Self Assessment Tax Deadline: What you need to know

As we fast approach the January 31st Self Assessment Tax Deadline, here’s a reminder of what you need to do with regards to your tax obligations.

Do I need to submit a self assessment tax return?

Yes, as a Director of a UK Ltd Company you are legally obliged to file a self assessment tax return each year. Your tax return and any tax due must be submitted and paid electronically by 31st January 2017.

If your total personal income takes you into the higher rate tax bracket (this means your income exceeds £42,385 for the tax year 2015/2016 (6th April 2015- 5th April 2016)) you will have a personal tax liability to pay by January 31st 2017. This is separate and in addition to your company tax liabilities.

Personal income includes salary and dividends from your Ltd Company as well as any income outside the company such as rental income, pension Income, savings interest or any other income you may have.

When is my personal tax liability payment due?

Any self assessment tax liability must be paid by you personally, to HMRC by 31st January 2017. If you opt to pay the liability using funds held in your company, you should advise your Client Manager whether you wish for this transaction to be classified in the accounts as either a dividend or directors loan.

What are payments on account?

If your self assessment tax liability is greater than £1,000, HMRC require you to make “payments on account”. You are required to make 2 payments on account within the current year.

These payments on account equate to one half of your 2015/2016 self assessment tax liability, and are paid in January and again in July.

The payments made go towards your following year’s tax liability. Please note, if what has been paid leaves an amount against what is due, a balancing payment will be required. If you require any further information on how to make the payment, please contact your Client Manager.

More Posts

Basis Period Reform

The article helps self-employed sole traders and partnerships to understand how basis period reform will impact their business in the 2023/24 transitional tax year, and what steps need to be taken to ensure they do not lose any brought forward tax reliefs and remain compliant!

George Ian Hope

Tax Payment Dates and Estimating the Values of Tax Payable

The article outlines the typical tax payment dates and methods of estimating the values of tax payable for each type of tax, including VAT, PAYE, NIC, CIS, Corporation Tax, and Dividend and Personal Taxes.

George Ian Hope

Corporation Tax Rate Changes

In the March 2021 Budget Rishi Sunak proposed a number of changes to the way that Corporation Tax will be calculated and applied and these changes will come into effect from 1st April 2023.

George Ian Hope