We supply a service to complete and submit your personal self-assessment tax return. If you would like us to help you with yours please just sign-up to our service online. If you would rather do your own personal tax return, then this guide will provide you with the basic information you need.
BEFORE YOU START: a few things you should know;
(1) The UK personal tax year runs from 6 April through to 5 April.
(2) Every person who was a Director of a UK ltd company at some point in the tax year will MOST LIKELY need to file a personal tax return. There might also be other reasons why you need to complete a personal tax return – you can see more on this here.
(3) Your personal self-assessment tax return (and any payment) is due by 31 January following the end of the tax year (so you have have approximately 10 months after the tax year ends to get this done).
(4) HMRC provide a free online service to complete your personal self-assessment tax return. If any tax payment is required, you can make this using Internet Banking.
Step 1: Getting registered for self-assessment
To complete a self-assessment tax return you will need a 10 digit UTR (Unique Tax Reference). This is your own personal tax identification reference. Often the HMRC will notice you have become a Director through your company tax records, and will contact you accordingly with your UTR. If this has not happened, you will need to arrange to get a UTR yourself. Please take a look at our guide Personal Tax set-up made easy for more information on this.
IMPORTANT: Step 1 can take anywhere between two weeks to three months! Make sure you give yourself plenty of time.
Step 2: Getting the information you require
We will supply you with a summary of your salary earnings (a P60 or P45), your dividend voucher, and a summary of any taxable benefits paid on your behalf (P11D) if you have any. This information covers all earnings you received from your company, and will be the only earnings figures relating to your company that you will need.
If you received any other UK income (ie savings interest, property income, PAYE salary) you will also need to collect this information before preparing your personal tax return.
Step 3: Preparing to submit your tax return
We strongly recommend you file your tax return online. You can either use 3rd party software (see here for the HMRC approved list), or the free HMRC online filing service.
To complete the online registration you will need your 10-digit UTR, and EITHER your National Insurance number, or your residential postcode (which must match what HMRC hold against your UTR record).
Step 4: Tips for completing your tax return
Each software is different, but usually you will asked about all the different types of income you earned over the tax year, and then you will be asked to fill in the specifics for each type. For your ltd company you will have;
(a) Employer section. There will be a question similar to 'Were you an employee (or director or office holder) during the tax year'. Answer 'Yes' if you received salary income from your business (you will have either a P45 or P60 issued by us from your ltd company). You may have also earned a salary from another employer during the year if you started/finished contracting partway through the tax year.
The P60/P45 issued by us will have all the earnings information you need to complete the Employment page of your tax return.
You may also be asked 'Were you a Director of this company' - in which case the answer is usually 'Yes'. And then you will be asked 'Was this company a close company' - and the answer is usually 'Yes' here again (broadly speaking a company is "close" if it is privately owned and controlled by five or fewer individual participators).
You may also be asked a question such as 'Have you received any taxable benefits and expense payments from your company ?'. If you were issued a P11D by us from your ltd company then answer 'Yes' and complete the details as per what is on your P11D.
(b) Dividends section. There will also be a question similar to 'Did you receive any dividends, for example, UK companies, authorised unit trusts, open-ended investment companies, foreign companies'. Answer 'Yes' if you received dividend income from your business (you will have dividend voucher issued by us from your ltd company). Complete the box labelled 'Dividends from UK companies' with the dividends from your dividend voucher (if you received dividends from other UK companies you must also add these here).
Step 5: The final act
Ensure that you double check all information entered in the ‘Check your return’ section before submitting the return. Select ‘View your calculation’ to see what tax you owe.
Once you have completed and submitted your return online, we recommend that you eitherdownload a copy of your completed self-assessment tax return,or you print off a copy.