Self-employment section (SA100)

Add the Self-employment section to a self-assessment (personal) tax return.

Individual tax returns

If creating a tax return for an individual (who is not a sole trader):

  1. Select the Data input tab.
  2. Select Add a new section....
  1. From the UK Income tab, under the Trade/profession or vocation list, select Self-employment.
  2. Select to Create new stand-alone self employment.

Sole trader tax returns

If creating a tax return for a sole trader and their client record is linked to the proprietor's client record, a Self employment section is automatically added. Additional Self employment sections can be added as required (refer above to how to add).

You can import accounts and other information from external packages, Xero, or VT Final Accounts:

  1. Select the existing Self-employment section.
  2. Select Import accounts and follow the instructions on screen.

Linking to a sole trade client

If creating a tax return for a sole trade client but a relationship has not previously been created, add a Self employment section as detailed above but for step 4, select Link self-employment to a Sole trade client.

Once linked, you can import accounts and other information as detailed above.

Required tax return adjustments

After importing the accounts into the tax return make the following adjustments:

  • Remove any income relating to SEISS payments received from the Any other business income field in Data Input.
  • Include all SEISS payments received in the Self Employment Income Support Scheme grant field in Data Input including any additional payments received after the accounting period end but before 6th April 2021.
  • If a balance sheet has been prepared in the supporting Accounts, then the balance in the tax return will not match the accounts. There will be a difference in the Net profit or loss. As per HMRC advice, enter the amount of SEISS payments received into the Capital introduced field.

Fill out the self employment section

  1. From the Trade / profession / vocation tab, enter the Business name.
  2. Enter the relevant details for this section:
  1. If required, enter an Additional text note for Tax Return. This is included in the submission.
  2. Select Save changes.
  3. Add other sections to your tax return as required.

Notes

Coronavirus grant income received in the tax year should be included within the business profits. Make sure that box 20.1 on the SA100 is completed.

Any amount of Coronavirus grant income incorrectly claimed is repayable in full to HMRC. Make sure this is entered into the Coronavirus Income data entry. This is shown in the calculation produced by IRIS Elements Tax and Accounts.

The grant income overpaid is automatically included in HMRC’s calculation of the payments on account for 21/22 year. A claim to reduce the payments on account can be made. For more information, refer to the HMRC guide.

SEISS grant payments received must be included in the accounts prepared for a sole trader where accounts are being prepared in addition to the tax return completion. As SEISS is taxable on a receipt’s basis, any SEISS received after the accounting period has ended but before 6/4/2021 must also be included in the 2020/21 tax return in addition to the income declared through the accounts.

Include the amount of SEISS grant income received in the accounting period in Other income in the trial balance.