Self Assessment Tax Return Checklist 2009-10

To help you collate the information you need to prepare your self assessment tax return for 2009/10 we have prepared a useful checklist which you can download here.

In our experience, the list of income, deductions and capital transactions covers the majority of our clients but if you have other income, tax deductions or gains/losses not listed, you may need to include those on your tax return.

HM Revenue & Customs must receive your tax return by 31 January 2011 to avoid a penalty.

At HRBS we submit all tax returns online. However, if you wish to prepare a paper return, the deadline is midnight on 31 October.

The earlier you prepare your accounts and tax return the better. You can claim any refunds promptly to help your cashflow and where tax is due; you will have plenty of time to plan your tax payments.
Read more about Self Assessment Tax Return Checklist 2009-10

Popularity: 7%

Cut red tape … get a P11d dispensation

For those of you who are one-person limited companies and/or have employees, you may be aware that reimbursements of expenses (excluding mileage within approved rates) should be reported to the Inland Revenue on P9d or P11d and included within the claimant’s tax return. This can add quite a burden onto the company’s administration and also incur fines if returns are not completed correctly or submitted late.

However, there is an easy way to reduce this administrative burden – apply for an expense dispensation.

Depending upon the type of business, various business expenditure can be included within the dispensation and may remove the need to complete p9d/p11d for some employees (car, fuel, health insurance etc benefits must still be reported).
Read more about Cut red tape … get a P11d dispensation

Popularity: 10%

Loans to directors – form p11d

It is illegal under current company law for companies to make loans to its directors unless it is an advance to pay company expenses. The loan must also be approved by the shareholders and repaid within 6 months. HMRC consider loans to directors as benefits in kind and the interest chargeable at the HMRC standard rate is taxable and must be reported on form P11d by 6th July. Fines are chargeable by HMRC if the forms are not received by 19th July.

Furthermore, if the loan is not repaid within 9 months after the year end, the company must pay corporation tax on the loan which will only be refunded if the loan is repaid. Unfortunately the tax is not actually refunded as it is offset against the company’s corporation tax liability for the accounting period in which the loan is repaid. This is obviously not good for the company’s cashflow.

However, if the loan is below £5000, then under current HMRC rules, no benefit in kind applies.

Read more about Loans to directors – form p11d

Popularity: 4%