Self Assessment - Should I complete one?

**TheFaQQer** · 12 February 2008, 15:13

If you're a director then you need to complete a self assessment.

**malvolio** · 12 February 2008, 15:15

Originally posted by JudoStu View Post

Hello all, it's my first post so go easy on me

Just to help explain my dilemma/confusion I'll give a bit of background info.

I started contracting in March 2006 (27th to be exact) and worked through Giant Powerhouse (still classed as en employee I believe even though paid divi's) and my hourly rate was £45 (thus pushing me into the higher tax bracket)

Before going contracting I had earned circa £50k (permie job) for the previous 2 years but never had to do a SA as never had any expenses, divi's or anything else apart from basic PAYE.

Due to the new legislation regarding MSC's in 2007, I decided to start my own Ltd company and started trading on 2nd April 2007, again my hourly rate was £45 so I'm in the higher bracket.

Now to my questions (at last I can hear you say).

As I was paid dividends when working through Giant, I now believe I should have paid additional tax on them (for hitting 40% bracket). However Giant said I don't need to complete a SA unless I'm sent one, is this correct?

Now I'm working through my own Ltd company I think I should be doing a SA, but again I haven't been sent one, why? Is it simply a case of taking the IR a year or two to catch up with me and then asking me to complete one?

Please excuse my ignorance/being naive but I'm useless when it comes to tax things (trying to learn). I will speak to my accountant but I don't want to seem like a completely clueless idiot (although I am).

Many thanks for your time and help, oh and sorry for the long post.

You're a director of your company I assume. Directors have to complete SA forms regardless. If you haven't done on you're too late, and are in for a £100 penalty anyway, but contact the Tax Office and get them to send you one sharpish. And sack your accountant, if you hasn't told you stuff like this he's not doing his job.

Let me guess - you haven't read the First Timer guides yet either...?

**ASB** · 12 February 2008, 15:23

"However Giant said I don't need to complete a SA unless I'm sent one, is this correct?"

No. You must complete one if:-

a) You are sent one
b) You need to

A quick search on HMRC will yield what you need to know.

Your SA return for the year ended April '07 was due by 31/1 so you are late.

http://www.hmrc.gov.uk/pdfs/sabk8.htm#c

**VectraMan** · 12 February 2008, 15:43

Originally posted by JudoStu View Post

I decided to start my own Ltd company and started trading on 2nd April 2007,

You'll definitely need to do one for 07/08, but I would think your directorship wouldn't count for the 3 days of 06/07. Maybe.

A few years ago I was sent a £100 fine for not doing a SA for two years previous. I phoned up to say that I hadn't been sent one and had no idea I was meant to do one. They dropped the fine and gave me a month to do it.

**JudoStu** · 12 February 2008, 16:15

Thanks for all the quick replies, really appreciate it.

@ TheFaQQER - thanks for that, I'm aware of that now thanks to the link that ASB posted.

@ ASB - thanks for the link and confirmation that Giant were wrong (surprise, surprise).

@Malvolio - yes I'm a Director of my Ltd co. I'll call the tax office in the morning and explain the situation, I'm also going to read through the first timers guide tonight. Only became aware of this site through a fellow contractor at work. With regards to the £100 fine, I'll just have to pay it and I'm in the process of thinking about changing accountants, although they probably did tell me about the SA.

@VectraMan - thanks for that, I'll see what they say, would be nice not to pay the fine.

With regards to any extra money owed (such as for the divi's etc) when would these be due? I was under the impression it was the January after the tax year, is that right?

Thanks again for all the help.

**Hex** · 12 February 2008, 17:21

As I was paid dividends when working through Giant, I now believe I should have paid additional tax on them (for hitting 40% bracket). However Giant said I don't need to complete a SA unless I'm sent one, is this correct?

As ASB said, you need to fill in an SA if you need to. Because you received dividends that took you over the higher rate threshold then you need to fill one in. This is the case regardless of whether you are a director or not. It is YOUR responsibility to fill the form in whether you are sent one or not.

**xoggoth** · 12 February 2008, 17:28

Seconded. Says so on HMRC site somewhere. You will need to do one for 2007/8when it is due. 2006/7 hardly sounds relevant, was there any actual paperwork from Giant that you had received a divi between 27th March and April 5th? Sounds unlikely.

**JudoStu** · 13 February 2008, 09:19

Hi Guys,

Thanks for the replies (I did actually reply earlier but it seems to have been lost?).

I'm now aware that as a Director I have to do a SA, regardless of earnings, so thanks for clearing that one up.

It seems I'm going to have to bite the bullet and pay the £100 fine, it's my fault though so I'm not so concerned about that. I'm going to phone the tax office today or tomorrow and explain everything to them. It's just where do I start trying to explain all of this to them, are they sympathetic to idiots?

@Malvolio - I'm in the process of changing accountants at the moment but I wanted to wait until my year end in April really. And yes you guessed right, I haven't read the first timers guide. Top of my list for today (better late than never I suppose).

@Xoggoth - I've just been through all the "stuff" I saved from my Giant Powerhouse portal and I do have all the electronic payslips and a dividend analysis sheet. There is a payslip that details the payment I received on 21/04/2006 which would have been for the first weeks contract (from 27th March 2006).

Also I just remembered I didn't work for 3 1/2 months in 2006 as we had our first baby, so my last pay date (before the holiday) was 07/06/2006 and then didn't get paid again until 29/09/2006 (on new contract).

With regards to the 2006/2007 tax year, when would any extra tax be due? Would they expect me to pay immediately or would I get some time to pay it?

Thanks again for your help guys, I've just got to try and sort this mess out now, not looking forward to completing the SA.

**r0bly0ns** · 13 February 2008, 17:18

Originally posted by TheFaQQer View Post

If you're a director then you need to complete a self assessment.

That's what I allways thought, however after instructing our accountant to chase up the local tax office last year as neither me or my business partner had received anything about our SA's, he was informed that we didn't have to do one this year as they were happy with the amount of PAYE we had paid and we hadn't gone into the higher tax bracket........

Self Assessment - Should I complete one?