TAX CALENDAR (Important Dates)
Self-Assessment for Individuals and Contractors
31 Oct. - By this date Inland Revenue should have received the paper Tax Return form for Self Assessment.
31 Jan. - By this date you should file electronically your Self-Assessment Tax Rerurn if you have not sent your paper tax return form till 31 Oct.
This is the date when you should also pay your tax due for the current tax year together with your first 50% payment on account for the next year (if there is any due).
31 July - This is the date you should pay your second 50% payment on account for the next tax year (if there is any due).
Comapnies and Employers
19th of every month - Any cheques payment for National Insurance Contributions and PAYE due for the preceding month ended on 5th must reach Inland Revenue's office by this date. For the company working in the construction they also must sent CIS due for their subcontractors for the preceding period ended on 5th.
If you pay electronically the funds must reach Inland Revenue's account by 22nd.
Important dates following the end of the tax year
19 May - By this date Inland Revenue should have received P35 form for the end of the tax year.
31 May - By this date you should give P60 End of Year Certificate to each of your relevant employee.
6 July - By this date you should submit online or paper the following form:
* P9D - Expenses payments and income form which tax cannot be deducted
*P11D - Expenses and Benefits form, and
*P11D(b) - Return of Class 1A National Insurance contributions due, Reurn
of expenses and benefits - Employers declaration
- Give a copy of forms P11D (or P9D) each relevant employee
Tax Rates & Allowances
Income Tax Rates and Allowance – Click here:
Note: The 10% starting rate of Income Tax includes savings income. Where an individual has savings income in excess of the starting rate limit they will be taxed at the lower rate of 20% up to the basic rate limit and at the higher rate of 40% for income above the basic rate limit.
The rates of tax for dividends are 10% for income up to the basic rate limit and 32.5% for income above the basic rate limit.
National Insurance – Click here:
Inheritance Tax - Click here:
Tax Credit/Child Benefit - Click here:
Corporation Tax - Click here:
Travel - Click here:
Capital Gains - Click here:
Capital Allowances - Click here:
Plant and machinery - Annual Investment Allowance (AIA)
The AIA gives a 100% write-off on most types of plant and machinery costs, including integral features and long-life assets but not cars, of up to £50,000 p.a. Any costs over the AIA fall into the normal capital allowance pools at either 10%
or 20%.
The AIA applies to expenditure incurred on or after 6 April 2008 (1 April 2008 for companies) by all businesses. Special rules apply for accounting periods straddling these dates. The £50,000 limit may need to be shared between certain businesses under common ownership.
Other plant & machinery allowances:
The annual rate of allowance is 20% (25%) from 6 April 2008 (1 April 2008 for companies). The 20% rate also applies to cars, with an overriding maximum of £3,000 per car. Special rules apply for accounting periods straddling these dates. First year allowances are abolished except a 100% allowance may still be
available on certain energy efficient plant and cars.
A new 10% rate applies to expenditure incurred on integral features and on long life assets on or after 6 April 2008 (1 April 2008 for companies). Long life asset expenditure brought forward will obtain the 10% rate (6%), with special rules
applying for accounting periods straddling these dates.
Industrial and agricultural buildings and hotels
The annual rate of allowance is 3% (4%) from 6 April 2008 (1 April 2008 for companies). Special rules apply for accounting periods straddling these dates.
Budget 2013 – Click here:
Downloadable Forms
HM Revenue and Customs
64-8 - Authorising your agent – Click here:
FBI 2 - Authorising your agent to use PAYE/CIS online services - Click here:
CWF1 - Becoming self-employed and registering for National Insurance contributions and/or tax – Click here:
CH2 - Child Benefit Claim Form – Click here:
P11D - Expenses Payments and Benefits – Click here:
P11D(b) - Return of Class 1A NICs due. Return of expenses and benefits - employers declaration – Click here:
P45 - Details of Employee Leaving Work – Click here:
P46 - Employee without a form P45 – Click here:
P46(Car) - Car provided for the private use of an employee or a director - Click here:
CT41G - Corporation Tax- New Company Details – Click here:
VAT 1 - Value Added Tax - Application for Registration - Click here:
VAT 7 - Application to Cancel Your VAT Registration - Click here:
More HMRC forms: - Click here:
Companies House
IN01- Declaration on application for registration – Click here:
AA01 - Change of accounting reference date - Click here:
AD01 - Change of registered office address - Click here:
AP01 - Appointment of Director - Click here:
AP03 - Appointment of Secretary - Click here:
TM01 - Terminating appointment of Director - Click here:
TM02 - Terminating appointment of Secretary - Click here:
AA02 - Dormant Company Accounts form - Click here:
More Companies House forms: - Click here:
