, 26 Jun 2023 17:24:30 GMT by
For the last two tax years my self-employment income has come entirely from publishing royalties. In the first year it was £14k and in the second year it was £84k. Now I'm completing my tax return, and I've claimed averaging in the box at 'Averaging adjustment (only for farmers, market gardeners and creators of literary or artistic works)'. I entered -£35k (the difference between £84k and the £49k average for the two years) so that £35k will transfer to the first tax year, and I narrowly avoid paying the Higher Rate. So far, so good... However, much later in the tax return, I come to ' Adjustments to tax due - Do you need to make any adjustments to increase or decrease your tax due for 6 April 2022 to 5 April 2023? This may apply if you are claiming averaging for farmers or creators of literary or artistic work...' Does this mean I need to calculate the effect of averaging here myself, or can I just leave it blank, and it will be calculated automatically?
Posted Thu, 29 Jun 2023 14:23:53 GMT by HMRC Admin 5

Please note that completion of the SA110 (ie, the 'record the results of your calculation' section of the return in which the later  'Adjustments to tax due ' question appears) is not mandatory.
We will calculate your 2022/23 tax liability based on the entries made in the relevant sections of your tax return, including the 'Averaging adjustment' entry referred to in your question.

Thank you

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