If you choose to freelance through a Limited Company then your personal finances are separate to your company’s finances - you and your company are separate legal entities, therefore you as a director have to prepare a personal self-assessment tax return each year.
Your personal tax return will give HMRC details of the amount of money you paid yourself as a salary and how much you received in dividends from your company.
You must also include details of:
- Any other investments (stocks and shares) you may hold
- How much interest you received on your savings
- If you made any money from foreign investments
- Money received from renting out any property.
There are some reliefs which will reduce your tax liability. If you made pension contributions during the year or gave money to charity, these both have to be declared on your return as well.
The personal tax year runs from 6 April to 5 April which will probably be different to your company’s financial year.
Your Self Assessment tax return is usually due at HMRC on 31 January following the end of the tax year, for example 6 April 2019 - 5 April 2020 would be due with HMRC before 31 January 2021.
We can prepare and submit your personal tax return through our online Client Area. You must complete this by 30 November each year to guarantee submission in time for the end of January deadline.
This information is for general information only. We take no responsibility for any action taken or refrained from in consequence of its contents. Always seek our professional advice specific to your circumstances before acting.