self assessment payment

[newguy007]

I started a limited company. I need to make self assessment tax payment. Is this personal or business expense? Should I use my own money or business money to pay the tax? I got confused because when I go to make the payment, it asks 'Debit or business credit card '.

 

[Mr D]

This is self assessment of your own financial income?

 

[newguy007]

I took dividends and salary from my limited company.

 

[faradaykeynes]

Its not business expense

 

[newguy007]

That's what I thought. Thanks for confirming it.

 

[SteveHa]

There's nothing to stop the company paying it on your behalf, but then that would be taxable income in your hands in the current year. You would effectively pay tax on tax.

There is a way to actually make it a business expense, but this involves a PAYE Settlement Agreement, and quite a hefty grossing up of the tax payable to further account for tax and NI on the payment. i.e. It's not a particularly tax efficient strategy.