Self Assessment Form

itsme · 18th July 2008, 21:37

I started my Ltd company at the end of February while I was still in full time employment. I did not start earning any money from the Ltd company until the end of April once I had left my full time position.

My accountancy company are telling me I need to fill out an SA form and pay them £125 +VAT as I did not sign up with them until Feb so is not included in the fees I pay!

HMRC have not asked me to complete a SA for last year, and as I did not start working through the limited company until end of April do I need to complete a SA for last year when I was in full time employment? Is it my accountants trying to sting me for more money??

Thanks in advance.

thunderlizard · 19th July 2008, 13:09

I think you need to fill in an SA form just for being a company director, whether you earned any money from it or not.

The taxman won't have asked you to fill one in because he's not psychic and doesn't know you're a company director yet. You'd think there would be some kind of automatic alert he gets from Companies House when you set up the company, but there isn't (thank heavens, but it's only a matter of time I'm sure).

You did sign up with your accountants before the end of the tax year 2007-8, so it is a bit cheeky to say it's not included. Having said that, accountants tend to charge a flat fee per month, despite the fact that the bulk of their work only happens twice a year (company accounts time, and personal tax return time), so in your first year it is not unusual for them to charge top-up amounts like this if you've joined just before one of these dates. Have a look through the accountant's terms and conditions when you signed up, just to make sure it's not covered.

£125 is low for a personal tax return service - and probably takes into account the few months you've already paid for - so you're not being completely ripped off.

I used to do my SA returns all myself and it used to take a full weekend. Now the accountant does them and it just takes a full evening. Of course you still need to add up your income from bank interest, investments etc. and other stuff like GiftAids that the accountant doesn't handle, but they usually simplify things much better than the Revenue's own guidance notes, and you have an expert to ask if you get stuck. You just need to decide whether that help if worth £125, which depends on how flush/strapped you are really.

EvilWeevil · 19th July 2008, 19:36

Quote:

Originally Posted by thunderlizard

The taxman won't have asked you to fill one in because he's not psychic and doesn't know you're a company director yet. You'd think there would be some kind of automatic alert he gets from Companies House when you set up the company, but there isn't (thank heavens, but it's only a matter of time I'm sure).

Oh there is. Despite saying that he never ever wanted to see one of my tax returns again, Hector changed his mind when I started my limited company. And he sent one to my partner as well, and she's never done one before.

Archangel · 21st July 2008, 07:50

Quote:

Originally Posted by thunderlizard

I used to do my SA returns all myself and it used to take a full weekend. Now the accountant does them and it just takes a full evening. Of course you still need to add up your income from bank interest, investments etc. and other stuff like GiftAids that the accountant doesn't handle, but they usually simplify things much better than the Revenue's own guidance notes, and you have an expert to ask if you get stuck. You just need to decide whether that help if worth £125, which depends on how flush/strapped you are really.

Wow, your tax affairs must be complicated! My SA takes me about an hour to do online.

I have my income and dividends from my Ltd company
Income from savings accounts
Pension contributions

and that's about it. The OP was a permie for the year in question, so he probably just needs his P60 and his bank/building society statements and an hour to fill in the form.

Waldorf · 21st July 2008, 22:32

Yeah, I do my own and takes a few minutes, I cannot see what all the fuss is about!

slackbloke · 22nd July 2008, 09:56

Quote:

Originally Posted by itsme

I started my Ltd company at the end of February while I was still in full time employment. I did not start earning any money from the Ltd company until the end of April once I had left my full time position.

My accountancy company are telling me I need to fill out an SA form and pay them £125 +VAT as I did not sign up with them until Feb so is not included in the fees I pay!

HMRC have not asked me to complete a SA for last year, and as I did not start working through the limited company until end of April do I need to complete a SA for last year when I was in full time employment? Is it my accountants trying to sting me for more money??

Thanks in advance.

In theory you have to complete the SA as you were a company director, but it is your responsibility and you are perfectly entitled to ignore your accountant. As your company had not started trading then you would imagine Hector is not bothered (as there is nothing to gain). Not sure about this but thought there maybe some kind of exception if either your company is not trading or the revenue is below a certain amount?
If I was you I would just ignore your accountant and save the money. In theory Hector should know you are a director and the company was not trading at that time (presume you completed a non-trading form when company formed?). They will send an SA request eventually if they want it.

Just1morethen · 22nd July 2008, 10:31

If HMRC have issued the return (which they would appear to have done) then you are legally obligated to complete it whether or not your situation merits it. I know that sounds a bit daft but thats HMRC for you.

£125 doesn't seem bad for a personal tax return especially if, as you say, your affairs are quite complex.

That said, if your affairs are complex, then there may be other reasons why the return was issued. Higher rate tax payer with other income maybe?

slackbloke · 22nd July 2008, 10:44

Quote:

Originally Posted by Just1morethen

If HMRC have issued the return (which they would appear to have done) then you are legally obligated to complete it whether or not your situation merits it. I know that sounds a bit daft but thats HMRC for you.

£125 doesn't seem bad for a personal tax return especially if, as you say, your affairs are quite complex.

That said, if your affairs are complex, then there may be other reasons why the return was issued. Higher rate tax payer with other income maybe?

Read the OP again, HMRC have NOT issued an SA.

TheBigYinJames · 22nd July 2008, 10:48

Quote:

Originally Posted by slackbloke

Read the OP again, HMRC have NOT issued an SA.

If they haven't asked you to complete one, don't go making work for yourself. By all means have the info at hand in case they ask later, but no point volunteering. Sounds like a accountancy just making work for themselves.

Just1morethen · 22nd July 2008, 11:04

oops.... confused OP with one of the replies. Sorry all.

If HMRC have not issued a return and your circumstances do not merit it then you don't need to complete one. If your curcumstances do merit it then you still have a requirement to complete the return whether the return was issued or not. The onus is on you to determine whether or not you need to file.