Knowing how to complete your company director tax return can be difficult, especially if you haven’t done it before. Typically, the best way to find out about tax returns is by speaking with your local accountant, but this isn’t the case for everyone.
If you fail to meet your legal responsibilities, there’s a high chance that you could lose your position as a company director. Although some company directors handle their financial affairs alone, it’s usually advised that they have a trusted accountant in place to keep on top of their finances.
All company directors need to complete tax returns, whether it’s independently or by using reliable accountancy services. If you’re a company director and need more information about completing tax returns, continue reading.
Completing Tax Returns as Company Director
Even if company directors don’t receive a salary, they’re still required to file a self-assessment tax return. It’s essential that company directors also declare any dividends that they receive from the company shareholder.
Being a company director in itself is a tedious job and comes with an array of additional tasks. As a director, you’re responsible for making sure that tax returns are accurate and completed on time.
It can be hard managing a business as well as keeping on top of your finances, which is why having an accountant comes in handy. If tax returns aren’t filed on time, you could face a penalty.
Although it seems unfair, having your tax returns completed on time could still come with the potential of being fined. Inaccurate tax returns, on time or not, often lead to inaccuracy penalties.
There are specific requirements for returning tax returns – if you fail to comply with the rules given, you could get yourself into trouble. Before completing tax returns, you should make sure you know all the vital information necessary in order to complete your returns accordingly.
How to Complete Self-Assessment Tax Returns as Company Director
If you’re a company director, you will need to complete tax returns. A tax return must be made to establish your income and capital gains due for the year. By not completing your tax returns, you could face issues with HMRC and they could investigate your business.
As a company director, you can complete tax returns online or by post. Typically, company directors are categorised as not self-employed – this means that you need to register for self-assessment using form SA1.
Information such as your address, full legal name, national insurance number and Unique Taxpayer Reference (UTR) are all required whilst filing a tax return.
There aren’t many exceptions for company directors filing a tax return, however, if your income is taxed at source and you don’t currently have any other sources of income, you don’t need to complete a tax return. The same goes for individuals who haven’t received a notice from HMRC to file a return.
How LJS Accounting Services Can Help
LJS Accounting Services are dedicated to helping clients with their tax returns, including company directors. It can be tedious having to deal with financial affairs on your own, especially when you have a business to run and other important aspects of your company to deal with.
We make it our mission to provide you with the best accounting services possible, including CIS Tax Disputes and Accounts. Having dealt with a plethora of different clients that have both small and large businesses, we can say that our professional approach is second to none, regardless of the sector you work in.
We have a wealth of knowledge and experience that allows us to deal with clients efficiently, offering expert advice, guidance and support at all times. Our team are ambitious and driven, proving their hard work daily through their specialist methods and techniques.
Here at LJS Accounting Services, we can promise you a service like no other. Tax returns are hard to manage alone, even more so if you have a busy day-to-day life.
If you’re a company director in need of support, don’t hesitate to contact us today by calling us on 0151 601 0001. We look forward to hearing from you in the near future.
Keli Evans, Director at LJS Accounting Services, excels in taxation and statutory accounts. With a focus on strong client relationships, she leads a diverse portfolio, overseeing vital financial aspects like VAT, payroll, pensions, and taxation with a holistic and committed approach.