Umbrella and tax returns?

[gingerjedi]

I've been operating under an umbrella for a while now because it suited me at the time but as the climate is about to change I've been looking into setting up a limited so to avoid being flamed for asking silly questions I was reading the first timers section on this board and came across this statement:

"If you have decided to trade through an Umbrella Company you would only need an accountant to prepare your Personal Tax Return at year end, and your umbrella Company should be able to recommend one to you."

What’s all that about? I've been contracting under umbrellas for 3 years and never filled one in yet? Should I be worried?

[Nixon Williams]

I've been operating under an umbrella for a while now because it suited me at the time but as the climate is about to change I've been looking into setting up a limited so to avoid being flamed for asking silly questions I was reading the first timers section on this board and came across this statement:

"If you have decided to trade through an Umbrella Company you would only need an accountant to prepare your Personal Tax Return at year end, and your umbrella Company should be able to recommend one to you."

What’s all that about? I've been contracting under umbrellas for 3 years and never filled one in yet? Should I be worried?

If you traded through a composite (MSC) then you should probably be completing a tax return as your dividend income may be subject to some extra tax.

If you are through a simple umbrella and just getting a salary then it is likely that all your income has been taxed at source.

Alan

[gingerjedi]

Thanks for that.