Limited Company Tax Return Issue
I am in the process of filing my first year accounting period for my limited company and after spending many hours of reading all the information on HMRC’s website and speaking to HMRC on the phone, I am more than a little confused as to what forms I should be filing in addition to the CT600. Am I an employer who employs myself? How can I be self employed and also an employee??
Firstly, enlisting the services of an accountant is not an option for me as I simply can’t afford one but seeing as my accounts are extremely simple and I have done my own tax returns before, I should be able to get my head around this...if someone is kind enough to spare a little time to explain things in basic plain English
Here’s the background: I have been self employed for many years, (sole trader basis, no employees, just me!) And have always done my own book keeping/accounts/tax returns. In April 2011 I had a career change and began working from home as a virtual customer service advisor. The work is provided via a company called Arise. This is on a self employed basis and you must set up a Limited Company. Basically, Arise pay me for the hours I work, paid into my business account, and this is what I use for my wage and to cover any expenses.
I keep my accounts very simple. There are a number of expenses I could claim (percentages of this & that) but don’t because my income is low and so is the amount of tax to pay, so I just don’t see the point in complicating things for the sake of paying a few pounds less in tax.
Accounting period is for 01/04/2011 to 31/03/2012
Revenue 7507.90 - total of all payments received from Arise
Wages 7068.00 - amount paid to self, purposely kept below the employee thresh holds for tax and national insurance, to keep the accounts simple and perfectly acceptable considering the amount of revenue anyway.
Expenses 344.93 - the only expenses claimed are those necessary for me to do my job (computer equipment/software/repairs & printing)
As you can see the accounts are very simple...and income very low, hence the reason why I have to (and want to) do this myself.
So, I have completed the CT600, using the software provided by HMRC. Fairly straight forward, although I was thrown by the ‘accounting policies’ part and probably haven’t done that quite right.
The question now is what other forms do I need to fill in to complete the process? I have received a SA103 but I’m not sure that this is the correct form to file. I have phoned the corporations tax office a few times for advise but based on their information I should be paying contributions for my employees, doing something about directors dividends, filling in self assessments, filing a self employed tax return and requesting employee tax codes (???)
Please, will someone just point me in the right direction, then I can get it right, pay what I need to and forget about it for a year!
- Taxfiler - SA100 - More efficient? 582 5
- See you all on the other side 669 6
- 12Pay 432 2
- dividends 575 2
- R&D 304 1
- Quarterly Reporting - The Logistics 1,159 17
- Auto enrolment contribution rates 430 3
- How long are you waiting for appeal reply 388 4
- Borrowing money to loan to company 358 1
- Mother as Guarantor for Son's mortgage 534 5
- Seeking a tax case 631 9
- When do we qualify for state pension? 490 4
- Companies house strike off 512 3
- Tax treatment of alterations to property 409 2
- Moving to the cloud 729 9
- Iris open space/doc exchange for SATRs 210 2
- How much to charge for payroll? 884 16
- Unincorporated charity transfer to CIO 202 4
- BTC vs Digita 1,087 29
- Has anyone tried calling HMRC to get tax on dividends put in code? 481 4
- HMRC Joint Filing 556
- Capital Contribution towards a company car 418
- Capital Reduction & Impact on EIS Shares 367
- IRIS and FRS 102 352
- Capitalising Finance Lease 318
- USA help 314
- National Minimum Wage issue on Directors joining a Workplace Pension 293
- Dormant company accounts under FRS 102 285
- Marginal rates of tax 264
- Capital gains on rental property 260