Tax return

gerardflanagan

I think I need to do a tax return and was wondering if anyone could help?

• I started renting a flat out in Feb 2016
• I've run a ltd company since about June 2015, which has had no revenue and I am going to have struck off soon (i.e. shut down).
• I bought £1000 in Sugru through EIS so am entitled to a tax rebate.
• I'm a salaried employee (unrelated to my ltd company)

What is the best way to approach resolving this? Do I need an accountant or can I do it myself?

Thanks

booksurr

you need an accountant otherwise you would not need to ask these questions!

the company started in June 15 so needs to both do accounts (for its first accounting period which in effect will be to its date of dissolution) and submit a nil corporation tax return. The latter within 9 months of the accounting period date.

you may or may not be capable of doing the 15/16 SA for the rental profit and the EIS yourself (if it was 15/16), we don't know what you know.

dori2o

gerardflanagan wrote: »

I think I need to do a tax return and was wondering if anyone could help?

• I started renting a flat out in Feb 2016
  can you advise what the ANNUAL gross rents and estimated profits will be
• I've run a ltd company since about June 2015, which has had no revenue and I am going to have struck off soon (i.e. shut down).
  Did the company ever actually trade
• I bought £1000 in Sugru through EIS so am entitled to a tax rebate.
• I'm a salaried employee (unrelated to my ltd company)is your salary in excess of £100k, or do you need to make any expenses claims, is your salary in excess of £50k and you/wife/partner receive child benefit

What is the best way to approach resolving this? Do I need an accountant or can I do it myself?

Thanks

I'm assuming the EIS claim is for 15/16 so for sure you will need to do a tax return for 15/16 in order to claim the relief.

Looking towards future tax years you may not need to do a tax return if:

You make a PROFIT or BREAK EVEN on your rental AND the GROSS rents from your rental are less than £10k AND the net profit is less than £2,500. If this is the case you can simply report the information to HMRC informally by telephone or letter and a deduction can be made to your tax code to collect the tax from the salary from your employment. To do this you will need to provide an estimate of the rental income at the start of the tax year so that a deduction can be made to your tax code, then provide the actual figure after the end of the tax year.

If your income is over these limits or you make a loss then you will need to do a tax return.

If your Ltd company has never actually traded then you will not need to show this on your tax return (but you will need to update hmrc re CT and ensure the company is closed down). If it traded but you received no income then you will need to show it for 15/16, but as long as it is closed on/before 5 April 2016 then you won't have to do another.

If your taxable income in total is in excess of £50k, you are the highest earner in the household, and you/wife/partner receives Child Benefit, then you will have to do a tax return.

If your taxable income s in excess of £100k then you will have to do a tax return.

As to whether you need an accountant I would say it depends on how confident you are in filling out the pages of the tax return, and how much additional income you are receiving. If its costing more in accountancy fees than what you are receiving in additional net income then personally I"d question the benefit of using an accountant.

All the notes and guidance is available on the gov.uk website and there is plenty of guidance built into the online self assessment file your return system, plus you will be able to use the 'Live Help'/web chat service to get help whilst online completing the form.

One thing you could do is look at the forms now (which will be fr 14/15 but there won't be much change between 14/15 and 15/16) and it will give you an idea of whether you will feel comfortable doing it yourself.

The forms you will need are the SA100, SA101, SA102 and SA105. All are available to view/print from the gov.uk website. Just type each form into the search box and have a look.

Darksparkle

There is also a breakdown of the SA criteria here - https://www.gov.uk/self-assessment-tax-returns/who-must-send-a-tax-return

gerardflanagan

Thanks all for the responses. Dori20, thank you especially for such a comprehensive and well thought out response.