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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15916
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I am an employee and shareholder of a UK company and the majority

Resolved Question:

I am an employee and shareholder of a UK company and the majority of my remuneration is by a monthly dividend. On this I will pay personal tax.
The company has a corporation tax liability due to be paid soon. As I am a shareholder and NOT a director do I have any personal liability when it comes to the payment of this corporation tax?
Submitted: 1 year ago.
Category: Tax
Expert:  TonyTax replied 1 year ago.
Hi.

As a shareholder, your liability is limited to the value of shares that you own but haven't paid for as you will read here.

I hope this helps but let me know if you have any further questions.
Customer: replied 1 year ago.

Thanks for your reply, though still not clear. Realised I should ask for more in-depth answer.

I own 10% of the shares in the company which I paid for.

In the tax year 2014-2015 I took circa £60,000 of my salary in shareholders dividends on which I will pay personal tax.

The company now calculates it owes HRMC £80,000 in corporation tax. Am I personally liable to pay any of this corporation tax as I am NOT a director of the company?

Expert:  TonyTax replied 1 year ago.

The company is responsible for the corporation tax, not the shareholders or employees. For example, if Barclays didn't pay its corporation tax. HMRC wouldn't go to the shareholders to get the money. In some situations, the company directors can be held responsible for a company's debts including tax.

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