What’s the difference between an annual return, a personal self assessment return and a company tax return?

What's the difference between an annual return, a personal self assessment return and a company tax return?

The tax return is a very important part of our business lives – but it’s still very difficult for many people to really know and understand the various ins and outs. Naturally when you’re dealing with the financial side of business there are going to be some complexities you might not necessarily have thought about.

Tax can be confusing. But to help alleviate some of those worries we will set out to clearly define three different types of common tax returns. These are the annual return, personal assessment return and company tax return.

We’re all about making things simpler to understand, so when you file your tax return with us you will know a lot more about the various differences between the three – which should help make the whole process much smoother.

First Of All – Why Are There So Many Different Types Of Return?

The short answer as to why there are so many types of tax return is that there are a lot of different types of needs to fulfill. There are limited companies, sole traders and holding companies – offshore companies too – so it’s natural that there are different ways of paying tax.

For most people, it’s still quite complicated. As a result it’s much less likely that the different types of return will be too meaningful – but let’s make it very clear.

An Annual Return Is… All About Information

When you file your annual return as a company, you’d be forgiven for thinking that there are finances involved. There are a lot of things that an annual return is useful for – but not for taxes.

The main thing about an annual return is that you are essentially providing an update on information about your company to Companies House. This is to ensure that things like shareholder information, company accounts and director information is as complete and up to date as possible.

If you do not file an annual return, you will be liable to penalties. It is a legal requirement of running a limited company. An annual return service can help you in fulfil this requirement with an express option for 24 hour filing meaning you can do this at short notice.

A Personal Self Assessment Return Is… All About Individuals

Self-assessment is notably used by people in the position of being self-employed – although if you have a company self-assessment does still apply as directors of a company still need to file returns. This is especially the case when it comes to filing dividends. So if you’re the director of a company it still applies to you, and you can easily file both your company return and your individual self-assessment return with us.

However sometimes if you are self-employed, you might not be registered as a limited company but be working as a sole trader without any employees. Individuals including traders like carpenters or plumbers are often self-employed. However many digital and IT professionals freelance as self-employed individuals too. You can’t really determine what industry is most appropriate for self-employed. However, a key feature of being a sole trader is that you are required to file your own self-assessment return.

You will need to keep track of all your business expenditures and report it to assess your own tax owings. To make this easier you can file your self-assessment tax return with our guaranteed service.

A Company Tax Return Is… All About Companies

If you own a limited company you will need to complete a company tax return. These have different requirements than self assessment returns and are more detailed. The core difference is that company losses are protected by the limited company – something that is not the case with self-employed people.

The most common type of tax return. It’s also the one we’re experts in completing within 7 working days. We file 100% electronically, eliminating the need for annoying paper forms and it’s often better value to file a return from just £49 and trust us with it.

There is a filing fee associated with a company tax return (included within our pricing) and there are also costs associated with getting it wrong or giving yourself too little time to file. To create the peace of mind you need you can quickly and easily file your tax return with us in 4 simple steps.
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Whichever Type Of Return You Need – File It With Us

One of the biggest reasons why our customers choose us the guarantees and experience we bring. Having your return handled in a quick and simple way by chartered accountants means you save time, save money and can focus on running your business.

So, hopefully now when you file your tax return with us you’ll appreciate the differences between the the three main kinds of return. Check out the rest of our blog for more great information and updates.

By Alex Novakovic at MadeSimple – Follow Alex on Google+

3 thoughts on “What’s the difference between an annual return, a personal self assessment return and a company tax return?”

  1. whoah this blog is fantastic i love reading your articles. Keep up the good work! You know, many people are searching around for this information, you can help them greatly.

  2. Nice and informative article. Thanks for sharing the information with us. People sometimes find it very difficult to differentiate between annual return and personal self-assessment return. But in your article, you make it very clear. I find the article very helpful.

  3. Many many thanks for sharing with us what’s the difference between an annual return, a personal self-assessment return and a company tax return? I am finding this kind of article within last few days. You have given me the keys to the kingdom! A lot of Great Tips and Very nicely written.

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