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Dividend Tax/Payments on account/company not trading this year

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    Dividend Tax/Payments on account/company not trading this year

    Due to dividend payments and the whole dividend tax debacle, it seems I'm down for advance payments on account from Jan 2018.

    BUT, since I'm now working on Inside IR35 PS contract I'm now operating solely via an umbrella (this is since April). In fact, closed limited down at end of August because its unlikely I'll be needing it for a while.

    So I'd rather not pay advance tax on dividends I know I'm not going to get next year. After all, I'll pay in advance, then do tax return next year and they'll give it all back. Seems a bit silly. Is there any way to get out of it?

    Not that I'm expecting HMRC to do things sensibly.
    Rhyddid i lofnod psychocandy!!!!

    #2
    Originally posted by psychocandy View Post
    Due to dividend payments and the whole dividend tax debacle, it seems I'm down for advance payments on account from Jan 2018.

    BUT, since I'm now working on Inside IR35 PS contract I'm now operating solely via an umbrella (this is since April). In fact, closed limited down at end of August because its unlikely I'll be needing it for a while.

    So I'd rather not pay advance tax on dividends I know I'm not going to get next year. After all, I'll pay in advance, then do tax return next year and they'll give it all back. Seems a bit silly. Is there any way to get out of it?

    Not that I'm expecting HMRC to do things sensibly.
    ask your accountant

    and he'll tell you that you can reduce your POA when you do the SA in January.

    You could also read the thread on here this week that covers the exact same topic.
    http://forums.contractoruk.com/accou...dividends.html
    Or the one last month...
    Last edited by Lance; 15 September 2017, 13:32.
    See You Next Tuesday

    Comment


      #3
      Yes, you can reduce/eliminate payments on account, but you'll pay interest if you're wrong. You can login to your HMRC account and request this online or submit an SA303 or notify a reduced payment with your SA100. Or you can advance them with some of your signing on stash.

      Comment


        #4
        Originally posted by psychocandy View Post

        Not that I'm expecting HMRC to do things sensibly.
        Bit rich coming from you isn't it?
        'CUK forum personality of 2011 - Winner - Yes really!!!!

        Comment


          #5
          Firstly, payments on account aren't payments in advance. The first POA is due 10 months in to the tax year in which it falls with the remaining POA being due after that year has finished (unhelpful pedantic bit done).

          You can absolutely reduce your payments on account if your declarable or untaxed income will be lower in the current tax year than in the year currently being reported on.

          You can either do this on the SA form or through the gateway but will need to make sure that you know what any liability will look like for the current year as you should not reduce payments on account to a level below the tax which eventually becomes payable.

          Comment


            #6
            Well, strictly speaking I dont have an accountant since I shut the company down at end of august.

            Good to know I can not pay it.
            Rhyddid i lofnod psychocandy!!!!

            Comment


              #7
              Originally posted by northernladuk View Post
              Bit rich coming from you isn't it?
              And yet another trolling example.

              The OP needs to talk to their accountant. Id expect them to be on the ball regarding such. I know mine are.

              Comment


                #8
                Originally posted by washed up contractor View Post
                And yet another trolling example.

                The OP needs to talk to their accountant. Id expect them to be on the ball regarding such. I know mine are.
                Tip - Don't get involved in the PC and NLUK splat except to tell them both to behave.
                "You’re just a bad memory who doesn’t know when to go away" JR

                Comment


                  #9
                  Originally posted by SueEllen View Post
                  Tip - Don't get involved in the PC and NLUK splat except to tell them both to get a room.
                  FTFY

                  Comment


                    #10
                    Originally posted by washed up contractor View Post
                    And yet another trolling example.

                    The OP needs to talk to their accountant. Id expect them to be on the ball regarding such. I know mine are.
                    Well yes you are kind of right but PC could also be accused of similar. His inability to do even the simplist bit of research before asking a question on here is legendary. He's well aware of the search methods and that anything basic he struggles with will have been asked plenty of times. Using the google search on the forums for 'reduction payment on account' brings back 179 threads all asking the same.

                    https://www.google.co.uk/search?q=re...hrome&ie=UTF-8

                    Putting so little effort in and so many lazy posting is also called out explicitly in the list of things not to do in the prof forums so he's kinda just as bad.

                    This post...
                    http://forums.contractoruk.com/welco...e-newbies.html

                    states..

                    So basically, we will help where we can but we dislike lazy posting. If you find the above steps too much of a hassle, you deserve all you get.
                    'CUK forum personality of 2011 - Winner - Yes really!!!!

                    Comment

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