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Have you registered your company for VAT

Paystream News

David McManus

Monday 3rd Sep, 2012

If you have recently become a Director of your own personal service company you'll be aware of the significant, legitimate, tax advantages which are now available to you.

However with those advantages come responsibilities not only because you are a director of a limited company, but in your own right as an individual taxpayer.

Most people whose main or only source of income comes to them under PAYE don't have to concern themselves with making a Self Assessment Tax Return each year.

Making the transition from an ordinary employee to a company director means you have to register with HM Revenue & Customs and will then be sent a notice to make a return for the tax year in which you first became a director.

The time limit for registering your obligation to make your first Return is six months after the end of the tax year (5 April). So if you became a Director of your own company say on 1 February 2012 you need to have registered with HMRC by 5 October 2012.

HMRC argue that applying this rule ensures that both the taxpayer and themselves receive sufficient notice to be able to make a Return and pay any tax due on time.

Under the new HMRC penalty regime there are automatic penalties for late filing of Self Assessment Returns and for people who pay their tax late.

PayStream's Personal Tax team can take the hassle out of the registration process and ensure you meet all the personal tax obligations of being a director – for more information contact them on 0161 929 6000 (option 3) or email
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