Dumb Question - Tax

[stupidcontractor]

Hello,

I'm a complete newbie to the contracting tax world. Please don't flame me too much (or is that a tradition on this board?) for the follwoing question(s):

I am with Giant and have been for nearly a year. I need to do my tax return. My life is quite simple and I just have the one source of income, so I'm loathed to have an accountant do it (or Giant who charge £250 for the priviledge) as it must be simple.

I've had a look and see that I can do my tax return on-line and it does all the calculations. However, I'm confused as to what exactly I'm supposed to put in the form as I'm being paid dividends and also a salary (the latter, I imagine, has already had the NI and tax paid?)

I'm not a total dummy :-) but I'm suffering the same brain freeze-up that occurs when non-computer people sit in front of a computer... tax is VERY taxing for newbies like me...

Stupid Contractor

[Pondlife]

If this is for the 05-06 tax year then this should already have been submitted if you want them to calculate the tax owed.

I would suggest you talk to Giant about this (and find out why it's not included in the fee)

[Nixon Williams]

Help is at hand

The gross salary is entered in box 1.8, the tax deducted in box 1.11

Dividends are entered in box 10.15, the tax credit in box 10.16 and box 10.17 is 10.15 + 10.16

Remember to include other income such as interest etc and details from any P11d's.

You should be sure that you have everything on the tax return, but you can get a tax return done for a lot less than £250!

[IR35 Avoider]

If you do the tax return online on the Inland Revenue's site they will calculate the tax.

The missed deadline only applies to people sending paper returns in the post.

[gravesendboy]

Hidden costs

Most accountancy firms include this as part of their service and if your only source of income is from the limited company , then it should take your accountant 5 minutes to complete it
You need to be careful when signing up to ensure they do not have hidden costsand if they do .... MOVE

[tim123]

Most accountancy firms include this as part of their service and if your only source of income is from the limited company , then it should take your accountant 5 minutes to complete it
You need to be careful when signing up to ensure they do not have hidden costsand if they do .... MOVE

I think you'll find that most don't include this as part of the inclusive fee.

And also, it is not a company expense and as such the fee that you accountant does charge you to do it, is not deductable expense against the company's tax.

tim

[boredsenseless]

I think you'll find that most don't include this as part of the inclusive fee.

And also, it is not a company expense and as such the fee that you accountant does charge you to do it, is not deductable expense against the company's tax.

tim

Good point, and any accountant including this in your companies fee actually can open you up to a P11D entry as your company is providing you with a benefit that has a real cost.

Better to have a seperate invoice from your accountant for your personal liabilities

[Ivor1]

Do it online with its a piece of pi**, if you want to try and play around before doing it online try this site http://www.taxcentral.co.uk/taxcentr...rn/default.asp , here you can register and play around with the figures before submitting anything.

I was with GIANT (first day to day as my own Ltd though ), if as a result of your dividends the majority of your tax ends up not being paid at source, you will have to pay your tax on account, so first time you would pay the tax you owe for the previous tax year PLUS 6 months worth of tax for the current year. I hadnt factered this in (the tax on account) so the first tax bill I got of £21k was a bit of shock (£14k tax owed plus £7k on account). The link above will tell you if you need to pay on account,

[stupidcontractor]

Thanks everyone for answers on this matter. Much appreciated!

sc.