Are Your Top Billers Aware of Their Personal Tax Obligations?

Exploring the personal tax obligations of top billers in recruitment businesses


Are you certain that your top billers know they may need to complete a personal tax return? Are you providing enough support to ensure they understand their tax obligations? If you’re scratching your head about these questions, it’s time to read on.

Who Needs to Complete a Self-Assessment Tax Return?

Let’s clear the air: not everyone needs to complete a self-assessment tax return. However, for your top billers in your recruitment business, it’s a different story. The criteria for needing to complete a tax return are quite straightforward:

  • You were self-employed as a ‘sole trader’ and earned more than £1,000 (before any tax relief).
  • You were a partner in a business partnership.
  • You had a total taxable income of more than £100,000.
  • You had to pay the High Income Child Benefit Charge.

Many top billers in recruitment businesses will have a total taxable income of over £100,000, thus making them liable for a self-assessment tax return.

The High Income Child Benefit Charge

The High Income Child Benefit Charge is another crucial aspect that your top billers need to consider if they have children. The rules are if you or your partner earn over £50,000 and either of you receives Child Benefit, you may have to pay the High Income Child Benefit Charge.

To determine if your income crosses the threshold, you’ll need to calculate your ‘adjusted net income.’ This is your total taxable income, before allowances but including interests from savings and dividends.

If both you and your partner’s adjusted net incomes are over £50,000, the person with the higher income is responsible for paying the tax charge.

Important Deadlines and Steps

  • Tell HMRC by 5 October: If you’re new to the self-assessment tax game, make sure you’re registered for Self-Assessment by the 5th of October. You can register using this link here.
  • Keep Records: Maintain records such as bank statements and receipts.
  • File Your Return: You can file your Self Assessment tax return online and pay any relevant taxes by the deadline, which is 31 January.

What’s Next?

So, what should you do next? Pass this information onto your top billers. They are key assets to your business; helping them understand their tax obligations is not just good ethics—it’s good business.

Let Us Help

Understanding tax can be a maze. At Recruitment Accountants, we’re here to guide you and your top billers through this labyrinth. From helping you register for Self Assessment to ensuring all your tax obligations are met, we’ve got you covered.

Don’t let tax season catch you off guard. Contact Recruitment Accountants today and ensure you and your top billers are well-prepared.

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