How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask bigduckontax Your Own Question
bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3815
Experience:  FCCA FCMA CGMA ACIS
75394688
Type Your Tax Question Here...
bigduckontax is online now

URGENT - UK INCOME TAX - SELF ASSESSMENT , I need urgent

Customer Question

URGENT - UK INCOME TAX - SELF ASSESSMENT
Hi, I need urgent advice please because I don't know what I'm doing. I created a limited company for my temping work and listed myself as its director. Before I could file my company tax which was late, companies house dissolved my company. Since then I've worked as PAYEE.
Now HMRC sends me a self assessment letter for me to declare my income whilst I was the company's director.
The problem is I don't know what to declare! I have asked my former accountant for help and he said he couldn't as he can't enter my figures into any of his system in order to work out what I should declare for tax as the company has been dissolved.
I got sent a P45 from the limited company and a very small amount was listed on there.
I've downloaded the self assessment forms and the guidance booklet but they're not much help because it is all based on if you know what to declare and I don't.
Please help ASAP as I'm being chased by HMRC and they scare me to death!
Thank you so much in advance for your time and assistance.
Best regards Terresa
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.

Hello, I am Keith, one of the experts on Just Answer, and happy to help you with your question.

I would suggest that you enter the amounts notified on the P45 on one copy of a SA102, you have to complete separate SA102s for every paid employment when you submit an annual self assessment tax return. You can use another form SA102 for your later employment using the P60 [End of the Year Certificate] issued to you at the conclusion of each tax year. Have a careful look at this P60 as it may well quote the employment income received and tax deduxted from both the current and the former employment. It is perfectly possible for a company director, who is classed as an employee per se and must be paid through PAYE, to receive little or no remuneration. If the director's income never exceeds the monthly lower earnings limit each month then there is no requirement to make a monthly return on line through RTI [Real Time Information], the on line PAYE employment system. If the P60 does give a previous employment figure, forget the P45 in your possession and use the data from the P60, but remember not to double count the previous and current figures, each should be on seperate SA102s, but together should aggregate to the total P60 data.

It seems a right nightmare, I know, a real Dad's Army 'Don't Panic!' situation, but a quiet saunter through will quickly resolve your problems. This advice assumes you are dealing with the 14/15 tax return and you have plenty of time for this return to be rendered. If an earlier tax year is involved then answer HMRC's letter with the appropriate remuneration received and tax deducted as a company director using the method I have explained. Finally tread warily and don't mix up the tax years. A few minutes with a wet towel wrapped round you head and the backs of several envelopes should have this matter resolved over the weekend.

I do hope that I have shown you a way forward with your problem.

bigduckontax and other Tax Specialists are ready to help you
Customer: replied 2 years ago.
Hi Keith, thank you so much for your help. It's for the tax years before my company was dissolved. I work for only two clients and neither have given me a P60 as both were done through my limited company. Even my agency hadn't given me a P60 or P45. All I have as proof of income is my P45 from my accountant from the limited company and my company invoices. This is why I'm not sure what to declare because I'm not sure which part or how much of my dissolved company's income is mine to declare as my income. I worked as PAYEE after my company's been dissolved and the tax for that is fine HMRC isn't interested in that. They want my income as its director from when I work as a limited company because they haven't got any figures as no company accounts were filed.
Where do I go from here? Legally where do I stand? I have been told HMRC can't chase the company for its accounts as the company's been dissolved by companies house.
Expert:  bigduckontax replied 2 years ago.

Did you rescue details of the income paid out to you by the dissolved company or can you derive that from the company accounts even if these were not filed? Otherwise I suggest that you use the P45. As well as you having a copy HMRC will have one also, a point to which you should draw their attention when you communicate with them giving the relevant data asking them why they are wasting your time.

It is possible that HMRC already know the answer and are employing their usual guessing game technique. They will be back quick enough if the P45 data does not correspond to their data.

I recall in one job where I ran a huge pay roll section/ Wwe were continually bombarded by the Inland Revenue as it was then requesting details of previous years payments to employees. Eventually one of my clerks discovered that our P60s were in the tax office basement sealed up with a note from the chief of the office that under no circumstances were they to be opened. Thereafter all requests were refused and the IR directed to their basement store! Surprisingly all the queries which had wasted a lot of time dried up.

Please be so kind as to rate me before you leave the Just Answer site.

Customer: replied 2 years ago.
That's brilliant thank you so much!
Expert:  bigduckontax replied 2 years ago.

Delighted to have been of assistance.

Thank you for your support.

Related Tax Questions