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Completing a self-assessment tax return, we can all agree, is one of the least agreeable aspects of becoming a contractor.
Of course, if you’re a CEJ client then worrying about tax returns is something other people do. If you’re on our books and HMRC have written to you requesting one, you just need to let us know about it as soon as possible. That way you’ll be on our radar and can rest easy knowing we’ve got it in hand.
If you haven’t received a letter from HMRC and we haven’t been in touch, worry not – you may not have to complete the dreaded tax return at all. It is a common misconception that all directors have to complete one by 31st January each year.
Here’s the test. If you answer yes to any of these questions, then HMRC will be expecting a tax return from you. If you answer NO to all of them, then you can rest easy in the knowledge that they won’t. Ready?
Have HMRC specifically requested one from me?
Do I still need to pay off my student loan?
Do I have another income, aside from my Limited Company, that isn’t taxed at source? (These could include rent from a property, owning another self-employed business, having an investment in another business, having a second job)
Do I take more than £3,200 per month from my Limited Company?
So if you have received a recent letter from HMRC, don’t forget to send it to us, preferably using the “send a document" function on our app, so that we’re aware of it too. And don’t forget that although the completed tax return has to be with HMRC by 31st January 2017, it covers the income from the financial year which ended on 5th April 2016. That also means that all the changes brought in earlier this year won’t have any effect until the tax return which goes in on 31st January 2018.
We hope that’s cleared some things up, but if you have any questions please don’t hesitate to get in touch with Jo (email@example.com) or Peter (firstname.lastname@example.org). We’re here to help.