Self-assessment and limited companies

Our experts guide you through the process of becoming a self-employed freelancer

Everything you need to know about tax returns for limited companies

Our team of experts at DSR Tax Claims aim to make life as simple as possible for you by taking away the hassle of your taxes. Because we know how difficult it can be to get hold of good, quality information about taxes and HMRC regulations, we have created these helpful guides so that you always know where you stand. If you are running a limited company and you have questions about your self-assessment tax return, have a read through this handy guide – you can also call our friendly team on 0330 122 9972 and let us make life as easy as we can for you.

Should you set up a limited company?

It can be hard to know what to do when you first become self-employed or set up your own company but there are some real advantages to becoming a limited company. The main advantages are financial – it can limit how much money you can lose if it all goes wrong and you do get some tax breaks too. It can also make a difference to how your business appears to others – like customers and lenders – because it looks like you really mean business!

But as with everything, there are downsides too. Because you have to register with Companies House, you do give up some of your privacy and that also costs money. And of course, because your limited company is a separate entity to you, it means that you will have to keep two sets of books – your company accounts as well as your own personal accounts. Your company accounts will also have to be filed with Companies House as well as with HMRC.

Because no two companies are the same, it is always worth spending a bit of time thinking about your options and making the right decision for you and your company.

Self-assessment and limited companies

As a limited company, you will need to register with HMRC for self-assessment – both for the company and for yourself as the director. It can often be a great help to get professional help doing this – our team of experts can guide you through this so that you start life as a limited company as smoothly as possible, so call us on 0330 122 9972.

As a limited company, you will have to file certain paperwork to make sure that everything is above board. These are:

  • Your company tax return. From this, HMRC will calculate your Corporation Tax and will be calculated from your profits and losses.

  • Your annual return to Companies House – this is a separate filing to your HMRC tax return.

  • Your own personal self-assessment tax return as a director of your limited company. This allows HMRC to calculate how much tax you owe rather than how much your company owes.

Again, professional help can be invaluable when dealing with all this paperwork and our experts are here to help.

What business records will you need to keep?

HMRC will expect you to keep a lot of paperwork in support of your tax return, so it is always a good idea to get it organised from the get-go.

Here is just some of the paperwork you will need:

  • All of your P60s, P11Ds and P45 documents.

  • Details of any benefits you have received – statutory sick pay (SSP) or statutory maternity pay (SMP)for example.

  • Details of business expenses.

  • Redundancy payments you may have received.

  • Details of any other forms of income you receive – maybe rental income from property or share dividends.

Basically, HMRC are going to want to see a full picture of your finances. Don’t worry if this all sounds too complicated – our friendly team are always on hand to help so give us a call on 0330 122 9972.

How can DSR Tax Claims help?

Our team of tax preparation specialists at DSR Tax Claims are experts in HMRC legislation, including those rules surrounding limited companies, so you can be sure that your company’s tax return is filed correctly and that you and your company are only liable for the correct amount of taxed owed and not a penny more. Because it can be complicated to work out the tax returns for a limited company, it is always a good idea to get expert help – that way you can be sure that you’re not paying a penny more tax than you need to. You can also rest assured that you stay on the right side of HMRC and you are not claiming any tax relief that you aren’t entitled to. Call our expert team on 0330 122 9972 and let us get to work making your life simpler – after all, we are the tax experts you can trust.

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