The Practical Guide to Limited Company Tax
If you have chosen to operate your business as a limited com...
By Lynne Gowers on 20th September 2016
In the annual accounting cycle of your business, there are a few key dates that you need to be aware of. The Boox app will automatically notify you when you are approaching some of these events, and below is a brief guide to what you can expect to happen and what your responsibilities are.
Please note that this does not cover all deadlines, just some of the key ones, and is general advice only, so please contact your dedicated Boox accounting team if you have any specific questions relating to your company.
When your business reaches the end of its financial year, there is 9 months for your limited company financial accounts to be submitted to Companies House and for corporation tax to be paid. The corporation tax return must be submitted within 12 months of the financial year end.
Your Boox accounting team will take care of this for you and once your financial year end has past they will be in touch in the coming months to request anything they may need from you. A set of draft accounts and a return will be prepared and sent to you, as the company director, for approval.
Once the accounts have been approved, we will submit these to HMRC and Companies House on your behalf. Your Boox accounting team will provide you with details of how to make payment for corporation tax to HMRC.
Providing that you have been following the pay advice in your pay breakdowns, you should already have the funds set aside to make this payment.
Your day-to-day invoicing and expenses will not alter when your financial year has ended, so continue to add these as normal.
A new tax year begins on 6th April each year. The tax year is relevant to your personal earnings as well as personal mileage claims.
Boox will prepare your end of year payroll return and submit this to HMRC once approved by you. We will subsequently send P60s to you and any employees which will show the salary taken during the tax year. This process will be completed by the end of May.
You are personally responsible for reporting to HMRC details of your salary, dividends and any other income (not just from your limited company), in a self assessment tax return by 31 January of the following year. This is then used to calculate if you owe any personal tax or if you are due a refund. We would recommend that you don’t leave this to the last minute, to avoid any nasty surprises and allow you to prepare for any payments on account.
No time to prepare your self assessment tax return? Let Boox do it for you. Click here for details of this service or contact the personal tax team.
For personal cars being used on business, HMRC has set Approved Mileage Allowance Payments. These are currently the first 10,000 miles of travel for business at a rate of 45p per mile, with any mileage after this point being claimable at 25p. When adding your mileage to the Boox app the correct rate is adjusted automatically based on how many miles have been entered in the tax year to date. This amount is reset at the start of each tax year, so if your mileage has been claimable at 25p in the tax year up to now then you will be back on the 45p rate until your accrued mileage exceeds 10,000 in the next tax year. For further information go to https://www.gov.uk/expenses-and-benefits-business-travel-mileage/rules-for-tax
A confirmation statement is required once per year so that companies can provide up-to-date information for inclusion on the public register. Your accounting service with Boox includes assistance with the completion of each confirmation statement. One of our accounts assistants will contact you when your statement becomes due and will ask you to confirm that certain information we hold for you is correct. This information will then be submitted to Companies House to meet their filing deadline. Companies House charge £13 for the confirmation statement and Boox will recharge this cost to you via direct debit. Please note that there are certain changes that Companies House should be told about immediately, without waiting for the annual confirmation statement.
Our guide to closing your business explores some of the options for closing or suspending a limited company
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