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bigduckontax, Accountant
Category: Tax
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I am a self employed Locum pharmacist and currently registered

Customer Question

Hi,
I am a self employed Locum pharmacist and currently registered as a sole trader and use online tax assessment. Last year, I have used my income I generate as a sole trader to start up a limited company that has a different business nature (import/export), for which I had to rent an office and has had business expenses related to that company. My question is: do I get any kind of tax relief or allowance on my sole trader income as a pharmacist because I used that income to invest in a limited company?
I hope my question is clear enough and that someone can get back to me soon please.
Thank you
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
Hello, I am Keith, one of the experts on Just Answer, and happy to help you with your question.
I am sorry to have to tell you, in a word, no. A limited company is a separate legal entity from its shareholders and directors and has its own Corporation Tax (CT) account. Furthermore, if you are a director of the company, any disbursement made to you apart from the reimbursement of expenses laid out by you on behalf of the company, for example as income, must be made through PAYE channels. A director is classed as an employee per se. If you are paid less than GBP 486 a month then you need not make monthly returns on line but have to report wages annually through the same medium.
I do hope that I have shed some light on your situation for you. I am so sorry to have to rain on your parade.
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Expert:  bigduckontax replied 1 year ago.
On reflection my reply was a tad convoluted. You can reimburse yourself from the company for any expenditure laid out on its behalf, for example setting up, stationery postage etc. If you pay yourself a salary then this must be done under PAYE arrangements. However, if you receive under GBP 486 per month there is no requirement to report through RTI [Real Time Information] and advising HMRC may be left until the end of the tax year.
Expert:  bigduckontax replied 1 year ago.
Thank you for your support.

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