A Simple Guide To Filling Your TA-22 Form - NM Group News

A Simple Guide To Filling Your TA-22 Form

Category: Accounting, Malta, Tax

Filing your taxes can be one of the most intimidating aspects of running your own business, whether you’re full-time or part-time self-employed.

For the 2018 tax year, the deadline of submission of the TA-22 form is 30th June 2019.

Not sure about where to start? No need to panic – we’re breaking down each section of the form to help you fill it out.

Part 1: The Basics

The form starts out easy enough! Here you can fill in your basic details.

When filling out this section, keep in mind that:

  • Your address should be the same as the one on your I.D.
  • Type of business refers to the service you offer, e.g. retail, legal services, business consultancy
  • The PE (Permission to Employ) number applies to individuals who employ others within their business. If you work alone, you can leave this field blank.
  • Part-time and full-time self-employed individuals cannot operate a business without being VAT registered. VAT registration is easy, get in touch with our advisors for more information.

Part 2: Profit and Loss

This is the section that often causes the most distress for individuals filling out the TA 22 form.

As a part-time self-employed individual you are due to pay 15% tax on the net profit brought in within that tax year.

This means that you have to take the total turnover of the relevant tax year (in this case it’s 2018), and deduct your 2018 expenses to find your net profit. There are three steps to finding out your net profit:

Step 1: Calculating your gross profit

This step can have two processes, depending on the type of business you run; it is a 1-step process for service businesses or a 2-step process for businesses dealing with stock (e.g. retail, manufacturing, construction).

So, if your business involves buying stock, this is where you take your total turnover and deduct costs related to stock purchasing; this will leave you with your gross profit.

This section can be confusing for service-based businesses that do not incur any expenses related to stock. If you run a service-based business and do not incur expenses related to stock, then all you need to do is put down your annual turnover in box 1, cross out boxes 2-6, and put down your annual turnover as your gross profits in box 7.

Pro tip: When entering your turnover, ensure that the amount is the same as the turnover reported to the VAT department in your VAT return.

Step 2: Calculating your expenses

The expenses are self-explanatory, but do keep in mind that expenses related to trading activity may include:

  • Stationery and office supplies
  • Depreciation of your car
  • Work travel
  • Advertising and promotion
  • and much more!

This part may seem straightforward, however there are probably a number of incurred expenses that you may not be aware of. Our advisors are available to help you identify tax-deductible expenses and ensure that you are paying the least tax possible while remaining completely compliant.

You’ve probably heard about people saving receipts for tax purposes, and this process is exactly why! It’s at this point that you have to gather all your receipts and sort them according to the above categories to help you calculate your expenses.

Part 3: Signing Off

Once you’ve confirmed that your calculations are correct and accurate, this last section requires your signature and an indication of how you will be submitting your tax payment.

Payment can be done by:

Do you require further assistance with your TA 22 form? Get in touch today and our advisors will ensure you get your payment in time by 30th April 2019!