Limited Company Self Assessment

Overview: Limited Companies and Self Assessment

Our team of expert self assessment accountants at MJ Kane can help take the hassle and effort away of filing your taxes. In this guide, we help try to clarify the complex tax industry in the UK and HMRC regulations to get a better understanding of where you and your limited company stand in regards to self assessments.

If you are running a limited company and you have questions about your self assessment after reading handy guide – you can call our team on 028 9335 0290 or use the form at the end to submit an enquiry.

 

Do Limited Company Owners need to complete a Self Assessment?
As a limited company owner, you will need to register for self assessment personally – and register the company for corporation tax. We have a separate guide for self assessment help for directors.

You will have to file certain paperwork for your limited company to make sure that your company is compliant with HMRC regulations. Some of these include:

 

Your company tax return

HMRC will need this information to be able to calculate your Corporation Tax. This specific tax will take into context from your profits and losses.

 

Your annual return
This will be forwarded to Companies House. It should be noted this is a separate tax filing.

 

Your own personal tax return / self assessment as a director within the limited company
This will let HMRC calculate how much income tax you owe. You may not need to complete this if you are taxed from source and do not have any other source of income but it is advised to seek professional help and advice to ensure you are fully compliant

 

What is a Company Tax Return?
A company tax return is the form you will use to report your company’s profits or losses for that tax year. Again this is separate from a self assessment which is typically done to report on individuals’ earning. If you are a Director of a company, you will most likely need to register and complete one.

The purpose of a company tax return is to allow HMRC to calculate how much Corporation Tax a company owes on it profits for that tax year.

It’s absolutely essential to get the information and figures right so that you are either not misinforming your company earnings or overpaying on corporation taxes due. If your company made no profit at all, or has made a loss for that tax year, HMRC will still expect to see a company tax return.

 

When to File a Company Tax Return?
There is a deadline to sending company tax return to HMRC. This timeframe is the 12 months after the end of the accounting period (a full tax year – For example, April to April of each year) they relate to.

If you miss that deadline, there are penalties that start at £100 and will increase for every missed days.

Not all companies use this as their accounting periods to each tax year, so there’s no single target date that you may have to hit. Whatever period you company operates by you will need to file your company tax return within 12 months of it ending.

 

Will HMRC Notify Me to Complete a Company Tax Return?
All limited companies will be notified through a sent notice. This will tell you and your company to deliver a Company Tax Return alongside notifying you that HMRC is expecting a tax return from them. You should get this form up to 7 weeks before the end of your accounting period.

 

What Business Records Will You Need To Keep?
HMRC will expect you to keep a lot of paperwork for your tax return, so it is essential to practice good record keeping and bookkeeping.

Here is just some of the paperwork you will need:

Your personal tax documents
This can include P60s, P11Ds and P45

Details of any benefits you have received
This can include statutory sick pay or statutory maternity pay

Details of business expenses
You will need to be able to distinguish personal and business expenses. It is advised to keep a seperate business account for all your business expenses

Details of any other forms of income you receive
This can be rental income from property or land and can include share dividends.

Basically, HMRC are going to want to see a full picture of your finances. On top of the mentioned paperwork it is best to also keep records of any taxed award schemes, redundancy payments and a whole range of benefits.

 

Can I Hire A Corporation Tax Accountant For Limited Companies?
Yes, you can! Our team of corporation tax and self assessment accountants are experts in UK tax legislation, including those surrounding corporation tax for limited companies.

Through MJ Kane, you can be assured your company’s tax return is filed correctly and timely. A professional accountant can ensure your limited company are only liable for the correct amount of taxed owed.

You can call our team on 028 9335 0290 or use the form at the end to submit an enquiry.

 

Why Should I Hire A Corporation Tax Accountant?

Save time and hassle
Completing a company tax return and your self assessment form requires an intensive amount of time and record keeping to be able to complete it properly. Outsourcing this process to a corpation tax accountant or self assessment accountant can save time that can invested elsewhere such as your business or family.

 

Avoid frustration and confusion
Like any tax issues, it takes time to work your way around the system and understand what is required from you. A corpation tax accountant or self assessment accountant can help simplify this process.

 

Avoid potential fines or late submissions
Our corpation tax accountant or self assessment accountants ensure that your form is submitted accurately so there are no risks of receiving fines or the attention of HMRC when filled incorrectly. We’ll also ensure to have effective time keeping so that everything is done well before any deadlines.

 

Avoid mistakes and misinformation
Filling it out correctly can be confusing, especially if you are new to all this. Mistakes can be made, and these can be costly. A corpation tax accountant or self assessment accountant will review and ensure all information is correct before submission.

