End of year advice for ltd co needed!!!

**ObieNoGimmicks** · 19 January 2005, 13:36

Re: One born every....

WTF's with the one born every!

...im looking for advice on this, not friggin abuse. I thought a lot of this slagging off / putting peoples backs up had fallen away from this board!

Dont you think i asked all these questions at the begining?

THANX for the help everyone, awaiting a reply from my accountant

**planetit** · 19 January 2005, 13:37

Re: One born every....

i was permanent up until january 04, i then started contracting at the end of jan 04 ...thus my year end coming up now

Sounds like you will have to do a self assessment for the tax year April 03 to April 04. This is due in by the end of this month. Try to register to do it on line as the calculations are all done for you (but you may be cutting it fine if they have to post access coded to you). It’s not as daunting as it first seems. Depending how much you earned from your salary to Jan04 and from your company in Feb / March 04, you may not have much if anything to pay.

As others have said, this is not really a company issue, hence your accountant not telling you about this.

Ignore the p1ss takers.

**planetit** · 19 January 2005, 13:55

What you’re saying is you have received a personal income of £49K. Basic rate tax should already have been paid on this (via PAYE or Corp tax on the company profit that lead to the dividend). However, if during a personal tax year (April to April) you have received more than your basic rate allowance (currently about £36K) you need to pay tax on the extra. Can’t remember the rate. This is done via your Self Assessment. Should become obvious when you complete the SA form.

**fiddleabout** · 19 January 2005, 13:57

> and the tax man might want a slice!
yep he will.

Broadly speaking if you keep all your personal income and divvis below the 40% band you pay no more on them but you'll have to pay extra on the difference between the 40% point and what you drew.

Make sure that you can't claim some expenses against it somehow - eg bought any computer kit etc.

Your accountant may only be paid to do your company tax - you are talking about a personal tax issue here.

**pickle** · 19 January 2005, 13:59

no sh^t

Of course he'll want a cut. After you have paid the 8k in corporation tax, then you will still owe the upper rate bit on 21k of the divi. So 21k * 25% = aout 5k you'll be due to pay on your self assesment. This will need to come out of your account (not the company) so I hope you havnt spunked it all on crap.

Im sure you can find a calucaltor on the web to get an acurate figure. More to the point, why dont you change accountant!?

**ObieNoGimmicks** · 19 January 2005, 14:06

Thanx for the reply.

I asked my accountant all these kinda questions at the start of the year, all i was told was to place aside 25% off al income and dont worry bout the rest!

I think this is going to be more of a lessons learned in my first year! ...more bloody tax to pay!!

btw do you still have to fill in a self assessment form if your through a ltd co
?

**pickle** · 19 January 2005, 14:12

self assessment

Yes, I belive as director of company you are obliged to fill one in. Whens your company year end exactly?

If you were contracting through your limited this time last year then you are due a return for 03/04. That return is due inabout 12 days. Otherwise you will get a nice fine. Though you will be shifting some of you dividend income into that year so it may mitigate some of the tax due.

I assume you have dividend vouchers and all the requisite paperwork for these divis you have pais? Hate to see the IR class them as salary, and hit you with NI as well......

**planetit** · 19 January 2005, 14:13

Re: no sh^t

Actually the amount he has to pay will depend in which personal tax years the income was received. Since his company year is just ending, you would have to assume that the income is split over at least 2 tax years.

Were you contracting during the year to April 2004? If so you need to submit a self assessment by the end of this month. If not, you have another year to do it (and get the money together).

**pickle** · 19 January 2005, 14:16

snap

that what i just said :b

End of year advice for ltd co needed!!!