Jefferies Newsletter January 2016

10 Most Common Online Self Assessment Issues

The deadline of the 31st January 2016 is fast approaching for filing 2014/15 Self Assessments online, thousands will probably file late and 50% will leave filing until January.

Here are 10 of the most common problems, issues and errors that come up.

  1. Not leaving enough time to register for Self Assessment – It can take 20 working days (this is usually 4 weeks) to complete the registration process, then for online returns, allow 10 working days (21 if you’re abroad) to register because HM Revenue and Customs (HMRC) posts you an activation code.
  2. Lost Login details – Your account will be locked for 2 hours if you enter the wrong user ID or password 3 times.
  3. Leaving it too late to get help – If you need help from an accountant don’t leave it too late as they will need to carryout AML and other checks before they can file your return, they will also need your UTR.
  4. Failing to complete all the parts of the return – For example leaving out PAYE information
  5. Failing to press ‘submit’ – you would be surprised how many people complete the return and then stop without submitting or leave submission and then forget to do it
  6. Missing out details of your Pension Provider
  7. Failing to check the calculation – Most people do a rough calculation of what they owe but fail to check the HMRC calculation only to find out they have made a mistake
  8. Using invalid characters such as # ‘ ” in boxes where these are not allowed
  9. Not paying the tax they owe by 31st January
  10. Failing to explain where estimates and provisional sums have been used

How can you limit a Directors/Personal Guarantee?

If you have a Business and you want to borrow money, you will probably be asked to give a Personal or Directors Guarantee.

Most Directors don’t want to give guarantees as it makes them liable rather than their business and the purpose of having a limited company was to limit their personal liability.

So it’s a common dilemma.

What can you do to reduce your risk?

  1. Would you be prepared to pay a higher rate of interest? there are lenders who for an increased rate will agree not to ask for PG’s or DG’s
  2. If you aren’t prepared to give a guarantee you should make this clear upfront with the potential lender, it will save time and money.
  3. Limit the terms of the Guarantee – don’t let the guarantee be unlimited or unconditional
  4. Agree terms for relief – for example when a % of the debt has been repaid
  5. Decrease the Guarantee if the business achieves specific goals, for example a target net worth
  6. Set rules for when the Guarantee can be called on for example when a set number of repayments are missed
  7. Avoid ‘Joint and Several’ Guarantees as not all business owners may have equal shares
  8. Avoid co-signing by Spouses
  9. Avoid using your main residence in the guarantee
  10. Consider whether Personal Guarantee Insurance could be obtained and used

We also talk about the following topics in this months newsletter:

  • 10 things a new business must do to pay less tax

  • Why it could be worth taking a Dividend before April 2016

Download your copy of our January 2016 Newsletter here.