Self Assessment Tax Returns
When you become a company directors, regardless of whether your draw an income from the company, you are obliged by law to register for Self Assessment. Your accountant will assist you with this once your company is incorporated.
Self Assessment involves completing a return each year to 5 April detailing all your income, tax paid any any allowable deductions and forwarding to HM Revenue and Customs. HM Revenue and Customs then use this to assess whether you have any further tax to pay.
In the case of a company directors, you would usually enter your salary and dividend income from your company along with any further income you receive i.e. rental income and also any pension contributions you make/receive.
HM Revenue and Customs, as you may be aware, are encouraging everyone to submit Self Assessment Tax Returns Online. This can be done via their website, or via specialised software.
Tax Returns must be submitted by 31 October if filing by paper, or 31 January if filing online.
HM Revenue and Customs have recently implemented a new penalty system for late submission of tax returns, or late payment of the tax liability. This penalty system is particularly strict and financially harsh.
Your Forbes Young accountant will prepare your tax return and ensure that it is filed in advance of the deadline – no penalties incurred!