 

Being up to date on tax legislations
Tax legislation changes all the time, and our corpation tax accountant or self assessment accountant are keep up-to-date with it so you don’t have to

 

Getting potential savings
An experienced corpation tax accountant or self assessment accountant will know where to find deductions so you could reduce your tax bill legally. There’s also the risk of paying too much tax if you fill in your Self-Assessment form yourself. When you use an accountant you may be able to save more money than you spend on the service, which could be hundreds of pounds or more.

 

Professional record keeping
A self assessment accountant can help you to organise your files to make the process easier and quicker in the next tax year. Our accountants can also provide tips on managing your finances to make record keeping and bookkeeping easier.

 

Why MJ Kane For Your Self Assessment Accountant

  • Over 8000 satisfied clients
  • In over 30 countries
  • 60+ industrial experience
  • Your Own Dedicated Accountant
  • Competitive Quotes
  • Small Business Experts
  • No-Hassle Solution
  • Error-Free Accounting
  • In house experts for all accounting needs

You can get started with our Self Assessment Accountant Services by arranging a call back with our team on the form below.

Alternatively, for urgent queries please call us at:

Tel: 028 9335 0290

Self Assessment FAQs

What Do I Pay Taxes On?

  • Money you earn from employment
  • Profits you make if you’re self-employed – including from services you sell through websites or apps
  • Some state benefits
  • Most pensions, including state pensions, company and personal pensions and retirement annuities
  • Rental income (unless you’re a live-in landlord and get less than the rent a room limit)
  • Benefits you get from your job
  • Income from a trust

What types of businesses do MJ Kane Accountants serve?

MJ Kane specialises in serving serves small and medium-sized businesses of all kinds (sole-trade, limited, partnership, contractor, charity etc..), but we are best known for our expertise in these industries:

  • Professional services – Real estate agents, insurance agents, financial advisors and more
  • Personal service contractors – HVAC technicians, plumbers, electricians, painters, mechanics and more
  • Retail – Clothing store, e-commerce sellers, convenience stores, coffee shops and more
  • Health and wellness – Gyms, salons, spas, dentists and more
  • Restaurants – Quick-service restaurants, fine dining restaurants, coffee shops, caterers, specialty food providers and more

I am a Sole Trader, do I need to complete a Self Assessment?

Sole Traders are required to submit a self-assessment tax return.

I am a Partner in a partnership, do I need to complete a Self Assessment?

Partnerships are required to submit a partnership tax return, and each partner must also submit a self-assessment tax return.

I am a Director of a limited company, do I need to complete a Self Assessment?

Limited Companies are required to submit an annual return, CT600 company accounts, and directors are all required to complete a self-assessment tax return.

How Will Your Self Assessment Accountant Help Me?

Through our tax return accountants service, we will work to minimise any tax owed while preparing your Self Assessment. Our service is tailored for each individual but depending on your circumstances we can also claim for relevant expenses, allowances and tax reliefs on your tax return. We also offer a one-off tax advice where we can help you understand your UK personal tax situation.

How Long Do I Keep Tax Records In The UK

For individuals this should be a minimum of 5 years.

For companies this should be a minimum of 6 years.

You should ideally have a dedicated filing system for all records of historic years to ensure you can access any document easily.

How Do I Claim Tax Relief on Self Assessment?

Within the self assessment form there’s a series of supplementary pages, this is particularly important if you’re self-employed or receive income from another source – you’ll  use this section to help claim tax back from HMRC.

Read more about how to claim tax relief on your self assessment

Do I need to complete a self assessment form if I am small business owner?

Yes. Small business owners are considered self employed persons and are required to complete a self assessment form so HMRC can tax earnings appropriately.

Learn more about self assessment for small business owners.

What Do I Need For My Self Assessment Form?

Before starting your self assessment tax return, ensure you have the following

  • My PIN
  • My UTR number
  • My Gateway ID

Alongside this, you’ll need record of your income and self assessment records for tax relief. We have procured a complete self assessment checklist to help complete your self assessment form.

What Happens If I Fill A Self Assessment Wrong?

You may face certain financial penalties if you submit incorrect information alongside the actual tax owed. There are also penalties for late submissions.

We cover this through our How to do a self assessment guide.

How Long Do I Keep Tax Records In The UK

For individuals this should be a minimum of 5 years.

For companies this should be a minimum of 6 years.

You should ideally have a dedicated filing system for all records of historic years to ensure you can access any document easily.

Who needs to fill a Self Assessment?

Typically, if you receive income or capital gains that do not have tax automatically deducted – you will need to report this under a self-assessment.

We have a separate guide to find out if you need to do a self assessment