Self assessment

[Welshbeef]

Ok here goes filling out my tax return online. In the tax year I worked for part of the year paye then left set up a company but between setting the company up and end of the tax year I tool no pay only one big dividend - I paid myself min wage after in this tax year.

Anyway on the filing is this simply the dividend which needs filling in or self employed? I'm just about to pay my corporation tax so when I looked at the self employed section it was asking for p&l data which in my view is not relevant.

Added to this inland revenue are not answering my calls hence me posting here as I font want a late filing or am incorrect filing

[UpTheIron]

You are an employee of a Ltd company, of which you are also a director and shareholder. You are NOT self employed.

Hopefully that helps!

Have you got an accountant?

Edited by UpTheIron on Friday 15th January 22:36

[Welshbeef]

Thanks for that will start it in the morning hopefully get it all completed tomorrow then a chance to review it then submit

With forign income which has had forign tax deducted at source and I have the statement from the rental company is this sufficient for double taxation relief?

Also if I owe >£7k in tax will they give me a negative tax code for next year for me to pay it or due to it's size a one off payment on account?

[UpTheIron]

No idea on the foreign income, but if you owe £7k for the tax year ending April 2009, you will need to pay it on or before 31st Jan 2010 to avoid interest / penalties.

[Eric Mc]

Welshbeef said:

Ok here goes filling out my tax return online. In the tax year I worked for part of the year paye then left set up a company but between setting the company up and end of the tax year I tool no pay only one big dividend - I paid myself min wage after in this tax year.

Anyway on the filing is this simply the dividend which needs filling in or self employed? I'm just about to pay my corporation tax so when I looked at the self employed section it was asking for p&l data which in my view is not relevant.

Added to this inland revenue are not answering my calls hence me posting here as I font want a late filing or am incorrect filing

You were never Self Employed so that part of the Self Assessment tax return is totally irrelevant.

You need to complete the dividend section as this was your personal income from your company. Don't forget, you are assessed for tax using the GROSS value of the dividend. Therefore, if you paid yourself a cash in hand dividend of (say) £50,000, the amount you are taxed on is the Grossed Up value of that dividend, which comes to £55,556.

However, you will only pay to HMRC that part of the dividend which falls into the Higher Rate Tax bracket.

[Welshbeef]

Eric the 11.1% for 55,556 over 50,000 can you clarify what that is for?

Red wine head this morning and just opened up the laptop to get this SA completed before any of the European rugby cup games this afternoon

[Eric Mc]

When a dividend is paid out by a company, it is "deemed" to have been paid Net of Tax. This tax on dividends is set at 10% of the Gross Value of the dividend. So, if your company paid out a dividend to you of £50,000, that is "deemed" to have already suffered some Income Tax. The tax involved would be £5,555.56. This means the dividend should look like this

Gross Dividend - £55.555.56
Tax Credit (at 10%) £5,555.56
Net Dividend - £50,000.00

The figure used when working out your total taxable income for the year is the GROSS DIVIDEND of £55,555.56.

I don't use HMRC's on-line filing system as I have my own proprietorial version specially designed for accountants. Therefore, I don't know whether the HMRC online screens ask the tax payer to enter the Net Dividend amount or the Gross Dividend amount. My system asks me to enter the Net amount and does the necessary Grossing Up calculations.

If you (or your accountant) have completed all the necessary dividend paperwork, you should have a dividend voucher (or a batch of dividend vouchers) showing the dividend amounts you received in the year, the date each dividend was paid and the 10% Tax Credit on each dividend and you should use these when compiling the data for the tax return.