UK Income Tax/Self Assessment – Small Business Owners Tax Computation

Companies Act 2006 - 1 Oct 2009

Companies to use new statutory forms for filing statutory information to Companies House.
Directors to provide service address for public record instead of residential address.
Companies to provide Single Alternative Inspection Location - SAIL address if company records and registers are not kept at registered office.

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Reminders for Directors

Registrar of Companies issue late filing penalties from £150 to £7,500 to companies if file company accounts late.

Companies House maintains companies information for public inspection.
Companies House will remove Companies and LLP if Annual Return was not filed on time.
Small and medium sized companies are eligible to file abbreviated accounts to Companies House which put less information for public records.

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VAT Administration and Obligations

Small businesses must register for VAT if sales are expected to be more than £68,000.
VAT Registered companies must file VAT returns to HMRC promptly.
Small companies may opt for VAT cash Accounting Scheme if sales are below £1.3 million.

General Business Quiz

1. In what circumstance, a company is allowed to extend its accounting period more than once within five years?

the company is extending its accounting reference date to align with that of a parent or subsidiary undertaking established in the European Economic Area

the company is subject to an administrative order

the company has obtained the specific approval from the Secretary of State

All of the above

Submit

What income is subject to income tax?

Almost everything you earn is taxable under the UK government tax system. This includes the following:

Profits you make from working for yourself as a sole trader or in a partnership.

Monies from state pensions, Personal and company pensions as well as retirement annuity.

Profits you make from spare time activities such as selling stuff in ebay etc.

Income from company or personal pensions and retirement annuity.

Interest received from your savings accounts

Dividends from stocks and shares (both UK and foreign) excluding dividend income from ISAs.

Dividends from open-ended investment companies (commonly referred to as unit trusts)

Rental income from buy to let property and rooms for rent.

Earnings from abroad including anything you earn by renting out holiday homes

Salary and wages including bonuses from full time, part time and temporary employment.

People under employment are normally taxed under the Pay As You Earn (PAYE) scheme and probably would not need to file a tax return unless you have other income sources or have a complicated tax affairs.

Concise Accountancy provides taxation services to individuals. Feel free to contact us if you require help to work out your income tax bill, our accountants will be more than happy to assist you including completing your personal tax return for you.

Concise Accountancy – Taxation solutions for individuals