You can call us to arrange a free no obligation meeting or maybe some of your immediate questions have been answered below:
I am starting my own business and so will be self-employed. Do I need to tell HMRC?
Yes. If you’re planning to become self-employed, you will need to notify HMRC, and they will then issue you with a unique tax reference number and enrol you onto the self-assessment system.
The HMRC website is quite helpful – they explain everything you need to know, mostly in plain English! Alternatively you can come by our offices for a free exploratory talk and one of our experts will run through what you need with you.
Do I need to complete a self-assessment tax return and if so, when?
The self-assessment tax return is an annual form that HMRC issue, either in paper format or to be completed online. You need to complete if, in the last tax year:
you were self-employed
you earned £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 - unless it was for a non-profit organisation (e.g. a charity) and you didn’t get any pay or benefits, like a company car;
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 form from HMRC saying you didn’t pay enough tax last year - and you didn’t pay what you owe through your tax code or with a voluntary payment.
This seems like a complex list and it is, if you’re not used to dealing with it! Many of our self-employed clients prefer to leave all the calculations and form-filling in our capable hands.
When is the tax year?
The tax year runs from 6th April to the following 5th April.
When does a self-assessment tax return have to be filed?
A paper return needs to be submitted to HMRC by 31st October and an online return to HMRC online by 31st January – the October and January after your tax year ends.
All this sounds more than I want or have time to deal with. What do I need to provide you with at Holmes Accountancy so you can complete my accounts and/or Tax return?
This will depend entirely on the type of income you receive during a tax year. However whatever that is, we get in touch with you in plenty of time with a shopping list of what information we need, plus any other necessary reminders. If you’re still unsure, all you need to do is drop us an email or give us a call and we can usually advise you straight away - and put your mind at rest.
My business has grown now and I want to employ someone, but I’ve heard that you need to be a company to do that?
Not true: anyone can employ people.
However it gets more complex from there. You will need a PAYE (Pay As You Earn) scheme to enable this, even if you only have one employee.
You will also need to notify HMRC, each pay period, of the amounts being paid to your employees and what tax was stopped.
You’ll be pleased to know that we offer a full payroll service to take this headache away from you…
Should I be VAT registered?
If your business turnover exceeds £85,000 in any 12 month rolling period, then you will need to register for VAT whether you like it or not.
However, you can still register for VAT voluntarily if you decide this is best for your business – and it can be, depending on a number of issues.
As a Holmes Accountancy client if you find yourself wondering about this one, you can simply drop by our offices for a talk with one of our team and get our advice on the advantages and disadvantages for your business of being VAT registered.
Should I trade through a Limited Company?
A business can trade in a number of different ways. It all depends on the type of business and your trading circumstances.
As you can imagine there are no simple yes or no answers, so your best option is to have a chat with us. We can walk you through the different and most tax efficient options to help you make an informed and appropriate choice.
I incorporated my company last year and now Companies House have sent me a letter about my Confirmation Statement? What is this and am I in trouble?
Not yet, but as a Holmes Accountancy client you need to get in touch with us quite quickly.
Companies House ask limited companies to file an annual document advising of any changes made to the company within the year.
This form needs to be completed on each anniversary of incorporation of the company and you have 14 days to complete this information.
The penalties for failure to file can be large, so keeping on top of this task is a must! But don’t worry; we will be there to support you with it.
I want to sell my house but I’ve been warned about Capital Gains Tax. Will I need to pay this?
Capital Gains Tax is a tax chargeable on a profit made between the purchase and sale price of an “asset” (e.g. an owned possession.)
You do not have to pay this tax when you sell your “principal private residence,” – your main home.
However if you own additional property (like land, commercial property, holiday home, etc.) you may well have to pay Capital Gains tax if you sell it.
As a Holmes Accountancy client you’ll have the most up-to-date advice and guidance on whether or not you’re liable to pay this tax, and what options there may be to minimise it.
Contact Us
If your question isn't answered above call Susan and the team on 01908 315 716 or email susan@holmesaccountancy.co.uk and let’s arrange a free, no-obligation discussion so you can see how Holmes Accountancy will truly leave you free to do what you’re good at.