Another tax return question

**JB3000** · 3 January 2016, 16:19

Originally posted by GoodBytes View Post

As explained before, I ran a limited company for less than a year. In 2013-14 I paid myself a salary for 6 months. The company ceased trading in July 2014, and was dissolved a few months after. I paid myself dividends from the remaining funds (less than the salary paid) just before the company was dissolved. The accountant I used said that for the 2014-2015 tax year I was not self employed, and I was not employed by my company (no salary), and that I should record when I resigned as the Managing Director.

So my questions:

Is the MD an employee? If so, I should have resigned at the end of the 2013-14 tax year.
If the MD resigns, who is subsequently responsible for the company, and paying the dividends? Presumably the sole shareholder, which was me.

Simple questions, but I couldn't find the answers.

A MD is not necessarily an employee, e.g. you can be an MD but not an employee on payroll.

If you resign as the MD with Companies House (i.e. not just P45 from payroll) the next director would be responsible. A company must have at least one director (who is a person) with Companies House.

**Contreras** · 3 January 2016, 16:21

When did you cease to be a Director, as in 'Officer' of the company and notified by filing to Companies House?

It's not strictly employment, but you must declare directorship on the SAR, either by completing the employment section, or if there's no salary or expenses then say so in the additional details box.

No, the shareholders cannot declare and pay themselves a dividend, AFAIK.

Who is responsible (and authorised) for paying a dividend if the company has no directors? - Pass.

**northernladuk** · 3 January 2016, 16:23

Originally posted by Contreras View Post

Who is responsible (and authorised) for paying a dividend if the company has no directors? - Pass.

There would be no authorized signatory for the bank to accept let alone no one to attend the meeting to agree it so it would be impossible no?

**GoodBytes** · 3 January 2016, 19:17

Thanks all, very helpful. I did not notify CH of my ceasing to be the MD. So I was the MD until the company was dissolved.

And as I understand it I was the sole shareholder, an employee in 2013-2014, and not an employee in 2014-15.

Can someone be the MD, not as an employee, but separately be an employee for a period i.e. the posts/duties are considered separate?

**ASB** · 3 January 2016, 22:57

You are overcomplicating it. From a view of your satr you need to fill in tge employment pages. Covers both employees and office holders.

**GoodBytes** · 4 January 2016, 07:30

Originally posted by ASB View Post

You are overcomplicating it. From a view of your satr you need to fill in tge employment pages. Covers both employees and office holders.

My accountant informed me I only needed to add my permanent employment which started in May 2014, as I received no salary from my company in 2014-2015, the company closing down.

**SueEllen** · 4 January 2016, 07:38

Originally posted by GoodBytes View Post

My accountant informed me I only needed to add my permanent employment which started in May 2014, as I received no salary from my company in 2014-2015, the company closing down.

If your accountant is giving you the answers then there is no need to ask posters on this forum questions.

**ASB** · 4 January 2016, 08:31

Originally posted by GoodBytes View Post

My accountant informed me I only needed to add my permanent employment which started in May 2014, as I received no salary from my company in 2014-2015, the company closing down.

read the notes paying particular attention to the first paragraph and what it says about box 6 and how that fits in with your position.

The notes do explicitly state you do not need to put a form in for directorships that are unpaid (or other offices). However they are not explicit for employments.

Your accountant will be much more aware of your overall position but putting the form in with nil entries if appropriate is fine. You probably were not an emplyee whilst you were a director (unless you had a contract of employment) though you probably were after ceasing to be a director (if you did anything for the company).

**Contreras** · 4 January 2016, 08:33

Originally posted by GoodBytes View Post

My accountant informed me I only needed to add my permanent employment which started in May 2014, as I received no salary from my company in 2014-2015, the company closing down.

This is partially correct - please see again my reply above.

However in your situation, assuming the company still has an Employer Reference, I would just fill in the employment page with nil amounts. As per your other thread, sometime it's easier just to work with the system, if the outcome is the same.

Have you read the separate SAR guidance notes (SA150)? If not then you really ought to. The question is answered right there in Section 1.

Another tax return question