Accountancy & Business Advisory Services
Tax Returns
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Filing a UK tax return can seem daunting, but it’s a vital part of managing your financial responsibilities. It ensures you are paying the right amount of tax and helps you stay compliant with HMRC. If your finances are more complex, enlisting the help of an accountant can be a good way to ensure your tax return is accurate and submitted on time.
There are different types of tax returns depending on the type of tax you must pay.
For instance, if you’re the director of a Limited Company then your business must submit a Company Tax Return and pay Corporation Tax. If you’re a self-employed sole trader, you must make Self Assessment submissions so you can pay income tax.
Self Assessment
Not everyone in the UK is required to file a tax return. However, certain individuals and businesses must file a Self Assessment tax return if they fall into one of the following categories:
1. Self-employed Individuals (Sole Traders): If you’re self-employed and earned more than £1,000 in a tax year (April 6th to April 5th), you must file a tax return.
2. Company Directors: Directors of limited companies who receive income not taxed at source (e.g., dividends) typically need to file a return.
3. Landlords and Property Owners: If you earn rental income from property, you must report it on a tax return, particularly if it’s above the property allowance (£1,000).
4. High Earners: Anyone with an income of over £100,000 per year must file a tax return, even if they are employed and pay tax via PAYE.
5. Investors and Dividend Recipients: If you have untaxed investment income or dividends over £2,000 or capital gains from the sale of assets like property or shares, a tax return is required.
6. Partners in a Business: If you are part of a business partnership, you must file a return to report your share of the profits or losses.
7. Foreign Income: If you receive foreign income, whether from a job, investment, or pension, it must be reported.
8. Other Circumstances: There are specific scenarios where you may need to file, such as if you receive income from trusts or estates or claim certain types of tax relief.
Company Tax Return
Before you pay corporation tax, you will need to complete your company tax return. While the deadlines for paying corporation tax and submitting your company tax return are separate, many businesses handle both because filing your company tax return (form CT600) is essential to calculate how much corporation tax is owed.
Although you can file the tax return yourself, and many small business owners do, most companies prefer to use an accountant to ensure everything is accurate and compliant with tax regulations.
Your personal finances and assets are viewed separately from those of your business when you’re the owner of a limited company, which means you’ll need to report and pay tax differently to a sole trader or partner. The process partly depends on how you pay yourself from the business.
If you’re not too sure, we can check for you, or you can contact HMRC to find out.
Filing a UK tax return can seem daunting, but it’s a vital part of managing your financial responsibilities. It ensures you are paying the right amount of tax and helps you stay compliant with HMRC. If your finances are more complex, enlisting the help of an accountant can be a good way to ensure your tax return is accurate and submitted on time.
There are different types of tax returns depending on the type of tax you must pay.
For instance, if you’re the director of a Limited Company then your business must submit a Company Tax Return and pay Corporation Tax. If you’re a self-employed sole trader, you must make Self Assessment submissions so you can pay income tax.
Self Assessment
Not everyone in the UK is required to file a tax return. However, certain individuals and businesses must file a Self Assessment tax return if they fall into one of the following categories:
1. Self-employed Individuals (Sole Traders): If you’re self-employed and earned more than £1,000 in a tax year (April 6th to April 5th), you must file a tax return.
2. Company Directors: Directors of limited companies who receive income not taxed at source (e.g., dividends) typically need to file a return.
3. Landlords and Property Owners: If you earn rental income from property, you must report it on a tax return, particularly if it’s above the property allowance (£1,000).
4. High Earners: Anyone with an income of over £100,000 per year must file a tax return, even if they are employed and pay tax via PAYE.
5. Investors and Dividend Recipients: If you have untaxed investment income or dividends over £2,000 or capital gains from the sale of assets like property or shares, a tax return is required.
6. Partners in a Business: If you are part of a business partnership, you must file a return to report your share of the profits or losses.
7. Foreign Income: If you receive foreign income, whether from a job, investment, or pension, it must be reported.
8. Other Circumstances: There are specific scenarios where you may need to file, such as if you receive income from trusts or estates or claim certain types of tax relief.
Company Tax Return
Before you pay corporation tax, you will need to complete your company tax return. While the deadlines for paying corporation tax and submitting your company tax return are separate, many businesses handle both because filing your company tax return (form CT600) is essential to calculate how much corporation tax is owed.
Although you can file the tax return yourself, and many small business owners do, most companies prefer to use an accountant to ensure everything is accurate and compliant with tax regulations.
Your personal finances and assets are viewed separately from those of your business when you’re the owner of a limited company, which means you’ll need to report and pay tax differently to a sole trader or partner. The process partly depends on how you pay yourself from the business.
If you’re not too sure, we can check for you, or you can contact HMRC to find out.