HMRC online services site vs WebFiling online. Personal tax account vs Business tax account. What's the difference?

[DQ24]

I'm both employed and self-employed and I use the HMRC online services site. In addition to this, I have a limited company set up for another project I'm involved with.

For employment and self-employed activities I use the HMRC online services site. For the limited company, everything seems to go through the WebFiling online site. I have a few questions if anyone can answer these.....

1) What is the difference between the HMRC online services site vs the WebFiling service online? Are they both part of HMRC? Is it that HMRC online services is only for tax related to employment and being self-employed (as a sole trader, not limited company) i.e income tax, whereas the WebFiling is only for limited companies and corporation tax?

2) On the HMRC online services site there are 'Personal tax account' and a 'Business tax account' sections. I use the 'Personal tax account' to check my taxes from my employment. I also set up a Self Assessment Unique Taxpayer Reference (UTR) for my self-employment activities. However for some reason this UTR and the option to submit and view your 'self assessment' is listed under 'Personal tax account' as well as 'Business tax account section'. I wondered why they're listed under both - presumably the 'Personal tax account' is really for tax to do with employment and 'Business tax account' is to do with self-employment (sole trader only, not for limited companies).

3) If you're both employed and self-employed, does HMRC online services calculate your combined income from employment and self-employment, then tell you how much tax from self-employment you have to pay? I'm not sure how this works or how it's calculated. I currently make about £20k a year before tax on my employment and only about £30k a year from self-employment. So is the total from employment and self-employment added up (to around £23k in my case) then what tax I'm due is calculated? Or do I only pay tax from self employment on the £3k?

4) Finally, does HMRC share the tax and income info between HMRC services online and WebFiling? So, for example, if I make £23k that's being taxed on via HMRC online services, but the limited company via WebFiling makes, say, another £20k turnover, then that adds up to £43k in total but only £23k is being taxed via HMRC online services. Are these 2 sites linked so they know how much money is being made via each one?

Thanks.

 

[DWS]

1. Web filing is part of Companies House and is used to submit the Company accounts, confirmation statement and other information needed by CH, HMRC is where you need to submit the Companies CT600 tax return as well as your personal self assessment.
2. Pretty much as you say, the business account is for your self employment.
3. The employment income and profits from SE are added together to give your tax liability minus any tax paid through your employment.
4. The Ltd Co has nothing to do with your employment or self employment, the Company submits accounts and a tax return and is taxed on its profits, you personally will only be liable for tax if you extract money from the Company either by PAYE or dividends, both of these would then be included on your self assessment.

 

[Lisa Thomas]

If you don't use an accountant I recommend you do. Mistakes can be costly. I can recommend one if you don't find one on here.