Self Employed Tax Return
The dreaded 31st January doesn’t have to be like that – take control and own the situation.
Those of a certain age will remember the HMRC’s character Herbert proclaiming that “tax doesn’t have to be taxing”. Well he is right if you engage a professional to assist you. You will need to do a return if you are self-employed, a CIS contractor, have property income, receiving dividends as part of a remuneration strategy or earn greater than a £100k. As part of the normal service, I will review the previous couple of tax years to understand your position and recommend our best course of action.
Limited Company Tax Return
Just like employees, a Limited company needs to do a tax return.
Simplified to a couple of numbers, there is a lot work behind the scenes on calculation a limited companies tax return. This means that I work extensively with you through out the period of the return to understand the business and advise where possible to achieve optimal outcomes.
The deadline for filing is 12 months after the end of the accounting period the return covers. Your accounting period is normally the same as the financial year covered by your company’s annual accounts – but it might be different in some circumstances, for example your first year of trading. In that situation, you would need to send two tax returns to cover your first year.
The company tax return is also called form CT600. It will include standard company information, but you also need to do some complex calculations. Depending on your company these include calculations like:
- income (including profits, trading losses brought forward, property income)
- chargeable gains
- profits before other deductions and reliefs
- deductions and reliefs
- tax reliefs and reductions
- tax reconciliation
The accounts and computations part of the company tax return must be in the Inline eXtensible Business Reporting Language (iXBRL) format.
What are the penalties for filing a late company tax return?
As you might expect, there are fines for filing late.
|How late is your return?||Penalty|
|One day late||£100|
|Three months late||A further £100|
|Six months late||HMRC will estimate your Corporation Tax bill and add 10 per cent of the bill as a penalty|
|12 months late||Another 10 per cent of the tax liability|
From SMEs to very large complex groups, I have a solution for you
For small companies, the statutory accounts can become an important selling tool allowing credit limits to be increased. It also is an important selling & marketing tool enabling the directors to convey some important non-financial information in their Directors reports.
Whilst all of that remains true for larger companies as well, I have developed a service where I look after the entire statutory accounts production from TB to signature. This ‘turn key’ solution allows finance departments to focus on greater value add internal projects.
The solution entails taking the TB and creating the ETB, mapping into the statutory accounts format, and walking your existing auditors through. This service works for single entity organisations, but will certainly resonate to organisations who have multiple statutory entities being delivered simultaneously.
VAT, Payroll and CIS
Compliance activities without the worry…..
From registration, online submissions and annual reporting, your best placed to be running your business, not doing these rather technical submissions.
Company House Filings
Don’t forget your annual return
Probably one of the least value add activities I perform- I am more than happy to help you undertake this task yourself
Buy to Lets Into Ltd Company
All is not lost for residential landlords facing increased tax bills
Few people buy investment property without borrowing part of the purchase price. As a result, getting tax relief for interest costs is an important part of the fiscal arithmetic in most cases. So, when legislation was introduced in 2017 to limit tax relief on interest paid on loans taken out by individuals to acquire residential property, it caused some rethinking in the market.
We won’t go into the detail of the new rules here: it’s enough to know that the increased tax payable can make lettings of residential property a lot less attractive and can in some cases even turn a profitable letting into a loss-making one. The rules have been phased in over a period and will have full effect from 6 April 2020.
There are a number of possible solutions. These include consolidating into a smaller, less highly geared portfolio or refocusing away from residential into commercial property, where the restrictions don’t apply. But since the restrictions apply only to individuals and partnerships and not to companies, one of the solutions being suggested is to transfer the letting activity to a company. That can indeed be the right answer: but it is nowhere near as simple as some advisers would have you believe.
Personal Service Company
The term Personal Service Company commonly describes a limited company that is setup for contractors and consultants. The principles are that Personal Service Companies sells the work of an individual and is owned and controlled by the individual.