Operating your business as a limited company contractor brings with it significant opportunities to save tax and National Insurance Contributions compared with the individual who is in permanent employment and paying tax under PAYE.
However, being a Director of a company, albeit your own, brings with it certain other responsibilities and obligations including the need to register as an individual taxpayer for the Income Tax Self -Assessment system.
If your limited company was incorporated and you became a Director at any time between 6 April 2013 and 5 April 2014 you need to notify HM Revenue & Customs of your chargeability to tax before 5 October 2014.
The reason for this is so that HMRC can register you for Self-Assessment and issue you with a "Notice to Make a Return". This Notice requires you to make a Personal Tax Return, file it electronically with HMRC and pay the tax due by 31 January 2015.
HMRC impose penalties, interest and surcharges if this date is missed and tax is paid late as a result, so it is best to ensure that you begin the registration process straight away.
If you already had a personal Unique Taxpayer Reference before you started your limited company, you will already be within the Self-Assessment system so won't need to register again.
For anyone who has yet to register and complete their 2013/14 Personal Tax Return, PayStream can help remove the stress of the whole process. Call the Tax Team on 0161 929 6000 or email them at firstname.lastname@example.org. The Tax Return service costs only £186 including VAT until 30 November 2014 but you'll need to contact them as soon as possible to ensure you meet the registration deadline.