We provided enhanced features in the 2019/20 Accounting Spreadsheet and have included further calculations to help you understand your business.
The report is now split into several sections, to provide an in-depth view of your self employment.
Your Profit and Loss Report
The profit and loss report shows a basic overview of your business, highlighting all income and expenses you’ve incurred as a self employed consultant.
The income section (Section A on the image) includes both income from Consultant and Team Developer sections of our spreadsheet.
There is then a breakdown of expenses (Section B), including both consultant and team developer expenses – but also the mileage allowance claim and working from home allowances.
Figures for the mileage and working from home allowances are added from the information provided on the mileage tracker sections (both Consultant and Team Developer parts) and calculated against HMRC allowances. The working from home allowance is from the customise page of the spreadsheet. Both mileage and working from home allowances can be amended via the relevant buttons on the spreadsheet dashboard.
Section C provides a basic profit/loss calculation, when all income (A) has any expenses (B) deducted from the total. There is also a chart which shows these figures (A and B) in the top right of the page.
The final calculations in this section are an overview of Tax, National Insurance and Payments on Account. These figures are calculated from the enhanced reporting – scroll down the page to view the relevant calculations.
Breakdown and Summary
To help you understand your figures in further detail, a breakdown of figures is provided in section 2 of the report. The below image, and subsequent narrative, explains the reporting provided.
Section A: This provides a monthly breakdown of your core group activity. This includes information provided from your monthly PFS documents which are input on the monthly sections of the spreadsheet. These are then totalled at the end of the table.
There is also a small graph which shows the income and expenses of your groups on a monthly basis. This can be useful at the end of the year to see which months have been most profitable to your business, and identify and peaks (and drops) in income and expenses.
Section B: A summary of the figures are provided for your other Slimming World consultant income. The totalled values from the table in Section A are included for the consultant activity for the main groups.
Any relief cover is then added below, including any income and expenses incurred in running these groups for the purpose of your PFS documents (weekly summaries for relief)
If you’re a Team Developer, a summary of income and expenses are also provided.
Section C: Mileage and Working from home allowances are calculated in this section, based on the information provided on the spreadsheet.
Section D: This provides a reminder of how the figures are calculated, and a breakdown of the figures you’ve included in the spreadsheet.
A simple calculation is shown at the bottom to calculate your profit.
VAT Threshold Check
If you earn over £85,000 in self employment (2019/20), you’ll need to be registered and pay VAT on a quarterly basis to HMRC. Our spreadsheets and accounting tools do not support VAT.
The VAT Threshold Check looks at your current income and calculates where you are in regards to the threshold. A handy chart to the side gives you a visual indication of where you are in relation to the VAT Threshold.
If you approach within £1,000 of the threshold, the system will warn you. If you go beyond the threshold, the messaging will change to advise you to contact our support team for the next steps which you’ll need to follow and how to register for VAT.
HMRC Tax Indications
The system will attempt to calculate your Tax based on your current profit, from the information provided in the spreadsheet.
Nearly all individuals will have a tax-free allowance provided, and the system will calculate based on the allowance as to what tax you’re likely to have at the end of the year.
The spreadsheet currently doesn’t calculate the higher tax rate.
National Insurance Calculations
The system can calculate Class 2 and Class 4 National Insurance against any profit which is taxable through the spreadsheet. This allows you to understand the likely amounts of Class 2 and Class 4 which are applied to any profits.
The below example shows a profit of £20,000. As such, both Class 2 and Class 4 are due, and the system has calculated the amount based on the profit above £8,632 at 9%.
The system does not calculate on profits of over 2% – if you need to be paying these, it’s likely you will need to be VAT registered.
Payments on Account
The system has been setup to calculate where Payments on Account are due depending on your circumstances.
Payments on Account are due when a tax bill is over £1,000. These are additional payments which you need to make, but are taken against any future tax bill. Class 4 NI contributions are also included in this amount.
The below example shows how the profit of £20,000 used in earlier examples has been processed through the system.
In this example, the system has calculated that £1,630 is due as tax, and £1,023.12 is for Class 4 National Insurance.
The system has calculated that Payments on Account are required, and these are listed on the table.
The table also shows the dates of when these total payments are due.
Note: These calculations do not include Class 2 at this stage