Heavily confused while filing my Self Assessment...please help

smoothieee

Hello fellow MSE's,
I sat to file my self assessment thinking it would be simple and fast and am now completely lost and utterly confused. I am looking for some expert guidance.
I have a primary job in the public sector and this is my main salaried employment so tax and NI are taken care off by payroll.
However, I am also the Director of my Limited Company. I am the only employee in my limited company and I do not withdraw salary. However, the reason I am doing self at the moment is because I want to Withdraw dividends of 9000 for 2019/2020.
While filing for Self Assessment it asks me the following; 

• 1. How many employments or directorships did you have?

Although, I have my PAYE job but am not sure if I should be declaring it on Self Assessment, which means my answer should be 2, is that correct  ??? 

• Enter the amount Earned from your P45 ( But I do not have a P45 form my LTD so am assuming its asking form my income from PAYE) being £16,739.00 ???

However, I have read and knew for sure that I would get :

•   2000 tax free dividends but  when the computation came up, it appears I have been overcharged and have to pay Tax of £1,297.20.

By my calculation, for dividends of 9000, I would only have to pay tax on 7000 which would come up to £ 525  ?? 

•                                     Please see my screenshots. No Personal info, just computations.
  

Dazed_and_C0nfused

Where have you got the £16,739 (pay from normal job) and £2,670 (tax from normal job) figures from?

The tax figure is very high for that pay, have you omitted something like a company car or other benefit (from your normal job)?

NB.  You have to include all taxable income on the form so you do include your normal job, the fact some tax was paid during the year is irrelevant.

comeandgo

You don't have to pay tax of £1,297.20.  This is a repayment to you.  Do you have your  P60 or last payslip for the tax year as your figures for tax against your gross pay are way out.  Are you receiving any pensions that you have omitted or were there errors of underpaid tax in the previous years?   Is the tax figure you have entered only income tax or have you included National Insurance contributions too?

pjread

^^ that's the first thing to check, final payslip or p60. 

I think we're all guessing without knowing the (real) numbers but possibilities might be

* You've mistyped a number for your PAYE income or income tax paid, or missed another source of income (pension/taxable benefits)

* Some other benefit received but not declared (car?)

* You've declared 'tax paid' as 'tax + NI'

* Your tax was high last year due to a previous year underpayment which you haven't declared on your return?

smoothieee

@Dazed_and_C0nfused  said:

Where have you got the £16,739 (pay from normal job) and £2,670 (tax from normal job) figures from?

The tax figure is very high for that pay, have you omitted something like a company car or other benefit (from your normal job)?

NB.  You have to include all taxable income on the form so you do include your normal job, the fact some tax was paid during the year is irrelevant.

@Dazed_and_C0nfused I pulled the Figures from my P60, there is no car or other benefits.
£16,739 (pay from normal job)
 £2,670 (tax from normal job)
But, I did not Include National Insurance, do I add it  ??

smoothieee

comeandgo said:

You don't have to pay tax of £1,297.20.  This is a repayment to you.  Do you have your  P60 or last payslip for the tax year as your figures for tax against your gross pay are way out.  Are you receiving any pensions that you have omitted or were there errors of underpaid tax in the previous years?   Is the tax figure you have entered only income tax or have you included National Insurance contributions too?

I included the following from My P60

• £16,739 (pay from normal job)
•  £2,670 (tax from normal job)

But, it has just occurred to me  did not Include National Insurance, I will add it now and report back.

Jeremy535897

No you don't add NIC. If you had no other income, you would expect to pay tax of £847.80 or thereabouts on your earnings. It may be your code has an estimate for dividend income, but it would have to be more than £9,000 gross. Your tax bill is £847.80 plus £525.00 on the dividends, totalling £1,372.80. You had tax deducted from your earnings of £2,670.00, so you have overpaid and are due a refund of £2,670.00 - £1,372.80 = £1,297.20, as it says.

smoothieee

Thank Guys, helpful feedback from everyone and I would be faster and smarter next time, call forth and back with with payroll and further checking on P60 confirms that a refund is due a refund, just as calculated by @Jeremy535897  .

One final thought before I submit it, do I add my LTD as the second employer because, going back to
1. How many employments or directorships did you have? 
To this question, I initially answered 1 and and at the dividends section, I entered 9000K
Have noticed if I entered a second employer, it also prompt me to enter salary or would it be okay to enter salary as Zero or, I should skip the whole second employer part as I have no salary to declare from my LTD?
What are your thoughts?

unholyangel

smoothieee said:

Thank Guys, helpful feedback from everyone and I would be faster and smarter next time, call forth and back with with payroll and further checking on P60 confirms that a refund is due a refund, just as calculated by @Jeremy535897  .

One final thought before I submit it, do I add my LTD as the second employer because, going back to
1. How many employments or directorships did you have? 
To this question, I initially answered 1 and and at the dividends section, I entered 9000K
Have noticed if I entered a second employer, it also prompt me to enter salary or would it be okay to enter salary as Zero or, I should skip the whole second employer part as I have no salary to declare from my LTD?
What are your thoughts?

One thing to be careful of, were there any deductions to your tax code? What do HMRC have for your tax code that year? If there was an underpayment collected through your tax code and you didn't include it on your return, that would result in the situation you describe. 

So could your employer using the wrong code (which may mean the overpayment is correct) but best to be sure lest it get picked up on. 

Jeremy535897

smoothieee said:

Thank Guys, helpful feedback from everyone and I would be faster and smarter next time, call forth and back with with payroll and further checking on P60 confirms that a refund is due a refund, just as calculated by @Jeremy535897  .

One final thought before I submit it, do I add my LTD as the second employer because, going back to
1. How many employments or directorships did you have? 
To this question, I initially answered 1 and and at the dividends section, I entered 9000K
Have noticed if I entered a second employer, it also prompt me to enter salary or would it be okay to enter salary as Zero or, I should skip the whole second employer part as I have no salary to declare from my LTD?
What are your thoughts?

Notes to SA102 say:
"Fill in the ‘Employment’ page if you:
• work for an employer who deducts tax through PAYE
• received income as a company director
• hold an office such as a chairperson, secretary or treasurer and received an income for that work
• work for one person through another company or partnership
• received foreign income from a job, directorship or office
• had, at 5 April 2019, an outstanding balance on a disguised remuneration loan from an employer or ex-employer
You’ll need to fill in a separate ‘Employment’ page for each job, directorship or office you held in the year and for each employment where a disguised remuneration loan charge applies, even if the employment ceased in an earlier year."

It doesn't sound like you met any of the criteria in respect of your own company, so you don't need to complete a SA102 in respect of it. If you usually complete a SA102 for it and don't need to, you could explain why in the notes to the SA100 (name of company, PAYE reference, fact that pay was zero). If nothing else, it keeps the details handy.

[Deleted User]

Quite a few years back the requirement for directors of companies who received no remuneration was removed. Can’t be more exact but it is at least fifteen.