Self Employed or not! Heavily confused while filing my Self Assessment...please help

chrismac1

To hsirk, dividends come from profits after corporation tax of the company. In the hands of shareholders, they are deemed to have basic rate tax already paid. So - despite your best efforts to mess it up - it looks like you got to the right answer, as only if your total gross income exceeds 42,475 (higher rate tax starting point) would you have a tax bill on the divis.

To raphael, the easiest option for DIY is 45 pence per mile for the first 10,000 business miles and 25 pence thereafter. Unless you have a very expensive car, a gas guzzler or one with heavy repair bills likely, this option should not leave you worse off than the "capital allowances" option and has the merit of being much simpler.

cotswoldaccountant

hsirk wrote: »

Once in the main form under Dividends and in Part 4 - Any other income is asks for this;

4. Fill in your return

Any other information (Page 1 of 2)


* indicates required information
If you provided your services through a service company (a company which provides your personal services to third parties), enter the total of the dividends (including the tax credit) and salary (before tax was taken off) you withdrew from the company in the tax year: £

Does this return contain provisional or estimated figures? (If yes, please provide details on the next page )*

In the main dividends section, you enter net dividends (i.e. the actual amount you withdrew from the company, which is net of an assumed tax credit).

In Part 4, as long as you are indeed a service company (which it sounds like you are, as you provide your services personally to third parties), then the dividend figure is entered again, but this time gross of (including) the tax credit. You can find the net and gross dividend figures on your dividend tax vouchers. You would add on any salary received from the company, but you say you didn't receive a salary, so you will only enter the gross dividend figure.

I'd have thought the first port of call would be your accountant with these queries. I have many limited company clients such as yourself, and I would be concerned if I knew that I was providing services to their limited company but that my client was posting questions on an internet forum with respect to their personal self assessment tax return. To an accountant, these are simple queries but ones which we know clients do not always understand. That is why we are here!

John_Pierpoint

http://citywire.co.uk/money/tax-man-cracks-down-on-ir35-personal-service-companies/a589060/2

jimmo

Cook_County wrote: »

As someone who pays for the public sector, I would be seriously concerned if a contract of employment permitted any employee to have a separate business at all.

Then you need to be very seriously concerned.

In what was the Inland Revenue we were absolutely prohibited from doing anything even remotely connected with Income Tax or accountancy. That applied to both paid and voluntary work and we had to apply for written permission to work on licensed or betting premises. Apart from that it was carte blanche.

If you believe that is wrong surely the clean up has to start with our political masters.