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Tax Returns

Filing a tax returnWe have designed the easiest, most cost effective way for you to deal with your tax returns.

MLM Consulting is registered as an online agent with Inland Revenue and can help with all online services. Our Tax Department deals with a large number of Self Assessment Tax Returns at competitive prices and can help you complete your tax return.

We can save you a lot of time, worry, and money by handling your self assessment for you. We will do all the necessary computations, complete your return, and even offer advice on how you can minimise your tax liability.

We can act as your agent, dealing directly with the Inland Revenue on your behalf.

Have you thought about becoming self employed and starting your own business?
If you have thought about becoming self employed then you will need to inform the Inland Revenue. Whether you continue in employment whilst working within your new business or leave your previous job to become self employed full time, you will still need to register with HM Revenue and Customs.

The process can be completed in a relatively short period of time and we have experience working with a large number of self employed individuals. Once this registration is completed, you will need to pay your Class 2 National Insurance and complete a Self Assessment Personal Tax Return.

Have you just become self-employed? Let us help you get started!
Whether you are self-employed, in a partnership or a director or employee of a company there are many things that affect your tax liability.

MLM Consulting provides a comprehensive service which includes tax planning, the completion of your tax return and submission to HM Revenue and Customs. We will also advise you on how much tax you have to pay and when, and will deal with the HM Revenue and Customs on your behalf. We will make you aware of any relevant tax planning opportunities and changes in legislation which might reduce your tax liabilities. We can also assist if the HM Revenue and Customs decide to enquire into your tax return.

Self employed

Self employed painterIf you are in business you will need to complete the self-employed pages on your tax return. We will advise you on the best way to keep your records and will assist with the preparation of your annual accounts.

Did you know that you have to register with HM Revenue and Customs within 3 months of becoming self-employed to avoid a £100 fine? Let us help you avoid this and other pitfalls.

We can help you register as self-employed, advise on the best ways to keep your books and records, advise as to what expenses you can and canít claim and answer any other queries that you may have.

Our down to earth and friendly approach will help ease you into the world of self-employment. Contact us now to arrange a free initial consultation.

One of the first and most important decisions to be made when you start your business is the legal structure. There are two main options open for you Ė either to set up a limited comapny and become a director and employee of that, or to be a self-employed sole trader.

Financially, the biggest difference between the two is how you are assessed for tax by Her Majestyís Revenue & Customs (HMRC). Limited companies are legal entities in their own rights, and are assessed on their turnover and profit with a company tax return. Sole traders are self-employed and must complete a self assessment tax return every year. Unlike being an employee, you wonít be taxed on your income. Instead you will be allowed to deduct business expenses and be taxed on the profit you have made.

Here are the basics you’ll need to stay on top of:

Check you are truly self-employed:
An employee would have extra tax benefits if they claimed self-employed status, so itís vital to be able to demonstrate that you are truly self-employed. This is particularly important if you are running a small business in your spare time and are employed in a day job (it is possible to do both in the taxmanís eyes). Your accountant will be able to give you specific advice.

Get a business bank account:
Even as a sole trader you should have a separate bank account. This will make it easier for you to do your tax return, and keep track of how much money your business actually has.

Architect keeping records for taxKeep accurate records from day one:

To be able to fill out a self-assessment tax return correctly, you need to keep a clear record of all your sales and purchases. This includes all invoices you have issued and received, plus any receipts.

You will also need to keep a record of money you have personally taken out of the business, such as when you withdraw profits, and of course business bank statements.

All of this paperwork will help you work out what profit your business is making. It can be as simple as revenue in, minus expenses out… although some purchases may not be counted as genuine business expenses. Whatever is left is your profit and that you will be taxed on.

There are some allowances you can use to reduce the tax impact such as capital allowances on any equipment you buy. There is a list of these allowances on the HMRC website, and your tax adviser will help you work out which if any apply to you.

What else you’ll have to pay tax on:
When you come to fill out your tax return you will also be taxed on any other income you have, such as any salary from paid jobs you have, interest from any savings and investments, rental income from property you own and gains by disposing of assets.

Making the tax return process easy:
Don’t leave it till the last minute. The deadlines for filing are generous, but the worst you can do is put it to one side and forget about it. Deal with your tax return as soon as you can – it’s then a horrible job out of the way.

Your deadlines:
The tax year runs from 6th April to 5th April of each year.Self assessment

Despite it being called self-assessment, you can still get HMRC to crunch the figures for you and work out what tax is due. If you want to send in a paper return, you must do this by 30th September. You can send it in after this date (but before 30th December) and they will still work it out, but won’t guarantee to tell you what tax is due by the payment deadline.

If you do your return online the system will work out the figures for you and how much tax is owed.

Self-employed people must pay tax in three instalments. The first payment is “on account” by 31st January, and is usually half of your previous year’s tax bill. You then have to make a second payment by 31st July, usually the same amount you paid in January.

Finally on 31st January the following year you must pay a final balancing payment, calculated from your actual profits for the year. Of course if you have overpaid tax you will get a refund. This seems complicated but our tax adviser will be able to show you what it actually means in your situation.

Self Assessment

If you currently complete a Self Assessment Tax Return, this has to be completed and returned to the Inland Revenue by 31st January.

If you submit your return late you will incur an immediate £100 fine and will suffer further interest on this fine and any amounts which are outstanding. You will also need to pay the balance of the tax owed for the last tax year by 31st January.
Many people also have to make payments on account towards their tax bill for the next tax year. These payments are based on the amount of tax you had to pay through Self Assessment in the last tax year and are payable in two instalments due on the 31st January and the 30th July. The Inland Revenue will also charge interest if either of these payments are late.

There are automatic penalties for paying tax late!!!

MLM Consulting submits your returns online allowing you to keep track of which payments are due. If we are submitting your return near the deadline, the online system will help by providing immediate confirmation that your return has been submitted successfully and securely. The online system also provides information about any payments due and any interest that you may incur.

Remember to get professional advice from our tax adviser before taking any action!!!