PAYE TAX and Dividend payout frequency

[Johncontractor]

Hello All,

Your views on below 2 points will be great.

I got a call from HMRC to enquire that I have not paid my PAYE tax. I have an accountant who does the payslips and taxes etc for me. There is no outstanding tax since I opened up my ltd company 3 months ago, hence no PAYE tax. Moreover since the contributions to HMRC do not exceed £1500 per month, I as a ltd company can choose to pay tax payments quarterly.

My question is:

1. Is it normal to receive such calls from HMRC? The guy on the phone told me that he’ll update his records. I also have sent a signed payslip P30B to them via post saying NIL due, however no acknowledgment. Do I need to do anything else?

And on the earnings note:

2. I am planning to take out some dividend amount after 5 months of ltd company operation. Have talked to accountant and he has advised me, it’s fine. When can dividends be withdrawn comfortably without any hiccups from HMRC, I mean what’s the standard practice?

[Sockpuppet]

It was probably just to make sure you knew you had to file as your a new company. Sometimes when I miss the 3 month deadline I get a snotty letter in the post.

Better way to do nil payments now is to: HM Revenue & Customs: No PAYE/NICs Payment Due do it online.

You can take dividends whenever there is profit in the company. You could take it at 3 months as long as you can prove the company is making a profit.

[TykeMerc]

1. Not unusual, I had a similar reminder a month or so ago.

2. Some people take regular dividends, others take them irregularly. There is a school of thought that taking a monthly dividend looks too much like a salary so might prompt HMRC taking a nosey. So long as dividends are drawn from profits literally speaking you can take them whenever you feel is right.

[Johncontractor]

That's comforting... thanks very much for your replies.. Hats off to this thread community..

[ASB]

1. Not unusual, I had a similar reminder a month or so ago.

2. Some people take regular dividends, others take them irregularly. There is a school of thought that taking a monthly dividend looks too much like a salary so might prompt HMRC taking a nosey. So long as dividends are drawn from profits literally speaking you can take them whenever you feel is right.

I don't see how taking monthly divis would prompt them into taking a nosey. They do not know when you are taking dividends until they are already taking a nosey.

[TykeMerc]

I don't see how taking monthly divis would prompt them into taking a nosey. They do not know when you are taking dividends until they are already taking a nosey.

I don't subscribe to the view either, but I know some do. I believe the argument is if they're already having a nosey then it raises more flags.

As it happens I take dividends at fairly random intervals, but that suits me, it might not suit others.