Tax returns
Tax return services
After starting trading, a business must register their business for tax returns:
1. a sole trader must register for and file a self assessment tax return to HMRC or faces a penalty for not registering or filing their tax return
2. a partner in a business partnership must also register for their own self assessment tax return with HMRC, same as the sole trader. A nominated partner must also register their business partnership for a partnership tax return in addition to their own self assessment tax return by the same deadline
The deadline for a self assessment tax registration is 5 October after the end of the tax year. There may be a penalty for not registering and for late registration.
3. a limited company registes for corporation tax return instead within 3 months of starting business. Corporation tax return late registration may also be penalised
Our tax return services cover the registration and submission of your tax return. In addition, our fees are affordable and our services are friendly and reliable.
Do not hesitate to contact us if you have further query about our tax return services.
Tax return registration
As part of our tax return services, we will help you with your tax return – self assessment and corrporation tax registration.
If you decide to start as a sole trader, then you must register for your self assessment tax return with HMRC by 5 October after the end of the tax year. So if you start trading between 6 April 2021 and 5 April 2022, you must register for your tax return by 5 October 2022.
You may, however, choose to start your business with someone such as friends or relatives and set up a partnership instead and you are a partner in your business partnership. A partner must also register for a self assessment tax return similar to sole traders. And if you are a nominated partner, then you must register your business partnership tax return in addition to your self assessment tax return. The deadline for registering a partnership tax return is the same as of those sole traders. Each partner in the partnership will be responsible for registering their own self assessment tax return.
Besides, a landlord who rents out a property may need to register and file their self assessment tax return too. However, with the rent a room scheme, landlords can rent out a furnished room in their own home to a lodger free of tax if the rent received is not more than £7,500 per year (current threshold). In this case, the landlord will neither need to register nor file a tax return. There is no need for them to report this rental income either.
If the rent they receive is over £7,500 per annum, then the landlord must register and complete a tax return. However, they can opt into the rent a room scheme and claim the £7,500 tax-free allowance on the tax return. Further, a landlord whose rental income from their room is less than £7,500 can choose not to be in the scheme and file a tax return by including their property income and expenses on the property pages of their tax return instead.
There are penalties both for not registering and for late registration.
Tax return submission
A sole trader, self-employed person, business partnership and each partner must file their tax return annually either on paper or online. The deadline for filing self assessment tax returns is generally by:
a) 31 October after the tax year if it is a paper return; or
b) 31 January after the end of the tax year for online filing
While sole traders, self-employed individuals and each partner in a business partnership (who is not a nominated partner) are responsible only for their own self assessment tax return registration and submission, a responsibility for registering and filing a partnership tax return rests with a nominated partner (in addition to his own tax return registraion and submission). While a general, unlimited partnership must have one nominated partner, a Limited Liability Partnership (LLP) is required to have two designated members.
Employees, including company directors, who earn £100,000 or over are required to do a self assessment tax return.
Failure to file a self assessment or corporation tax return by the deadline will result in an automatic fine of £100. Our reliable tax return services will help you the submission of the tax returns.
Making Tax Digital (MTD) for Income Tax
Making Tax Digital for Income Tax (MTD for ITSA) will replace the annual Self assessment tax returns. It requires businesses to:
1. keep digital records
2. use MTD-compatible software
3. submit quarterly updates within one month of the end of the standard quarterly period. A late submission penalty may be imposed if it is not sent by the deadline
Being postponed from April 2024, the MTD for ITSA will come into effect from:
a) 6 April 2026 for self-employed individuals or landlords with annual business or property income of over £50,000
b) April 2027 for those with annual business or property income of over £30,000
A taxpayer with more than one business (e.g. both a landlord and a designer) must keep separate records and make separate submissions for each business. A landlord who receives property income from multiple properties will treat:
1. all UK properties as one UK property business; and
2. all properties that are outside of the UK as one oversears property business
A final declaration must be made by 31 January after the end of the relevant tax year. A late submission may be penalised if the deadline is missed.
Corporation tax return
For a limited company, a director is responsible for submitting its company tax return to HMRC, normally 12 months after the year end of the company. Failure to file a corporation tax return by the deadline will result in HMRC issuing an automatic fine of £100.
Directors with only employment income of less than £100,000 and no other income need not register and complete a tax return. They will, however, have to register and file their self assessment tax return if they receive other income such as dividends or property income (in addition to their employment income).
Our tax return services can be customised to suit your needs, for example, if you only look for corporation tax return services.
Our tax return services
M&W Accountancy Services is a team of qualified accountants with years of experience in helping clients with their tax return needs such as registering and filing their tax returns, both self assessment and corporation tax returns. Our tax return services, which are affordable, flexible and very reliable, include:
1. self assessment tax return registration and submission for sole traders
2. partnership and each partner tax return registration and submission
3. corporation tax returns registration and submission
4. tax returns advice
If you look for or require tax return services, contact M&W Accountancy Services, accountants for small and very small business in Bracknell, for our superb services.