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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4983
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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Can you answer me some question on setting up a ltd company

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Can you answer me some question on setting up a ltd company ?
Submitted: 1 year ago.
Category: Tax
Expert:  taxadvisor.uk replied 1 year ago.
Hello and welcome to the site.Thank you for your question.May I know what your question is please? Many thanks
Customer: replied 1 year ago.

I was to know how to extract money from a Ltd company as a director I could be paye I think and then could I pay myself a dividend at any point in the year. Would this dividend then mean I have to set up my own self assessment as an individual ?

Expert:  taxadvisor.uk replied 1 year ago.
Thank you for your reply.My apologies for the delay in my response as I was busy with a client.If you were just drawing a salary and you were not a higher rate taxpayer , you would most likely not have to file a self assessment tax return.On the otherhand, if you were in receipt of dividends and other investment income you may have to register for self assessment as an individual and then file a tax return.More information on who must send a tax return is covered herehttps://www.gov.uk/self-assessment-tax-returns/who-must-send-a-tax-return There are changes to how dividends are taxed wef 6 Apr 2016. If you were to receive dividends in excess of £5,000 in tax year 2016-17, any amount over the £5,000 would be taxed as there will be a dividends allowance of £5,000 in addition to personal allowance.More informaation on taxation of dividends wef 6 Apr 2016 is covered herehttp://www.rossmartin.co.uk/directors/tax-efficient-remuneration/1591-summer-budget-2015-dividend-tax I hope this is helpful and answers your question.If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.
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Customer: replied 1 year ago.

Thank you.

So looking at this is saying a company director must file a self assessment form. So do they pay a salary as if they are self employed or you have to pay PAYE ?

Expert:  taxadvisor.uk replied 1 year ago.
Thank you for your reply.You can't work as self employed for your company.. You will become an employee and your salary will be taxed under PAYE. I hope this is helpful