What is a Self Assessment tax return?
A Self Assessment tax return is used to calculate how much tax you owe from the earnings you declare on the form. Filling in a tax return correctly will ensure that you pay the correct amount of tax.
Do I need to complete a tax return?
The main reasons for having to fill in a tax return are:
- You are self employed
- You rent out a property
- You are a Company Director
- You are employed and have work related expenses of over £2500 in any one tax year – meaning you can claim back a tax rebate on those expenses.
When will I receive my CIS tax rebate?
Assuming we have a full years paperwork from yourself we can prepare your tax return ready to submit to HMRC within 24 hours. Once submitted it usually takes between 1 and 3 weeks to get your tax rebate. This timescale does depend on how quickly HMRC process the tax return.
How much will I get back?
The rebate you receive will depend on how much you have earned and how much tax you have had deducted during the year. Once we have your full paperwork for the year, we can give you a tax rebate figure within 24 hours.
How will I receive my tax rebate?
Your tax rebate will be paid by HMRC to us. We will then forward it onto you after deducting our fees. We will contact you a few days prior to us receiving the rebate and asked to provide your bank details so that we may forward your tax rebate onto you without any delays.
What paperwork do I need?
As a very minimum, we would require your bank statements for the tax year. These will provide us with a total of your earnings. Download a copy of our Tax Return Checklist to see what other paperwork we may need.
What expenses can I claim for?
Anything you’ve had to pay for to be able to do your job. We’ve put together a list of expenses you can claim for if you are self employed so you can better understand what you can claim tax relief on.
Can I complete my tax return myself?
Yes, anyone can complete a tax return themselves. You don’t need to have an accountant to help you but it can be more cost effective and reduce the risk of costly mistakes.
If you use an expert, the fee you pay could be easily outweighed by knowing that your tax return is completed correctly. In addition it’s common for our clients to get a higher CIS tax rebate by using our service, with no comeback from HMRC, than if they were to submit it on their own. If you would like us to help with your tax return contact us today.
FAQs for Limited Company
If you are considering going limited, why not read our ‘Have you considered going Limited?’ page. It demonstrates example tax savings you may make, and the benefits.
Will it cost more to become a Limited Company?
No, the exact opposite. You’ll end up with quite a bit more in your take home pay. Contact us today for a free, no obligation consultation and we can advise how much you could save.
How much work is involved setting it up & how long does it take?
None. VW Taxation do everything as part of the service & ensure every aspect is comprehensively dealt with. If you instruct us today, you will be trading as a limited company in as little as 3 weeks.
Will the company I am working for have a problem with me paying me if I am a registered as a Limited Company?
No. A lot of contractors are now to requesting their subcontractors to become limited, so it could increase your chances of getting work. If you want us to talk to them on your behalf, we are happy to do so.
What information will the company I work for need from me once I am set up as a Limited Company?
All companies are different, but generally your new Unique Tax Reference Number and new company name.
Do I need a business bank account?
No, this is not a legal requirement and you can continue to trade using the account you currently use.
Do I still get a Tax Rebate?
Yes, you will be deducted CIS tax in exactly the same way as you are now, but the rebate is claimed slightly differently and can be paid later, rather than in April. We will manage all of this on your behalf.
What happens to the sole trader tax I have paid so far this year?
At no extra cost, we will submit your sole trader tax return as before, and once the return has been completed and rebate issued, we will close the account for the ‘sole trader’.
Can I go back to being a sole trader if I change my mind?
Yes, and we are happy to assist with this. However in our experience, all of our clients who have become limited are 100% satisfied with the transition.