The capital allowance section of the self assessment tax return form involves maintaining records of fixed assets purchased and applying the tax rules relating to fixed assets. These tax rules involve claiming a first year allowance on most non vehicle assets in the year they are purchased and writing down allowance thereafter. Commercial vehicle purchases are also subject to a first year allowance while non commercial vehicles can receive writing down allowance of 25% in the first year restricted to 3,000 pounds.

The income and expenditure section is straighter forward for the non accountant requiring a statement of the income and expenses incurred during the financial year. Accurate records should be maintained including receipts for everything to support the figures being declared.

The next sections of tax adjustments do require at least a minimum knowledge of the tax system. Knowledge of what is allowed and disallowed and what adjustments can be made regarding apportionment of net profit to produce an annual net taxable profit plus adjustments for previous years losses.

The final section of the self assessment tax return form is the balance sheet. Only those self employed businesses that produce a balance sheet need complete this section which is optional. And even those businesses that have produced a balance sheet need not complete this section if they do not wish to.

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