Self Assessment Tax Returns

Tax Returns for the 2009/2010 tax year are due to be submitted to Inland Revenue by the 31st of October 2010 if you choose to submit a paper return or the 31st of January 2011 for online submissions.


What is Self Assessment?

Income Tax can be collected in a number of different ways depending on the type of income and your employment status. Self Assessment is one of the ways in which tax is collected.

Follow this link to find out more about Personal Income Tax and the ways in which it is collected: http://www.hmrc.gov.uk/incometax/basics.htm

Self assessment tax returns are issued in April each year and cover the year from the previous 6 April to 5 April. For example, the 2009/2010 tax year covers the period from 6 April 2009 to 5 April 2010.

Follow this link to find out more about self-assessment and whether you will be required to complete a tax return http://www.hmrc.gov.uk/sa/need-tax-return.htm

Should you wish for SAIL to assist you in completing and submitting your personal income tax return for the 2009/2010 tax year will require the following information:

• Your full name and current residential address
• Your date of birth
• Your marital status
• Your UTR (Unique Tax Reference) number
• Your NI (National Insurance number)
• Any P45's and P60's issued to you during the 2009/2010 tax year
• Any P11D's (Statement of Benefit in Kind) issued to you during the 2009/2010 tax year
• Any dividend certificates issued to you during the 2009/2010 tax year
• Gross interest earned and tax deducted from savings and investments (normally you will be issued with a certificate of deduction of income tax by your bank or building society)
• Any other income earned (including capital gains, rental income etc.) and expenses incurred in generating this additional income
• Any charitable donations made during 2009/2010
• Any pension contributions made during 2009/2010

You should be able to find your UTR number on your personal income tax return which will be sent to you by Inland Revenue, alternatively you can ring them on 0845 9000444 to obtain this number.

SAIL normally charges £65 plus VAT for the completion and submission of a basic personal income tax return, £100 plus VAT during or after January 2011. If you would like us to complete and submit a personal income tax return on your behalf or need further information on what is required from you, please contact us on 0208 241 3495 or at info@sailsolutions.co.uk

How will the Budget affect your business?
The Chancellor of the Exchequer delivered his Budget statement on 22nd June 2010.

Employers
The Budget announces the following measures for employers:

National Insurance Contributions
Cutting national insurance making it cheaper for companies to employ people. The threshold at which employers start to pay National Insurance will be raised by £21 per week above indexation in April 2011.

A new tax scheme to help create new jobs in parts of Britain outside the Greater South East by exempting new businesses from up to £5,000 of employer National Insurance Contributions payments for each of their first 10 employees hired.

Income Tax
The personal allowance for under 65s will be increased by £1,000 in April 2011, with gains limited to basic rate taxpayers.

Enterprise
The Chancellor said a long-lasting economic recovery must have its foundations in the private sector, not the public sector, and businesses across all regions need the right conditions to be able to grow.

The Budget announces the following measures for enterprise and growth:
A reduction in corporation tax from 28 to 24 per cent over the course of four financial years from April 2011.

A reduction in the small profits rate of corporation tax to 20 per cent from April 2011, instead of the planned increase to 22 per cent.

An increase in Capital Gains Tax from 18 to 28 per cent for higher rate taxpayers, while the entrepreneurs’ relief life time limit will rise from £2 million to £5 million.

To ensure that more small firms have access to credit, the Enterprise Finance Guarantee (EFG) will be increased by £200 million to support £700 million of additional lending until 31 March 2011.

The EFG supports lending to small businesses that find it difficult to access the normal commercial loans.

VAT
VAT will increase from 17.5 per cent to 20 per cent from 4 January 2011, but items such as food, children’s clothes and books will remain zero-rated for VAT purposes.

New Budget 22 June 2010

The Cancellor of the Exchequer, George Osborne, will deliver his first 2010 budget speech to the House of Commons on 22 June 2010.

We will keep you informed of anything which may have implications for small business owners and will also be keeping a close eye on the possible implimentation of GAAR (General Anti Avoidance Rules) and possible (but more than likely) changes to the VAT rate, CGT and Corporation Tax.

Running your own business

• Are you planning to work as a freelancer or sole trader?
• Are you struggling to make your business a success?
• Do you need advice and guidance on small business accounting?

Contact SAIL for a free no obligation consultation on 020 8 241 3495.

In the comming weeks we will also be exploring the practicallities of setting up and administering your company and tackle some of the stumbling blocks our clients face on the way to making their business a success.