Self Assessment Tax Returns for Company Directors & Shareholders: A Guide

The Financial Conduct Authority (FCA), together with the Prudential Regulation Authority (PRA) and the Bank of England, published updated guidance today about how companies can assess whether they meet their obligations under the Companies Act 2006. This includes assessing whether there is adequate corporate governance arrangements in place to protect investors and customers, including those related to risk management, remuneration policies, conflicts of interest and board composition.

Companies must consider risks associated with their activities and ensure that appropriate measures are taken to manage those risks. They must monitor the effectiveness of their risk management systems and make sure that there is effective oversight of key functions such as financial reporting, internal controls and compliance.

In addition to meeting their statutory requirements, companies must demonstrate that they have sound corporate governance practices in place. These include having well-functioning boards, good corporate culture and clear lines of accountability. Boards play a vital role in overseeing the conduct of the company and ensuring it meets its responsibilities towards stakeholders.

To assist companies in understanding their duties and responsibilities, the FCA and PRA have developed a self assessment toolkit. The toolkit provides practical advice on areas where companies should focus attention, including:

• Risk assessments;

• Board composition;

• Remuneration policy;

Should I sign up for Self Assessment?

Directors must register for Self Assessment (SA) if they earn more than 10,000 GBP per annum. This includes directors and shareholders who are employed by the company. If you do not meet this threshold, you don’t need to complete a SA return.

If you receive tips or commission payments, you must declare these amounts in your annual accounts. You should include the amount received in your total income figure. Tips and commissions are not included in the table above.

Shareholders holding less than 2,000 shares should not need to complete a SA form. However, it is important to keep track of how much money you make each year. Your financial records will help you understand whether you are paying enough tax.

How to sign up for self-evaluation

Before sending out their personal tax returns, company directors must sign up for self assessment with HM Treasury. This is true for both people who work on their own and for companies. If you are in charge of a business, you need to fill out Form N8A. You will need to give your name, address, national insurance number, date of appointment as a director, and any other information that is relevant. Once you’ve signed up, you’ll need to use the Online Tax Return Service to send in your tax return (OTRS).

You can find further information about registering for self assessment here.

If you do not want to use OTRS, you can download a paper form and submit it directly to HMRC

Getting your Self Assessment tax return done and sent in

Self assessment tax returns are due by April 5th. If you haven’t filed yours already, it’s now easier than ever to complete and submit one. This includes completing and filing your self assessment tax return, paying your taxes, and submitting your tax payment.

You can do all three things online. All you need is a computer, tablet, smartphone or laptop, along with an Internet connection.

There is no charge to use the online system and there is no requirement to download anything. Simply log into the online system, select what type of tax you owe and how much you owe, enter your bank account details and choose whether you want to pay by credit/debit card or cheque.

The online system allows you to make payments up to six months ahead of the date you need to pay. So, if you need to pay your taxes next week, you can still set up automatic payments.

If you prefer to use paper forms, you can print out a PDF version of the form and mail it to HM Revenue & Customs (HMRC). Alternatively, you can download the PDF versions of the forms directly onto your computer or mobile device.

Once you’ve filled in the relevant sections of the form, you simply sign it digitally and send it off.

Filing deadline for tax returns

If you haven’t filed your tax return for 2018 yet, it’s now too late. You’ll face a penalty of £100 if you don’t submit it by 31st October. If you’re still struggling to come up with the money, here’s how to find free ways to pay.

The self assessment filing deadline is 31st October, meaning that anyone who hasn’t already done so needs to start preparing now. Paper forms must be sent to HM Revenue & Customs (HMRC), while online ones go straight to the government’s portal.

You can use the Find My Tax Return tool on the HMRC website to check whether you’ve filled out everything correctly. Once you’ve finished, you’ll want to print off a copy of your completed form and send it along with proof of payment to your local post office.

Online returns are due to be submitted 31st January, so you’ll need to make sure that you’ve got everything ready by then. Again, the HMRC site offers a handy checklist to help you complete your return.

Failure to file within the deadline won’t just mean a hefty fine – you could even end up being prosecuted under the Proceeds of Crime Act 2002.

Your tax bill from Self Assessment

Your Self Assessment tax bill is now due by 31st January. If you haven’t paid it already, you’ll receive a reminder email from HMRC on 2nd February asking you to make payment.

If you’re still unsure about how to go about paying your Self Assessment tax, here are some tips:

1. 2. Click ‘Pay my taxes’, then select ‘Make a payment’

3. Select ‘Online payments’

4. Enter your name and address

5. Choose whether you want to pay by bank transfer, debit card or credit card

Payment deadline

If you haven’t paid income tax or national insurance by 31st January 2020, you’ll automatically receive an extension until 30th April 2020. However, there are penalties if you fail to make payment by the due date. You could also be charged interest and fines.

The government says it wants people to start paying their taxes by 31st December rather than 31st January. This way, everyone pays on time, avoiding penalties and interest charges.

Payments on account

If you haven’t paid your income tax bill by December 31st, it’s too late. If you don’t pay up, you’ll face hefty fines and interest charges. But there’s good news – you can make payments on account throughout the year. Here’s how it works.

How to pay

HM Revenue & Customs offer different ways to pay your tax bill, depending on how much you owe. You might want to consider paying your taxes every month, rather than once a year. This way you’ll avoid penalties and interest charges. If you’re struggling to make ends meet, it might be worth setting up a budget payment plan. Or, if you’ve got some spare cash lying around, you could use it to pay off your tax debt sooner.

If you are unable to pay your tax bill

HM Revenue & Customs (HMRC) is warning people about the consequences of failing to pay their taxes. If you do not pay your tax bill within 21 days of the due date, it could lead to interest charges and late payment fees. And there are several different ways to appeal against a fine if you think you did not owe money.

The taxman is reminding people that they must pay their taxes on time. Failure to do so could mean interest charges and late payment penalties. This applies to individuals and businesses.

You should always try to avoid having to pay fines or penalties. But if you do find yourself facing one, there are some things you can do to reduce the impact.

For example, you can make sure you have enough funds to cover the amount owed. If you don’t have enough cash, contact HMRC immediately. They might be able to help you out.

There are several different ways to challenge a penalty notice. For example, you can ask HMRC to reconsider the decision. Or you can request a review.

But you need to act quickly. Once you receive a penalty notice, you have just 21 days to pay up. After that, you will face additional charges.

Frequently Asked Questions

What are the key dates and deadlines for Self Assessment?

When we talk about dates for self assessment, often the date is usually said to be ‘in the tax year’. Or sometimes it is said to be ’at the end of the tax period’, or ‘after the end of the tax season’.

A UK tax year runs from the start of 6 April to the next 5 April. So, when we talk of the tax year 2022/2023 it starts on 6th April 2022 and ends on 5th April 2023.

The 31st January during the tax year, is 31st January 2023. The fifth of October following the end of tax year is 5th October 2023 and the first of January following the end of tax is 1st January 2024.

Not all of the dates listed above might apply to you. But you can find out more from the link given in each bullet.

What should I do if I am exempt from filing a tax return?

If you are unsure whether you still need to file a tax return, you must check with HM Revenue & Customs (HMRC). If you are certain that you no longer need to file a return, you should inform HMRC immediately.

You can contact HMRC using GOV.UK. There are three ways you can make this request:

1. Using the online form

2. Calling HMRC directly

3. Sending a letter

The easiest way to contact HMRC is via the online form. This allows you to select the method of communication that suits you best.