Reply to: Self Assesment Tax Form

[ASB]

On a related question! I have filled these things in before, already registered online from 5 years ago, but the first time I've done one whilst contracting.

The final bit of my 06/07 return is for Giant. I assume this is still under the 'employment' section, and not 'self employment'? As I was only a director of the Giant company. Next, there is a questions about was it 'closed' I didn't understand the question, but I assume this does not apply either?

I realise the usual people will make out I'm stupid, and I already anticipate this.

You should know if it was employment or self employment. That depends on your arrangements with the company of course. The director bit is definitely employment. If you don't know what arrangements you had with the company it is rather unlikely they are self employment.

I can't tell you if it was a closed company. As a director you really should know that - ask Giant. It would be suprising if the answer was not yes - HMRC will probably have a definition of a close company for you to check if you look on their website.

[Jason D]

Ah yes, but what if the accountant provides this as a free service? I should really put a BIK value of zero on my next years SA shirley...

The Revenue use the highest going rate as the BIK so that's an absolute no-no.

[rawly]

On a related question! I have filled these things in before, already registered online from 5 years ago, but the first time I've done one whilst contracting.

The final bit of my 06/07 return is for Giant. I assume this is still under the 'employment' section, and not 'self employment'? As I was only a director of the Giant company. Next, there is a questions about was it 'closed' I didn't understand the question, but I assume this does not apply either?

I realise the usual people will make out I'm stupid, and I already anticipate this.

[Bluebird]

I have left all of it to the umbrella myself and steered clear of dodgy expense claims and subsistence.

I think you'll find the two highlighted bits appear in many sentenses - and not in a positive way....

[IR35 Avoider]

Ah yes, but what if the accountant provides this as a free service?

I would guess that a free service from a supplier is still a BIK that should be declared according to what it's worth, even if not explicitly charged for.

[ratewhore]

The cost isn't tax deductible. If your company pays for the tax return, then its a B-I-K and you'll have to declare it on a P11d and your SA return for next year. Making life more complicated.

Ah yes, but what if the accountant provides this as a free service? I should really put a BIK value of zero on my next years SA shirley...

[damo111176]

I find it astonishing that someone who is a contractor can be this naive......or is this a piss take?

I think that's a bit harsh. SOme people contract because its the only work available for reasonable money at the time and a few years ago MSC's such as Giant were all the rage, people had to do very little to sign up and then get paid the same as a limited company. THen when legilsation changed many not wanting the paperwork and responsibility of a limited company or caught by IR35 went to umbrellas. At no point do many want to get caught up in all the tax issues hence why they have operated the way they have.

I have left all of it to the umbrella myself and steered clear of dodgy expense claims and subsistence.

[Sausage Surprise]

Hello All,


I have recently received a self assessment tax form from the HMRC, this is the first time i have had such a form and I'm not quite sure how to complete it. I currently contract through Giant who handle the majority of my finances although i still have some question in regards to filling out this form.


Should i invest in any accountant? how much do they normally charge?

Currently Giant charge £250+VAT to complete this, so a Christmas prezzie for the most helpful!

Q1.
Which tax year are they requesting?! i was working under Giant PowerHouse as a company director from Oct 06 to April 07 - i have P60 for.which then was stopped in April 07 thanks tot he budget change.Are they asking for all my history? or just up to April?

I find it astonishing that someone who is a contractor can be this naive......or is this a piss take?

[NotAllThere]

She probably meant the EB should pay for it.

[Bluebird]

Really?

I didn't think so either....

...but am always open to "creative accountantcy"

[Alan @ BroomeAffinity]

The cost isn't tax deductible. If your company pays for the tax return, then its a B-I-K and you'll have to declare it on a P11d and your SA return for next year. Making life more complicated.

[NotAllThere]

The cost is also tax deductable, so that lowers the cost even more.

Really?

[xoggoth]

But you have already paid for the information necessary. Who fills in your forms in April and July? P11D, P35, P14 etc and dividend calcs? You should have been sent copies. That's most of it. Details for interest on any bank accounts, dividends for companies other than your own should also have been sent by the companies concerned.

[Denny]

Hello All,


I have recently received a self assessment tax form from the HMRC, this is the first time i have had such a form and I'm not quite sure how to complete it. I currently contract through Giant who handle the majority of my finances although i still have some question in regards to filling out this form.


Should i invest in any accountant? how much do they normally charge?

Currently Giant charge £250+VAT to complete this, so a Christmas prezzie for the most helpful!

Q1.
Which tax year are they requesting?! i was working under Giant PowerHouse as a company director from Oct 06 to April 07 - i have P60 for.which then was stopped in April 07 thanks tot he budget change.Are they asking for all my history? or just up to April?

You should be able to get an accountant to do this for around £100 or not much more. Giant are charging far too much. My accountant has said it costs £90 which I think is reasonable. Normally, I do it myself. The cost is also tax deductable, so that lowers the cost even more.

If you are unsure how to fill it out, then get an accountant to do it. Better that then muddling through it yourself if you're not that confident you can do it properly. It does take up a bit of time, and loads of instructions are a bit of a bind. Also, crossing through answers to rectify mistakes could attract unwanted attention from a beady eyed inspector because HMRC may well assume you are fiddling the figures not making a genuine mistake. Who needs that? There's nothing worse than getting a flurry of buff envelopes on the mat demanding answers to seemingly unanswered questions.

[Gonzo]

£250 seems a bit steep - the going rate seems to be about £100 - we are talking personal tax? The tax returns may look complicated but they're not that hard to fill in.

If you register to fill in online via the HMRC web site it is even harder to go wrong.

But a few points will need qualifying on that:

1. It is getting a bit late to do that before the deadline now, it takes a few weeks to get the registration sorted.
2. If your tax affairs are more complicated than the basic, employee with extra interest and dividend income then I don't think that you can use the online service.
3. My knowledge is a couple of years out of date because the accountant does this now.