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Tax return after limited company had been closed

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    Tax return after limited company had been closed

    Hello!
    In 2019/2020 tax return when I was contracting via my limited company, I received two personal tax payments to pay: for 31st January 2021 and for 31st July 2021.
    In June 2020 I stopped contracting and my company was struck off, and since then I started working as an employee in another company.
    Do I need to make that second payment on 31st July 2021, and do I need to file the tax return for 2020/2021 now?
    (It looks to me that I am overpaying the personal tax here, as I stopped contracting in June 2020).
    Many thanks in advance!

    #2
    Originally posted by leo123 View Post
    Hello!
    In 2019/2020 tax return when I was contracting via my limited company, I received two personal tax payments to pay: for 31st January 2021 and for 31st July 2021.
    In June 2020 I stopped contracting and my company was struck off, and since then I started working as an employee in another company.
    Do I need to make that second payment on 31st July 2021, and do I need to file the tax return for 2020/2021 now?
    (It looks to me that I am overpaying the personal tax here, as I stopped contracting in June 2020).
    Many thanks in advance!
    What does your accountant say? He presumably told you as you closed your company?

    Failing that. If the tax due is payment on account (quite likely) then you need to talk to HMRC about your situation as POA is tax due for next year.
    If it's not POA (unlikely) then you owe it no matter what your current situation.

    And you can also ask HMRC to be removed from SATR. But to be honest it's not a big deal, and once you're on PAYE they'll likely write to you to remove you in any case (at least they used to do that).
    See You Next Tuesday

    Comment


      #3
      Originally posted by Lance View Post

      What does your accountant say? He presumably told you as you closed your company?

      Failing that. If the tax due is payment on account (quite likely) then you need to talk to HMRC about your situation as POA is tax due for next year.
      If it's not POA (unlikely) then you owe it no matter what your current situation.
      I'd second a call to HMRC. The POA is assumed to be required from your last years returns so if your situation has changed as much as it has then you really need to inform HMRC of your current situation. They can do some calcs to try and balance your old situation with what is going to happen over the upcoming year and alter your tax code to suit (or require a single payment to catch you up depending on the numbers).
      'CUK forum personality of 2011 - Winner - Yes really!!!!

      Comment


        #4
        Originally posted by Lance View Post
        Failing that. If the tax due is payment on account (quite likely) then you need to talk to HMRC about your situation as POA is tax due for next year.
        If it's not POA (unlikely) then you owe it no matter what your current situation.

        Not it isn't, it's tax due (estimated) for the current tax year (technically the previous tax year in the case of the July payment). Payments on account made in Jan/July 2021 are for the 2020/2021 tax year.

        If OP received any personal income from their business in the 2020/21 tax year (and as they closed it in Jun 2020 they may have done) - then they may have additional tax due on top of their PAYE earnings although its unlikely to be as high as what was estimated based on their previous year.

        OP - as the 2020/21 tax year has ended you should be able to work out what your actual tax liability should be for that year based on any dividends you received from YourCo plus your P60 from your main job. Deduct from this any tax paid via PAYE and whatever your January POA was and if you've already paid enough you can apply to HMRC to reduce your July POA to £nil and you'll be due a refund for any overpayment of tax when you file your tax return.

        Probably the simplest thing to do is submit your tax return for 20/21 now and your July POA should be updated automatically to account for your actual tax bill rather than your estimated bill.

        Comment


          #5
          +1 what TCP said. In addition to that, if all you have now is PAYE income, include a note in the Additional Notes box on your tax return to state the fact that all your income is now taxed through PAYE as an employee and you have no other taxable income. HMRC should hopefully pick that up and write to you to tell you that you don't have to fill out a tax return anymore unless your circumstances change.

          Comment


            #6
            Many thanks to everyone, will submit my tax return now myself.
            (I am not hiring my accountants anymore, so hope I can do this myself)

            Comment

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