Do You Need to Do a Company Director Self Assessment Tax Return?
Many people ask this question and the answer to it is really simple:
• If you do not pay PAYE (Pay As You Earn, system to collect taxes from your earnings or pensions during a fiscal year)
• If you are not a permanent employee.
• If you have a secondary income from income abroad.
• If you are an owner or have income from savings or investments.
• If you are self-employed, including the fact of belonging or being in a company.
• If you are a business director OR company director
• If you are a minister of religion.
In other words, if you have any income that the HRMC needs to know about you, you must complete a self-assessment tax return form.
[callout animation=”fadeInUp” title=”Company Director?” btn_title=”Get a Free Consultation” btn_url=”https://taxtwerk.com/free-tax-consultation/”]Yes, if you are a director of a limited company you will need to file a self assessment tax return each year – even if your company was dormant, or you made a loss for the year.[/callout]
These rules about who should file a self-assessment tax return have been changed over the last few years.
Sadly, the tax collectors (Godfathers of tax) do not always make clear who should or should not file a return.
That’s why we’ve prepared this quick little guide to help you decide whether or not to file the tax return online.
Check Your Tax Situation
If the tax collectors have sent you a notice to file a tax return then you must submit a self assessment online.
Even if you do not have any tax payable, since if you ignore the notice you can receive a penalty of £100, or more, for failing to file the tax return declaration.
If you believe you do not need to make a statement, you should call HMRC and notify them of your reason before the tax year filing deadline (usually, January 31).
In general terms, self-employed people (self-employed persons who do not work for a company), individual traders, directors of limited companies, business partners, people who are high income earners employed in a company, or also do some work for themselves will always have to file a tax return.
In addition to the above, you must also file a tax return if:
• Your income or your partner’s income was more than £ 50,000 and some of you claimed Child Benefit.
• If your annual income was more than £ 100,000.
• If you made gains from the sale of shares, sale of real estate or other receivables.
• If you are a director of an organization (other than a non-profit organization) and you did not obtain any additional benefits, such as that of a vehicle assigned by the company.
• Has income from abroad or lived abroad and had income in the UK.
• If you have stock dividends and in addition, you are a taxpayer at the highest or additional tax rate.
• If you have a trust or a registered pension plan.
In addition to all of the above, also any money that has not been “taxed at the source” must be declared on a tax return form.
To be better understood, when talking about money that has been “taxed at the source,” it refers to taxes that have already been withdrawn from employees’ salaries or, from bank interest paid into United Kingdom banks, which have already been taxed.
Let’s Talk Tax
Questions? Need tax services and personal advice?
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