Tax return help

seajaxx

Hi,
My first post, as a friend referred me to this site and thought it might help me. I've looked around though and can't find an answer to my question, so perhaps someone can help me.
I'm filling out a self assessment form for the first time. I started my own limited company last year and my husband and I are directors. Throughout the year I've taken £110 a week out of the company for around 40 weeks of the year. (Once the business was able to stand me doing that)
I'm now confused filling in the form as it's asking if I held directorships and when I select yes, it asks for my employers name. Am I employed as a director by default, and if so, how should I treat the "self employed" part of the form. Should I have even registered as self employed in the first place? I always invoiced and receipted myself for my work, and also drew some income by doing a couple of websites for local businesses (again, believing myself to be self employed.) Can someone help please?

WeBeBroke

seajaxx wrote: »

Hi,
My first post, as a friend referred me to this site and thought it might help me. I've looked around though and can't find an answer to my question, so perhaps someone can help me.
I'm filling out a self assessment form for the first time. I started my own limited company last year and my husband and I are directors. Throughout the year I've taken £110 a week out of the company for around 40 weeks of the year. (Once the business was able to stand me doing that)
I'm now confused filling in the form as it's asking if I held directorships and when I select yes, it asks for my employers name. Am I employed as a director by default, and if so, how should I treat the "self employed" part of the form. Should I have even registered as self employed in the first place? I always invoiced and receipted myself for my work, and also drew some income by doing a couple of websites for local businesses (again, believing myself to be self employed.) Can someone help please?

Don't know if it's too late to answer this but you're not treated as Self-Employed if you're working for a limited company. The Ltd Company is a separate entity and you're treated as an Employee. However, as a director you will have to fill out self-assessment forms.
If you're taking out money you may need to set up a Payroll system of some kind - especially as in the future you may go over the annual tax-free allowance threshold. Otherwise, the money you take out will be liable to corporation tax or treated as a director's loan which could end up making you worse off.
Best practices are you should be paying a mix of salary and dividend to make best use of the tax efficiencies available.
You need to get yourself an accountant to give you the best advice on taking money out of the company as you do seem a bit confused about the differences between self-employed and working for a Ltd Company. You don't want to end up with a needlessly large corporation tax bill and you will need an accountant to produce annual accounts 9 months after the end of your first year trading.

Best of luck,

WBB

ceeforcat

I note the date of the first post and wonder how he/she completed the SA form. Until we find out there is little to be done other than, of course, to deregister as self-employed and stop paying Class2!