How do I claim entrepreneurs relief?

Chris Andreou

April 21, 2021

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You can claim Entrepreneurs' Relief on your annual Self Assessment tax return, under the 'Capital Gains Summary' section.

It is also possible to claim the relief on the sale of other assets which are not shares. The rules on this are different and it is best to discuss your individual case with a qualified accountant.

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What is a Self Assessment tax form SA100?

The SA100 is the main document you need to fill when completing your Self Assessment tax return. There are two ways to complete your Self Assessment tax return: you can make an online submission, or download the form SA100 and make a paper submission.

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How do I close a Limited Company?

How you close down your limited company will differ depending on whether your company is solvent or insolvent.

1. Closing down a solvent company

You may apply to strike off your company from the Companies Register or start a Members' Voluntary Liquidation.

2. Closing down an insolvent company

You must arrange the liquidation of your company. In certain circumstances, you may be able to avoid liquidation by applying for a Company Voluntary Arrangement.

Further information is available on our resource on the company closure process.

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How do I close my business?

If you want to stop trading as a sole trader or you're ending or leaving a business partnership, you need to inform HMRC. You're also required to send a final tax return.

If you're closing down a limited company, how you close your company will depend on whether your company is profitable or if it has reached the point of insolvency.

If you're closing down a solvent company, you may apply to get your company struck off the Register of Companies or start a members' voluntary liquidation.

If you're closing an insolvent company, the company will have to be liquidated.

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How do I file a Members Voluntary Strike Off?

A Members Voluntary Liquidation is the process of bringing a solvent company to a close. This option is available only if your company is solvent, and one of the following conditions apply:

  • You want to retire
  • You want to step down from the family business, and no one else wants to run the company
  • You don't want to run the business anymore

To apply for this process, you need to:

  • Make a ‚ÄòDeclaration of solvency' (for English and Welse companies)
  • Request for form 4.25 (Scot) from the Accountant in Bankruptcy (Scottish companies)

After signing the declaration or form, there are a few additional steps you need to take before completing the process. This information is available on the HMRC website.

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How do I file for informal strike off?

To have your company struck off the register, you need to send Companies House form DS01. The form must be signed by a majority of the company's directors.

Further information on the responsibilities of closing down a company properly, when a company cannot apply to be struck off, withdrawing a strike off application and more can be found at HMRC's resource.

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Closing a limited company

How you close your limited company will depend on whether your company is profitable or if it has reached the point of insolvency.

If you're closing down a solvent company, you may apply to get your company struck off the Register of Companies or start a members' voluntary liquidation.

If you're closing an insolvent company, the company will have to be liquidated.

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What are Self Assessment payments on account?

Paying your taxes can seem complicated, particularly if you're newly self-employed. There are numerous elements you need to understand and stay on top of, and one of these is the payment on account.

To help you get a grasp on the essentials, we've written up a quick guide below. It'll cover what a payment on account is, how it works, late payment penalties and other key information you need to know.

Payments on account are advance payments for your tax bill that are spread out across the year. You'll need to make two payments each year, and these are due on 31st January and 31st July.

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When is the next self assessment deadline?

The deadline for filing Self Assessment is 31 January following the tax year end. For example, the deadline for the 2020/2021 tax year is 31 January 2022.

Payments for your tax bill are due on 31st January after the end of the relevant tax year. If you're making payments on account, there are two payments due each year on 31st January and 31st July.

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How to pay your Self Assessment Tax

You may already be familiar with the process of paying your Self Assessment tax bill.

Yet, it's always helpful to have a guide on hand-one that you can look over just before you make your payment, so you can be sure that you haven't missed out on important details that can put you at risk of incurring a penalty.

  • Submission of Self Assessment tax return: You need to submit your online tax returns by 31st January. Paper returns are due earlier; these must be filed by 31st October.
  • Payment: Any personal tax due for the previous tax year (6th April-5th April) must be paid up by 31st January. This means that your 2019/20 tax year must be paid up by 31st January 2021.
  • Payments on Account: "Payments on account" are advance payments for your tax bill that are spread out across the year. You'll need to make two payments each year, and these are due on 31st July and 31st January.

Tip: If the payment deadline falls on a public holiday, make sure that your payment is submitted by the final working day.

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When do I need to pay my self assessment tax bill?

Payments for your Self Assessment tax bill are due on:

  • 31st January: You'll need to pay tax that you owe for the previous tax year, as well as your first payment on account. For the 2020/21 tax year, the first payment on account is due by 31 January 2021, while the balancing payment is due on 31 January 2022.
  • 31st July (following the end of the tax year): You'll need to pay your second payment on account. For the 2020/21 tax year, the second payment on account will be due on 31 July 2021.
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What are Payments on account?

Payments on account are advance payments for your tax bill that are spread out across the year. You'll need to make two payments each year, and these are due on 31st January and 31st July.

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Self Assessment tax returns for the self employed

If you're self-employed-either as a business owner or freelancer-you will need to complete a Self Assessment tax return.

It's one of the most important tax documents you will need to handle, and there are numerous details you'll have to keep in mind, including deadlines and late penalties.

Our guide offers a quick overview of the essentials-so it's just the article you need if you're getting started.

A Self Assessment (or Self Assessment tax return) is a form that business owners are required to submit to HMRC every year. It details how much you've earned and your sources of income, which enables HMRC to work out the Income Tax and National Insurance you need to pay.

This applies to self-employed workers, who-unlike employees-don't have their income tax automatically deducted from their salaries.

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How do I unlist a from companies house?

To have your company struck off the register, you need to send Companies House form DS01. The form must be signed by a majority of the company's directors.

Further information on the responsibilities of closing down a company properly, when a company cannot apply to be struck off, withdrawing a strike off application and more can be found at HMRC's resource.

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How do I pay my self assessment?

There are various ways to pay your Self Assessment Tax bill.

Same or next day

You need a paying-in slip from HMRC to pay at a bank or building society.

3 working days

5 working days

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What are Self Assessment Tax Returns?

A Self Assessment (or Self Assessment tax return) is a form that business owners are required to submit to HMRC every year. It details how much you've earned and your sources of income, which enables HMRC to work out the Income Tax and National Insurance you need to pay.

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How do I claim entrepreneurs relief?

You can claim Entrepreneurs' Relief on your annual Self Assessment tax return, under the 'Capital Gains Summary' section.

It is also possible to claim the relief on the sale of other assets which are not shares. The rules on this are different and it is best to discuss your individual case with a qualified accountant.

Read Full GuideRead Full GuideCalculate Now

Download Now:

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