Self-Assessment
Self-assessment isn’t just for sole traders. Oh no. It’s also for company directors, partners, trustees, and individuals in senior roles, and believe us, personal tax obligations can quickly get complicated. This is especially true when income comes from multiple sources or when organisations span different functions and/or locations.
At Framework, we make self-assessment a doddle by combining vast tax expertise with an understanding of your wider situation. Doing so helps us make sure every return is filed correctly, all relevant reliefs are claimed, and deadlines are never missed.
The result is more clarity for you and no unwelcome surprises from HMRC.
What is self-assessment?
Self-assessment is one of the most common taxation situations you may have to deal with in the UK. It’s the process of declaring personal income and gains to HMRC so they can figure out what tax is owed, and when it’s due.
However, while it’s most often associated with sole traders, many directors, trustees, and high-level employees still need to complete a return.
Here are some of the people and roles that still need to fill out a self-assessment tax return:
Company directors who draw dividends and salaries
Partners in LLPs or professional services firms
Trustees and charity officers with benefits or allowances
Individuals receiving rental or overseas income
Employees with complex benefit packages or share schemes.
Getting it right gives you a bounty of accurate declarations, full compliance, and a tax bill that isn’t too intense to handle.
Why is self-assessment important?
For individuals in leadership roles, mistakes or missed deadlines can lead to HMRC penalties and a degradation of your financial integrity. You might also lose out on allowances and tax reliefs, and pay more than you need to.
Accurate self-assessment protects your personal financial position, but it also reduces wider risks. Missed filings or penalties can trigger HMRC scrutiny, for example, and appear in due diligence checks. They might even affect ‘fit and proper person’ status for directors or trustees.
This means that getting it right reinforces your credibility and, by extension, encourages trust in the organisation(s) you represent.
How self-assessment supports leadership and governance
Efficient self-assessment underpins good governance, as well as helping you fulfil your responsibilities. Directors and trustees who keep their affairs in order project professionalism and accountability, and accurate reporting feeds into broader financial planning by aligning personal and business interests.
This means that whether you’re leading a medium-sized business, running a charity, or sitting on the board of a sports governing body, proactive self-assessment can offer confidence for you and your organisation that everything is covered.
It can also give you better options around dividends, benefits, and/or overseas income, and provide assurance for stakeholders, funders, and auditors that financial responsibilities are met.
Four common self-assessment mistakes
Missing deadlines is the biggest issue we see, and HMRC fines are automatic and can escalate quickly.
Overlooking allowances such as the personal savings allowance, dividend allowance, or gift aid relief is also relatively common, and if they go unclaimed, you pay more tax than you need to.
Incomplete reporting is another big one. This can cover forgetting to include benefits in kind, overseas income, or director’s loans, all of which can cause compliance issues.
Poor record-keeping is another common self-assessment mistake people make. Piecing together everything at the last minute often leads to missed claims, rushed filings, and errors, all of which can be avoided.
How we can help
At Framework, we take self-assessment off your plate so you can focus on leadership and running whatever it is you’re involved with. Our service is vast and varied, and can include:
Preparing and submitting accurate tax returns
Calculating liabilities and identifying reliefs and allowances
Integrating returns with payroll, dividends, and company accounts
Advising on the timing of payments, dividends, and other income
Providing clear reports so you and your board know everything is handled.
As well as filing the return itself, we can provide context, advice, and integration with the rest of your finance functions. Done like this, and self-assessment isn’t a last-minute scramble, but a seamless part of your year-round financial management.
Find out more
Self-assessment doesn’t have to be stressful, and with Framework, you gain a partner who understands both the technical detail and the bigger picture, from governance to growth, and everything in between.
Get in touch to discover how we can help you and your organisation with self-assessment.