Panic - What do I put on Self Assesment form?

[splodge2001]

First post - here goes.

Was full time employed for Tax year 11/12 until Sep' 11 then made redundant through company insolvency, earned 38k gross from employer. Started trading through new company in Jan 12. Pocketed £5K from Jan 12 to April 12 but had not registered as an employer as I couldn't guarantee a fixed income. I'm the only director.

I need to fill a self assessment form but do not know what to do as I haven't registered as an employer. I've continued in 12/13 to pay myself here and there too. Things are very difficult as there was no redundancy payoff and I'm claiming income support when I'm not working. To be honest I had to take the money or I would have been repossessed. I still cannot guarantee myself any sort of wage but I need to sort out how to pay myself and what to enter on the '11/12 self assessment return form.


really appreciate any help as I can't afford an accountant!

 

[faradaykeynes]

you can show 5K on your tax return as dividends if you like. Of course your employment income will go on your tax return too

 

[Alan]

Well £43k and you can't afford a few hundred for an account, I'm sure the accountants, will have afield day with you.

Assuming you set a up a limited company, as a director you will always be asked to complete a tax form.

Also, you can't just pocket £5k, if you didn't pay it as a wage (PAYE) then it can only be a dividend, which you can only pay if a company makes a profit and thus owes corporation tax.

If you didn't set up as a limited company, but self employed, as you didn't register as self employed within 3 months, I think you already have failed to do what you have to do.

You need an accountant - what you spend on accountants they will probably save you on tax, or in your case fines & penalties that might be coming your way.

 

[splodge2001]

Can I? Sorry but I have never run a company before. Will I have to do anything extra if I say it's a dividend?

 

[splodge2001]

Well £43k and you can't afford a few hundred for an account, I'm sure the accountants, will have afield day with you.

Assuming you set a up a limited company, as a director you will always be asked to complete a tax form.

Also, you can't just pocket £5k, if you didn't pay it as a wage (PAYE) then it can only be a dividend, which you can only pay if a company makes a profit and thus owes corporation tax.

If you didn't set up as a limited company, but self employed, as you didn't register as self employed within 3 months, I think you already have failed to do what you have to do.

You need an accountant - what you spend on accountants they will probably save you on tax, or in your case fines & penalties that might be coming your way.

Unfortunately when my previous employer went bust I was left high and dry with two kids a mortgage of £2k per month and no redundancy pay to show for my 8 yrs, hence now I can't afford an accountant!

so to be clear I can't call it a wage as I haven't set up PAYE?

 

[faradaykeynes]

File your tax return online

 

[TKDVH]

You only think you cant afford one it looks to me like you can't afford not to have one. My accountant saves me far more than she costs me every year I know this because I know this because my last account turned out to be a lazy so and so. So when I moved to my current one she got me a nice rebate.

 

[Alan]

and no redundancy pay to show for my 8 yrs,

Did you not claim claim from the Department of Business Innovation Skills? I'm not an expert on redundancy in insolvency, but I think that might be about 8 weeks at £430 / week = £3,440 due.

 

[cheaper accountant]

When did you start your limited company? Have you considered preparing the accounts and corporation tax return and then submitting to Companies House and HMRC?

I know your self assessment is your immediate priori but from the dates you've given other tasks might need completing soon.

I would suggest you act quickly with your self assessment so you don't miss the 31 Jan deadline. Are you registered for self assessment with HMRC online?