Filling in your own tax return? Look out for this important tip that could save you thousands.

Filling in your own tax return? Look out for this important tip that could save you thousands

13 January 2016

Here at Umbrella Accountants we’ve seen a number of instances recently where clients have chosen to complete their own self-assessment tax returns but completed them incorrectly resulting in large tax bills.

It’s vitally important to understand that being a Director and Shareholder of a Limited Company doesn’t class an individual as being “Self-Employed”.  If these sections are completed using information from the Limited Company accounts it can result in not only a nasty tax bill but also charges for Class 4 National Insurance that can also run into thousands.

In order to enter the correction information any Director’s Remuneration should be recorded in the Employment Section and then under the Income section where it asks for “Dividends from UK companies” the net amount of dividends for the tax year should be entered.

If you are unsure about any aspect of completing your tax return Umbrella Accountants can complete the return for you for £150 including VAT or members of our Accounts Max scheme have a tax return included each year as part of the package. Learn more about the other amazing benefits of Accounts Max.