HMRC - Self Assessment Online

[houmie]

Hi,

I have started as a contractor this year and incorporated my limited company on 15 March 2011. My first contract was signed on 4 April 2011 and my first invoice was raised on 15 April 2011.
Therefore the incorporation is still in 2010/11 but the everything else is in the new financial year 2011/2012.

In June I have received a letter from HMRC that they 'believed' I should be completing a tax return each year from now on. They also said "We will let you know which tax return we want you to complete".

However until today I have not received a definite answer if I needed to provide the self assessment for 2010/11 at all.

In the meanwhile I have switched my accountant due bad experience with the previous one. But even the new one, while very professional and efficient, is getting more greedy and has already raised the monthly fees. It seems as soon as they see how much a contractor can earn, they think why not taking a bigger cut from it. My accountant says for a self assessment for the previous year, which doesn't fall into current plan had to be charged extra. They want to charge me between 200 and 500 quid. I don't understand the range yet. As if I paid 200 it would be bad self assessment and 500 would be a great one or what?

All I have earned in the past year was some lousy interest from saving accounts and my P45 from my previous full time employer. Thats it. I don't see why I should pay almost 5 months worth of accountancy fees for such simple self assessment. Hence I thought I do it myself.

According to the HMRC letter I need to login HM Revenue & Customs: Home Page and under "Do it Online" select Self Assessment. I did so but now under my account I can only choose between two options:

Self Assessment (SA) for Partnerships
and
Self Assessment (SA) for Trusts

Am I by any chance the second one that is Trusts? Or maybe I need to add that service to my online account, but can't see it.

Is there actually a way to see online if HMRC really wants a tax return for 2010/11 from me or does my accountant want to simply increase his revenue?

Many Thanks,

[craig1]

HMRC being HMRC, they don't make it simple with their instructions. Ignore the directions in the letter, go to HMRC website then under Individuals select Self Assessment, it'll lead you here. First couple of links are what you need.

[Clare@InTouch]

Call HMRC and ask them if they are expecting a return, explain the situation to them - 0845 9000 444. You'll need your NI number to hand, and your UTR (it will be the 10 digit reference on the letter they sent you to request a return).

If it's a simple return you can probably do it yourself easily enough through the HMRC Gateway, certainly £200 to £500 sounds excessive to me. Call round some other accountants and get a quote for a one off tax return if you don't want to do it yourself, you'll get a much better deal than you're being offered, assuming it IS only P45 and bank interest. Often fees are based on what needs to be done - so in their structure £200 would probably be a basic return, whereas £500 would include capital gains, foreign, rental income etc.

You're not a Partnership or Trust, there should be an option for Self Assessment. Did you register here? https://online.hmrc.gov.uk/registration/individual

Call the HMRC Online helpline if you can't get it to work, they are sometimes useful if you get through to the right person!