31 Oct. - By this date Inland Revenue should have received the paper Tax Return form for Self Assessment.
31 Jan. - By this date you should file electronically your Self-Assessment Tax Rerurn if you have not sent your paper tax return form till 31 Oct.
This is the date when you should also pay your tax due for the current tax year together with your first 50% payment on account for the next year (if there is any due).
31 July - This is the date you should pay your second 50% payment on account for the next tax year (if there is any due).
Comapnies and Employers
19th of every month - Any cheques payment for National Insurance Contributions and PAYE due for the preceding month ended on 5th must reach Inland Revenue's office by this date. For the company working in the construction they also must sent CIS due for their subcontractors for the preceding period ended on 5th.
If you pay electronically the funds must reach Inland Revenue's account by 22nd.
Important dates following the end of the tax year
19 May - By this date Inland Revenue should have received P35 form for the end of the tax year.
31 May - By this date you should give P60 End of Year Certificate to each of your relevant employee.
6 July - By this date you should submit online or paper the following form:
* P9D - Expenses payments and income form which tax cannot be deducted
*P11D - Expenses and Benefits form, and
*P11D(b) - Return of Class 1A National Insurance contributions due, Reurn
of expenses and benefits - Employers declaration
- Give a copy of forms P11D (or P9D) each relevant employee
Tax Rates & Allowances
Income Tax Rates and Allowance – Click here:
Note: The 10% starting rate of Income Tax includes savings income. Where an individual has savings income in excess of the starting rate limit they will be taxed at the lower rate of 20% up to the basic rate limit and at the higher rate of 40% for income above the basic rate limit.
The rates of tax for dividends are 10% for income up to the basic rate limit and 32.5% for income above the basic rate limit.
National Insurance – Click here:
Inheritance Tax - Click here:
Tax Credit/Child Benefit - Click here:
Corporation Tax - Click here:
Travel - Click here:
Capital Gains - Click here:
Capital Allowances - Click here:
Plant and machinery - Annual Investment Allowance (AIA)
The AIA gives a 100% write-off on most types of plant and machinery costs, including integral features and long-life assets but not cars, of up to £50,000 p.a. Any costs over the AIA fall into the normal capital allowance pools at either 10%
or 20%.
The AIA applies to expenditure incurred on or after 6 April 2008 (1 April 2008 for companies) by all businesses. Special rules apply for accounting periods straddling these dates. The £50,000 limit may need to be shared between certain businesses under common ownership.
Other plant & machinery allowances:
The annual rate of allowance is 20% (25%) from 6 April 2008 (1 April 2008 for companies). The 20% rate also applies to cars, with an overriding maximum of £3,000 per car. Special rules apply for accounting periods straddling these dates. First year allowances are abolished except a 100% allowance may still be
available on certain energy efficient plant and cars.
A new 10% rate applies to expenditure incurred on integral features and on long life assets on or after 6 April 2008 (1 April 2008 for companies). Long life asset expenditure brought forward will obtain the 10% rate (6%), with special rules
applying for accounting periods straddling these dates.
Industrial and agricultural buildings and hotels
The annual rate of allowance is 3% (4%) from 6 April 2008 (1 April 2008 for companies). Special rules apply for accounting periods straddling these dates.
