quick SA question
Discussion
If this is your only business income, then no, you do not have to be registered as self employed. This doesn't mean however that you don't need to fill in an SA tax return. If you have been issued with a notice to file a return, or you have income which is not fully taxed for a tax year, then you must file a return. Your dividend income will not be fully taxed if you are a higher rate taxpayer. (for 2004/05 your gross income will need to be over 31,400 after personal allowances).
P.S. Who is this accountant who goes on holiday in January?!
P.S. Who is this accountant who goes on holiday in January?!
I bet he doesn't have an accountant.
Self Employed people are people who run their business under their own name. The correct legal term is "Sole Trader". Sole Traders should always complete Self Assessment tax returns
In my experience, most company directors should complete Self Assessment tax returns too, even if they are not higher rate tax payers. The Inland Revenue often include them automatically in the SA system once the company has been set up at Companies House and has been registered for PAYE and Corporation Tax.
yes I do have an accountant - how rude to suggest otherwise
i'm rather irritated though that the other partners in the firm are "too busy" to answer this simple question for me anyway, it is my only income, but unfortunately for me I am not in the 40% tax bracket this year. My problem is that I do not have a UTR (unique taxpayers reference), and when I went to see the IR enquiry office they said I had to be registered self employed to get one. If this isn't the case, do you know how I do get myself a refernce number?
The information you got from the tax office is definately wrong. As already mentioned, there are many people who need to complete Self Assessment tax returns who are definitely NOT Self Employed. You can ask for a blank Self Assessment tax return from your tax office at any time. When the return is sent to you, you will find that a Unique Tax Reference (UTR) will be pre-printed (or even hand written) in the top left hand corner of the form.
Regarding these tax references, you do not absolutely have to have a UTR to go ahead and complete a form. I often go ahead and complete returns for new Self Assessment clients even when the Revenue have not yet got around to isssuing a blank return form.
The UTR is not vital as the Revenue can also identify who you are on their system by using either your PAYE Employer's Reference (which your company should already have) or even your NI number. In fact, after the Inland Revenue took over the Contributions Agency in 1999 they found that the NI number was the best method for identifying people and now they often ask you to quote it if you phone them up with a query.
If you are "Basic Rate Tax" payer and only pay yourself dividends (which may not be an altogether wise thing to do for all sorts of reasons), you will probably not have any tax liability to pay under the Self Assessment system. However, if you suffer tax deducted at source on other income you might have (like bank or building society deposit interest) you could very well be due a tax refund.
Once you enter the higher rate tax brackets you most definitely will have Self Assessment tax liabilities to pay each 31 January (and possibly on 31 July).
>> Edited by Eric Mc on Wednesday 18th January 11:58
Regarding these tax references, you do not absolutely have to have a UTR to go ahead and complete a form. I often go ahead and complete returns for new Self Assessment clients even when the Revenue have not yet got around to isssuing a blank return form.
The UTR is not vital as the Revenue can also identify who you are on their system by using either your PAYE Employer's Reference (which your company should already have) or even your NI number. In fact, after the Inland Revenue took over the Contributions Agency in 1999 they found that the NI number was the best method for identifying people and now they often ask you to quote it if you phone them up with a query.
If you are "Basic Rate Tax" payer and only pay yourself dividends (which may not be an altogether wise thing to do for all sorts of reasons), you will probably not have any tax liability to pay under the Self Assessment system. However, if you suffer tax deducted at source on other income you might have (like bank or building society deposit interest) you could very well be due a tax refund.
Once you enter the higher rate tax brackets you most definitely will have Self Assessment tax liabilities to pay each 31 January (and possibly on 31 July).
>> Edited by Eric Mc on Wednesday 18th January 11:58
Jaglover said:
i don't actually know if he is on holiday, but he is "not in the office until monday"
That is an old ploy, when a partner is snowed under with work, just tell clients he is not available.
Allot of Partner time is usually tied up dealing with queries.
Clients, eh. Pains in the arse. Work would be so much easier without paying customers to get in the way! LOL.
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