Reply With QuoteYou have income from a business, income from a PAYE job, and HMRC will want to know what other income streams or deductions you should have you have (interest from deposits, student loans etc).
A tax return doesn't sound unreasonable.
Why do I need to have a personal tax return as well as a business one ? I am self employed, and also have a p/t paye job..
You have income from a business, income from a PAYE job, and HMRC will want to know what other income streams or deductions you should have you have (interest from deposits, student loans etc).
A tax return doesn't sound unreasonable.
If you are self employed then yes you need to do a tax return. You and your business are the same legal entity as I understand it (if sole trader or partnership). If the business is an Ltd then you are an employee as so may not need to do a tax return.
Full list here -
https://www.gov.uk/self-assessment-t...d-a-tax-return
Last edited by MB2; 20th March 2017 at 10:10.
Business earnings are completely different from personal earnings so there will necessarily be two returns or sets of figures. If your business takes in £100K/yr it doesn't mean that you do, so the revenue need to know how much you get paid. It doesn't have to be particularly complex and if you are already paying an accountant to look after your business books you may find they will do your personal too.
I get my personal chucked in for keeping them on to do my business books.
The whole tax thing boggles my brain as my income derives from a small salary and share dividends.
I pay an accountant to deal with it all. He sorts our the self assessment / annual return and deals with everything. I simply keep a record or income, expenses and receipts and email these to him when requested. His fee is money well spent in my opinion.
I dont have any personal income per se. My paye job is just that, deducted at source. I obviously understand the need for the business tax return ( sole trader)
Last edited by sestrel; 20th March 2017 at 12:12.
Originally Posted by sestrel
You only have one tax code / tax free allowance, regardless of how many jobs or businesses you have.
The salary from your PAYE job uses up some/all of that allowance, so they need to know your income from *all* sources in order to correctly calculate how much tax (and at what rate) you need to pay.
Ok, but if the tax money is taken out by my employer, dont hmrc already know how much I earn from that job?
If I just had one job as an employee of a firm/company etc, (as I used to some years ago) I never needed to submit a tax return at all. ??
Income from one source isn't assessed in isolation from all other sources. You have one allowance - not one per job.
So why dont you have to submit a personal return if you are employed then
A lot of people do.
I've been required to submit a return when I've had one job. Even breaching the higher rate threshold can put you on the radar.
Yes but it is not compulsory is it.
No where's that string out of the minotaurs maze....
It is if HMRC ask you to do so.
I imagine what he means is its not mandatory for everyone, which is true, there is usually a trigger though, my wife had to do one for a few years when she declared a Yoga class she gave, £30 a week it was and it was enough for HMRC ask for a personal tax return, after a few years they said she could stop doing one.
HMRC has never asked me for one directly.
For your part-time work that is PAYE your tax is deducted by your employer - HMRC know what you earn from that and will receive their dues accordingly.
For your other self-employment they know nothing, which is why they will need a tax return to assess that part of your total income.
When you look long into an abyss, the abyss looks long into you.........
Yes indeed, that is so, and I am happy to submit a tax return for my self employed work. Again, why then, do I need to also submit a "personal' tax return, as I have no other income..
Then it will be nice and easy.
Your business tax return tells HMRC about things like VAT, employer NIC, expenses and corporation tax. Your personal tax return tells HMRC about income, pension arrangements, letting income and so on. Different returns as they affect different taxes.
That's two income sources straight away.
Well, thanks for that. Shame everything cant be done in one return. Bit of a bonus for bookkeepers and more cost for me sadly.
You keep mentioning 2 tax returns, but you put all your income sources on one tax return. If you are in a partnership that would require its own return.
But just wait till 2018 when quarterly returns come in then you'll need to do 5 per year (4 quarterly plus 1 annual)!!! If you also have a company that would be 10 per year, crazy!!
Yes but there are still 2returns and 2 bills. If i have to pay for 5 times 2 returns a year, at the same as i pay now, I and millions of others will be closing our business for good.
I'm in the same situation as you, work 3 days a week PAYE on a contract and am self employed on other work. All my earnings are entered on the tax return, my accountant always wants to see my payslips as payroll can make mistakes. You can choose how you pay tax, so i use my tax free allowance 11K ish on the PAYE job and pay tax on my self employed income but you can do it the other way round. I have other small unrelated income and that goes on the return in a different section. All fairly straight forward but easier with an accountant of course well worth the money!
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