Late tax return - advice please

Jackg1996

Hi everyone,
I have just received a penalty for a late tax return that I am going to appeal, but for now I need to complete my tax return for 2019/2020 ASAP, I registered self employed when I started my own private limited company and paid an accountant to submit my corporation tax, I then dissolved the company (which my accountant dealt with).  I assumed that at this time I was not registered self employed anymore and was clearly wrong.  I believe my accountant paid my self employment tax when I closed my company, would I be right in thinking that this would have been a partial tax return and that I need to deal with any tax due after this date?

Your help is appreciated thank you

[Deleted User]

You need to know that, as a director of a Ltd Company, you are NOT self-employed. Moreover there would have been no self-employment tax. Bring a director of a limited company does not, on its own, necessitate completion of a tax return.

However, you registered as self- employed, when you weren’t and this has clearly caused the problem. By informing HMRC that you were, a notice to file must have been issued and HMRC expect a return. 

Complete it now and, under no circumstances, complete the self-employed section. Complete the employment pages (you were an employee of a company). Better still, get your accountant to do it.

As an aside, how did you treat any monies that you withdrew from the company?

Jackg1996

Thank you for clarity, as the company was dissolved, corporation tax to the date of closure was paid early as advised by my accountant, this was dealt with by myself sending a payment via BACS to HMRC.

[Deleted User]

Jackg1996 said:

Thank you for clarity, as the company was dissolved, corporation tax to the date of closure was paid early as advised by my accountant, this was dealt with by myself sending a payment via BACS to HMRC.

Yes - but my point remains. You registered as self-employed and, accordingly, a tax return is required and a notice to file would have been issued. It could well be that there is grounds for appeal on the basis that you registered erroneously. If you received any income from the company it could only have been in the form of salary under PAYE or dividends and, perhaps, the return will be easily completed. Either way - don’t let it lie as penalties will increase.

Pennywise

Jackg1996 said:

Thank you for clarity, as the company was dissolved, corporation tax to the date of closure was paid early as advised by my accountant, this was dealt with by myself sending a payment via BACS to HMRC.

If you paid yourself dividends, then that would trigger the need for a personal SA tax return and payment of personal tax on those dividends.  You appear to have misunderstood the fundamental legal difference between you, the person, and your limited company - two completely different things.  The company is liable to corporation tax on it's profits.  You, personally, are liable to personal tax on the monies you drew out of the company via your personal self assessment tax return.

csgohan4

how much dividends did you give yourself, Anything above 2k must be declared generally, unless your personal allowance covers the amount

https://www.gov.uk/tax-on-dividends

[Deleted User]

csgohan4 said:

how much dividends did you give yourself, Anything above 2k must be declared generally, unless your personal allowance covers the amount

https://www.gov.uk/tax-on-dividends

A director who receives dividends constitutes a requirement to complete a tax return.