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Sam
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Category: Tax
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In the financial year 2014/2015 my only paid work came

Resolved Question:

Hi,
In the financial year 2014/2015 my only paid work came through my Ltd company where I am listed as the Company Director. I earned approx £10,000 that financial year and submitted invoices for the work. However, the invoices were paid very late and I only received the funds into my company account recently and so we're into a new financial year.
How can I pay myself but ensure I still get the 2014/15 tax free allowance that I would have been due if the invoices were paid on time. The company has only started trading in the past six months so this will be the first time I pay myself through the company.
Many thanks.
Submitted: 2 years ago.
Category: Tax
Expert:  Sam replied 2 years ago.
Hi
Thanks for your question
You can only treat this as 2014/2015 income if you not only submitted the invoices in 2014/2015 but also are self employed (or in partnership) or are issuing invoices to clients/customers. However this money is what you will draw OUT of the company and you are an employee of your own company (as a director) - so income such as this fall under PAYE.
You also have the ability to consider dividends which are paid simialr to a bonus but are treating differently for tax purposes (let me know if you want any more information)
So as a company director being paid a salary - PAYE states that the money is due tax on WHEN it is paid, not from when its due, so I am afraid this will be treated as 2015/2016 income and it would appear your 2014/2015 personal allowances are lost.
Even if we could somehow make this a dividend it still falls in to the 2015/2016 tax year for your as an individual
I am sorry the news is not more favourable. Let me know if I can be of any further assistance
Thanks
Sam
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Customer: replied 2 years ago.

Hi,

Thanks for your reply. Yes, that's not the news I had hoped for, so unfortunately it seems I've missed out on that allowance.

I do have a lot of work expenses to claim for items such as computer equipment essential to the company. I presume these can at least be paid as expenses and I won't get charged tax on those. Do you have any advice on how to pay myself correctly for those.

Many thanks for your help

Expert:  Sam replied 2 years ago.
Hi
Thanks for your new question
I have sent an additional services request as this is over and above what you indicated would be required.
If you do not wish to take up the additional services - then please do take the time to rate me for the work I have provided.
Thanks
Sam
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