Hi,
I am self-employed (Director of a Ltd Company) and work in the construction industry.
I am trying to complete the company tax return for the first time and I have a few questions please.
Turnover is £27000 and I paid myself £11000 through PAYE. Expenses were £5600.
That means net profit before CT tax is £10400. Is this correct?
If so, these figures will go in the trading account details section of the company accounts and tax return?
What do I then put in the balance sheet and where please (I have no assets nor liabilities and I have used the £10400 personally)?
When I get round to do my self assessment, do I then declare the net profit as profit from self employment (on top of the employment income of £11000 I paid myself through PAYE)? If so, that'll mean I essentially get taxed twice for the net profit, doesn't it?
How and where do I offset the CIS deductions already made against me please? In the company tax return or my self assessment?
I decided to go it alone as I had a bad experience with my previous agent. How much would I expect to get charged to have all this taken care off by an accountant please (company accounts and tax return, self assessment)?
Please help as I need to do this in the next couple of days.
Thank you so ever much.
Related resources
Replies (12)
Please login or register to join the discussion.
Bad experiences aside you need to speak to an accountant. You are unlikely to be able to use the HMRC software to submit your company return since you have taken a loan from the company (that's the £10,400) and will have additional tax to pay on that loan, which I dont think you can include in the HMRC software. You also have a benefit in kind which will increase the amount of tax you have to pay on your employment income, and you will need to calculate that correctly. You may well have cost yourself more in extra taxes than an accountant would have charged to get it correct.
You are unlikely to be able to use the HMRC software to submit your company return since you have taken a loan from the company (that's the £10,400) and will have additional tax to pay on that loan, which I dont think you can include in the HMRC software.
Last time I used HMRC software, yes, you could, actually.
Blimey - where to start? You really need an accountant.
First point - you are not self employed, you are an employee of a limited company. There are so many issues that you are not understanding that I can't see you getting a step by step guide here. I may be wrong but can't see anyone having the time to take you through everything.
Have done my best; but as you have eluded to there are so many issues which only our professional training and continuing professional development ( and I don't mean subscribing to courses ) enable us to make informed decisions.
Dave
I have never come across a non-accountant who has been able to do this. Do yourself a favour and get an accountant. I for one, wouldn't fit my own kitchen, do any plumbing or landscape the garden. I know my limitations. Know yours.
My guess (and it is a guess) is that Monday 31 July, 2017 is a key date for you.
Should I attach this red wire with what looks like a black ring around it to this other red wire or to this black wire or somewhere else? Will it hurt if I get it wrong?
My electrician spent lots of his hard earned money on training to become proficient in his trade; and I trust him.
Is that £11,000 gross or net - you alegedly, have a PAYE scheme so you will know the answer to this?
Are all of your £5,600 expenses allowable taxable expenses? Does it include purchases of a capital nature?
Why does it matter? Explain to me why this red wire should be attached to this or that wire?
Okay, sorted the simple things.
You are in the Construction Industry Scheme. Are you registered as either a Contractor or sub-contractor or neither?
Why did you have a bad experience with your previous accountant? If you didn't answer his/her questions, or didn't like them, then why is your potential new accountant going to be any different?
Self-employed or company director paid through PAYE, or are you trying to mix various income streams?
If you file on Tuesday or later, it may cost you £150 in late filing fees as a minimum. If you find someone willing to act for you expect to pay a minimum of £600 and it will probably be money well spent.
Now which wires do I attach - it is dark in here?
Had a read of that. You said everything that needed to be said. I suppose all that could be added is to say which boxes should contain which numbers. No one here would be foolish enough to do that. The advice can only be offered.
Thanks.
Worried SE - you're absolutely right to be worried.
I may be wrong but I'm tipping that you didn't learn whatever trade you do off an internet forum.
You won't learn how to do your accounts and tax returns either. Have a bit of respect for what we do - we do have skills of our own. If not, we'd have no business.
You're a long way behind the starting line. You don't even recognise your employment status. I accept you've had a "bad experience" - which could be anything from a bigger bill than you expected to gross incompetence - but that doesn't mean you're up to this.
Things to consider
1. I'm guessing you didn't bother opening a company bank account.
2. The company has effectively lent you money. There's a 32½% tax charge on that until you pay it back.
3. You don't claim your CIS tax back on either the company's or your self assessments.
4. You're an employee. Not self employed.
5. It looks like you've not bothered declaring any dividends.
6. Never mind the company tax return for now - you need to prepare the company accounts first.
If I looked through your records, I'd easily double the length of that list.
Are you looking forward to Making Tax Digital and Quarterly Updates ?
I accept you've had a "bad experience" - which could be anything from a bigger bill than you expected to gross incompetence - but that doesn't mean you're up to this.
.. didn't take, or like, the advice being offered is looking like a possibility.
Hopefully you have realised that the advice being offered to get an accountant is sound advice. It may not be what you want to hear and by all means do your accounts and tax returns yourself. After all how hard can it be to put a few numbers in a few boxes?
The reason why you are not getting the answers you want is because there may be other factors that will determine what should be done and without that knowledge no professional accountant is going to give you potentially misleading advice.
The choice is yours; choose wisely and save yourself some money.