Self assessment (personal tax return)

rja211077

I have never done a personal tax return because my financial affairs have never been complex enough. Well that was the case until June 2008 when I left permanent employment and became a limited company contractor (and hence director).

So in tax year 07/08 I had the usual PAYE income + a very small amount of dividend income from shares only (£100 or so) only. No rental income or anything like that.

In tax year 08/09 the situation will be a lot more complex.

Am I right in thinking that because the upcoming self assessment deadline (Jan 2009 for online returns) is for tax year 07/08, when my affairs were simple, I don't need to do a return this time?

HMRC has not asked me to do a return for this deadline. Will they automatically ask me for next year (based on the fact that they know I'm a director now) or should I register myself. When?

appreciate your help. Please put my mind at rest.

BoGoF

From what you have said you will not be required to complete a Tax Return for 2007-08 but as a director you will for 2008-09.

As a director you should automatically be put into the Self Assessment system and a Tax Return issued next April. However this is not always guaranteed - have you not receive a letter informing you of your Self Assessment UTR?

Pennywise

Have you told them you are a director - they'll only know if you tell them.

Susan_Frost

If you are self employed, you will also need to contact the office for National Insurance to inform them. You will probably pay around £10 per month standard rate plus 8% of your nett income after you have done your yearly tax return. The Tax Office put all this on their bill so it is all in one place.

The thing is: if you dont inform them, you will eventually have to pay back dated contributions, but also future benefits will be affected, including state pension. So keep up to date with it all.

It was just a thought, in case you were unaware.

I have found both the Tax Office and National Insurance very helpful if I have phoned for explanations of how things work.

Good luck with your new business.

4nick8

If you are a director of a limited company you are an employee not self-employed.