As it’s coming up to that time of year again when Self-Assessment Tax Returns are due, here is some advice on submitting your Business Tax Returns

The forms to use for business tax returns vary based on your business structure. There are four main types of business structures in the UK as follows:

1. Sole Trader - Liable to pay tax and National Insurance by filling out a self-assessment tax return which can be found here www.gov.uk/self-assessment-tax-returns
2. Partnership - Involves two or more individuals that agree to share in profits or losses of the business. Each partner is also responsible and liable for other partners’ negligence or misconduct. The forms can be found here www.gov.uk self-assessment-partnership-tax-return-SA800
3. Limited liability partnership - The partner’s liability is limited to the amount they invest in the business. The LLP must be registered at Companies House and with HMRC. Members must submit a personal self-assessment tax return every year and pay income tax on their share of partnership profits and pay National Insurance to HMRC - you must also register separately as an individual and register the partnership for VAT if you expect your business’s sales to be more than ￡85,000 a year
4. Limited Company - Privately managed business owned by its shareholders and run by its directors. Any profits generated are retained by the company after it pays Corporation Tax.  They have annual reporting and filing requirements with both Companies House and HMRC using the form that can be found here CT600.

Some things to consider when submitting your returns to HMRC are:

Make sure you know when your assessments are due. The links above will help you to learn when this is. 

Submit your tax return online as this is much quicker and will help you to avoid missing deadlines. Proofread your submissions and double check important details such as your UTR number. This will also help you to avoid simple mistakes that can lead to your tax return being flagged.

Make sure you include all documents and information that is requested and that your expenses are business related and not personal.

The safest way to avoid any errors with your returns is to use an accountant. Woods Russell are professional and experienced accountants, and we can help you to relax in the knowledge that your tax submissions will be accurate and on time. For more information on this and any other tax related issues please visit our website https://www.woodsrussell.co.uk

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