Method Accounting
Method Accounting

Self-Assessment update

4 July 2016

Self-Assessment

Self-Assessment update

Now the end of the 2015/16 tax year has passed, thoughts must turn to personal income tax.

As a reminder, the tax year runs from 6th April to the following 5th April. The last tax year ran from 06/04/15 to 05/04/16. If you need to submit a Self-Assessment return, you have until 31/10/16 to file a paper return, or 31/01/17 to file an online return.

Any liability for income tax needs to be paid before 31/01/17 together with any payment-on-account (if applicable). The second payment-on-account (if applicable) will need to be paid before 31/07/17.

HMRC has the power to charge fines and penalties in respect of late or non-filing of a Self-Assessment return or payments.

Your accountant is available and keen to help – please ask.

Do you need to register for Self-Assessment?

You’ll need to send a tax return if, in the last tax year (i.e. from 06/04/15 to 05/04/16):

  • you were self-employed
  • you got £2,500 or more in untaxed income, e.g. from renting out a property or savings and investments
  • your savings or investment income was £10,000 or more before tax
  • you made profits from selling things like shares, a second home or other chargeable assets and need to pay Capital Gains Tax
  • you were a company director
  • your income (or your partner’s) was over £50,000 and one of you claimed Child Benefit
  • you had income from abroad that you needed to pay tax on
  • you lived abroad and had a UK income
  • you got dividends from shares and you’re a higher or additional rate taxpayer
  • your income was over £100,000
  • you were a trustee of a trust or registered pension scheme
  • you had a P800 from HMRC saying you didn’t pay enough tax last year

Generally, clients of Method Accounting should register for Self-Assessment on the basis they are a company director.

If you became a company director after 05/04/16, there should be no reason to register for Self-Assessment for the 2015/16 tax year – it’s likely you will need to register next year, however. If in doubt or wish to discuss further, please talk to your accountant.

You should register for Self-Assessment by 5th October following the end of the tax year.

Registering for Self-Assessment can be done via this link.

Complete the top ‘About you’ section with personal details. At ‘Why do you need to complete a tax return’ simply tick ‘I’m a company director’ and insert the date you were appointed a director (which is usually the incorporation date of your company). Scroll to the bottom of the form and complete the ‘Declaration’ and press ‘Next’.

Please pass on any correspondence received from HMRC to your accountant, they will be able to assist with linking Method Accounting as your tax agent, prepare your income tax computation and prepare and submit your Self-Assessment return.

Personal taxation, by its nature, is unique to the individual. Your accountant will need to ask you questions and gather information about your income for the last tax year. Please give all information requested and answer all questions fully and truthfully.

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Our bespoke and highly tailored service is specifically geared to help you manage your finances simply and tax efficiently. With our versatile online portal, available 24/7, you can stay in control and up to date whenever you want and wherever you are. Our online portal and professional service therefore combine to give you minimal hassle and maximum support.

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