Are you confused by CT600? Perplexed by P11D? Stumped by SA103S?
Are you confused by CT600? Perplexed by P11D? Stumped by SA103S?
Then you need this – a short guide to the most common HMRC forms, and an outline of what they’re all about and so whether they might apply to you:
All form references, thresholds and figures quoted relate to the 2011-2012 tax year. This is not a comprehensive guide to the requirements of HMRC.
Most of these forms must be completed online in the majority of circumstances, but there are pdf versions available to download from HMRC as well to help you prepare the relevant information.
Remember – this does not cover all the forms which you need to complete, just the ones which you’re likely to come across on a regular basis. And neither does it cover VAT registration nor VAT returns (which also now must be completed online).
At the end of the guide, is an example of how these forms might be relevant in a real-life situation
SA100 Self Assessment Tax Return
If you’re in business (self-employed or director of a limited company) you will definitely need to complete one of these. If you have income, or capital gain, student loan repayments, interest from investments, pensions, annuities, you make charitable gifts or you claim tax reliefs and allowances then you’ll have to complete one of these. Assume that you do. If you don’t, then HMRC will tell you (by sending you a SA251)
The SA100 Self Assessment Tax Return also has a number of ‘supplementary pages’ which you should complete depending on the nature of your income. If you’re completing the form online then these will present themselves for completion automatically. The most commonly encountered supplementary pages are:
SA102 Employment: complete one of these for each employment or directorship
SA103S Self Employment (short): complete one of these if you are self-employed and your turnover is less than £73,000 (in 2011-12)
SA103F Self Employment (full): complete one of these if you are self-employed and your turnover is less than £73,000 (in 2011-12)
SA104(S) and SA104(F) These are the forms to complete if you trade on a self-employed basis, but as a partnership.
SA105 UK Property: to declare income (or losses) incurred against property which you let out.
SA110 Tax Calculation Summary – if you want to work out your tax bill yourself
Limited Company Forms:
CT600 Corporation Tax Return: If your business is a Limited Company, then in addition to the individual’s forms listed above, the Company will submit one of the versions of this form to declare its liability for Corporation Tax
AR01 Annual Return: Not actually an HMRC form, but a form submitted to Companies House which lays out details of the directors and other information about your company. Called the ‘Annual Return’, it’s easy to confuse the terminology with your ‘annual tax return’.
If you or your partnership or limited company employ someone, then you, your partnership or limited company must be registered as an employer.
If you are a one-man limited company, then you are still an employer, because the company employs you, even though it is ‘your’ company. It’s tricky, this one, and causes a lot of confusion.
P45: The form which a new employee brings you when they start, and which you must process to register them as now working for you; and which you give them when they leave to hand to their next employer.
P46: For employees without a P45
P60: You must provide one of these at the end of each tax year, for each of your employees (including yourself, if it is a limited company). It provides a record of their income and taxation and they will use it to help complete their SA100 Self Assessment Form.
P14: You must complete one of these at the end of each tax year, for each of your employees, and submit it to HMRC. It provides a summary of their details, and of what payments were to them, and on their behalf (ie. Gross pay, tax deducted and national insurance contributions)
P35: The P35 is a summary of all the P14 details for all the employees of a single employer.
P11D: You must complete this if you pay expenses, or provide benefits to directors or employees earning more than £8,500 in the tax year. This must be completed if you pay a mileage allowance, provide health insurance, or make a loan to an employee or director, amongst other things.
So, if you haven’t gone goggle-eyed enough, here’s an example of how these forms might be applicable in a real life situation:
Patsy has a job, working part-time for a local business. The business pays her, and deducts tax and national insurance on her behalf, which the business then pays to HMRC. HMRC have told Patsy that every year she must complete a SA100 Self Assessment tax return.
As well as working part-time, Patsy makes patchwork bags and clothing, which she sells at craft fairs. This means that she is self-employed, and as well as having to register as self-employed, she also completes an SA103S as part of her SA100.
Patsy’s friend Lily who is a mother of 2 sometimes helps out at the craft fairs, and helps Patsy to make her patchwork clothing. Although Lily does this voluntarily, after a while they realize that she is making a big difference to what Patsy can make and sell, and so they decide to go into partnership. They have the partnership ‘LilyPatch’ set up properly by a solicitor, and they find an accountant who can assist in completing all the relevant forms. Now both Patsy and Lily must complete SA100 and SA104S, but Patsy no longer needs to do SA103S.
Then Lily inherits both a house, and some money from her Great Aunt. She wants to keep the house and let it out, and she wants to invest some of the money in ‘LilyPatch’. They create a website, and start to sell online. This really takes off, and because Patsy still has her part-time job, they employ someone for just a few hours a week to assist with parceling and posting. ‘LilyPatch’ now needs to register as an employer.
Both Patsy and Lily both still complete SA100 and SA104S. Lily also completes SA105 because of the rental income from her Aunt’s house, and the ‘LilyPatch’ Partnership needs to process P60, P14 and P35 annually.
The business is really booming now, and Patsy gives up her part-time job. On the advice of their accountant, they decide it is time to convert the Partnership into a Limited Company, with both of them as Directors. After all the necessary forms have been completed for this, they will now on an annual basis need to complete SA100 each, SA102 each, because they are now both employed by ‘LilyPatch Limited’, and Lily must complete SA105. ‘LilyPatch Limited’ must also complete CT600 and P60, P14, P35 and also probably P11D.
Business is doing so well that Lily decides she needs to take on someone to help her with her children . Lily will now need to register as an employer in her own name, and as well as all the previous forms, she will need to complete P60, P14 and P35 to correctly report on the employment of her nanny.
So… I guess you’re even more confused now…