Budget 2013 – Click here:
Downloadable Forms
HM Revenue and Customs
64-8 - Authorising your agent – Click here:
FBI 2 - Authorising your agent to use PAYE/CIS online services - Click here:
CWF1 - Becoming self-employed and registering for National Insurance contributions and/or tax – Click here:
CH2 - Child Benefit Claim Form – Click here:
P11D - Expenses Payments and Benefits – Click here:
P11D(b) - Return of Class 1A NICs due. Return of expenses and benefits - employers declaration – Click here:
P45 - Details of Employee Leaving Work – Click here:
P46 - Employee without a form P45 – Click here:
P46(Car) - Car provided for the private use of an employee or a director - Click here:
CT41G - Corporation Tax- New Company Details – Click here:
VAT 1 - Value Added Tax - Application for Registration - Click here:
VAT 7 - Application to Cancel Your VAT Registration - Click here:
More HMRC forms: - Click here:
Companies House
IN01- Declaration on application for registration – Click here:
AA01 - Change of accounting reference date - Click here:
AD01 - Change of registered office address - Click here:
AP01 - Appointment of Director - Click here:
TM01 - Terminating appointment of Director - Click here:
TM02 - Terminating appointment of Secretary - Click here:
AA02 - Dormant Company Accounts form - Click here:
More Companies House forms: - Click here:
R35 for Contractors
Plain English IR35 Advice. We aim to give you an advice that you will be able to understand not like most of the technical 'mumbo jumbo' you will read on the internet.
What is IR35? IR35 was brought about by the government to ensure small companies especially contractors and freelancers, operate their own limited companies in a right and proper manner with the same level of risk, responsibility, liability and control that other directors of limited companies accept, when they manage their own businesses. You will most definitely be caught by IR35 and found to be inside if you have the same level of risk, responsibility, liability and control as a permanent member of staff.
What are the consequences? You will have to pay full tax and National Insurance (instead salary & dividends) if your contract falls inside of IR35 legislation. In this case HMRC will not consider you as a genuine contractor, but hidden employee.
Please note that even if you are caught by IR35 though you can still benefit from trading through your limited company. You can still claim some expenses and benefit from the VAT flat rate scheme.
What are HMRC looking for to see in order to determine your IR35 status? Below are a few tests used by HMRC:
Contract: The very first thing is what type of contract do you have? Is it 'contract of service' or 'contract for service'? The first is contract for employment.
Right of dismissal: Do you have breakup clauses in your contract or you need to give them a notice in advance if you like to leave? HMRC would look at the last one like an employment.
Control: Do you have a freedom to manage your own work or it is done by the client?Financial risk: Do you carry any financial risk or not? Usually, employment is not associated with the financial risk, but only with financial benefit.
Provision of equipment: Are you using your own equipment or it is provided by the client?
Substitution: Do you have rights to hire/employee or use somebody else to do the work for which you have contract to do?
Employee benefits: Do you have any holiday or sick pay, paid qualification courses, bonuses, pension contributions.
Exceptions to the rules
If a company has employees who have 5% or less of the shares in their employer company, the rules will not be applied to the income that those employees generate for the company. Note however that in establishing whether the 5% test is met, any shares held by 'associates' must be included.
If you are at all worried by IR35 or have any further questions please call us on:
079 8419 3955, Hristo Colov or e-mail: info@ColovAccountancy.com
Limited Company or Self-employee against Employee or PAYE Umbrela
Limited Company | PAYE Umbrella |
Advantages | Advantages |
| The most tax efficient way of income, especially the Limited Company. | The simplest & easiest way to work. If you are employee usually you don't need to do anything & for an Umbrella just fill in your timesheet and expense details. |
| Usually you would be able to claim a wider range of expenses. | All tax and NI is deducted at source, before you receive your money, so you don't need to worry about any further tax bills. |
| You are in control of your financial side of the business, so there is no extra third party admin expenses as it is with an Umbrella Company. | Ideal for short term contracts or for annual income less than £20k per year. |
| Efficient way of income distribution and tax planning, which do not exist under PAYE or Umbrella Company. | |
Disadvantages | Disadvantages |
| It is bit more complicated than PAYE and an Umbrella, especially with Limited Companies. It requires some work involvement from you, usually no more than 30min per month. | The most tax inefficient way of income. You will be taxed at source and all taxes and NI will be paid out of your salary before you received the money. |
| It can be expensive if your annual turnover is less than 15K or you are contracted for a short period of time and then decide go back to be employee. | If you work under an Umbrella you will be dependant on it to collect your money from the client and you will be charged for this service. |
If you have yet to form your limited company Colov Accountancy offers you one of the most competative price on the market starting from £59 all inclusive.