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Sam
Sam, Accountant
Category: Tax
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My husband and I are divorcing and I have shares in 3 of our

Resolved Question:

My husband and I are divorcing and I have shares in 3 of our companies of which we have yet to sort out.
This tax year he has not paid me any dividends and I have had to go onto benefits with him paying me nominal maintenance
He now wants my P60 for the accountant to complete year end and put through the child maintenance (and mortgage) my ex has been paying me as my dividend share?
Can you please advise if this is correct or legal and what to do about it please?
Kind regards
Paula Johnson
Submitted: 6 months ago.
Category: Tax
Expert:  Sam replied 6 months ago.

Hi Paula

Thanks for your question

You would only have had a P60 for the salary element you were paid IF employed or a director (rather than just a shareholder)

The dividend is never included in the P60 though - so if this is all you had, then I would assume you were just a shareholder in these companies -

But depending on what benefits you received, and if claiming a taxable element at 05/04/2016 - then you would have been provided with a P60 from the Job Centre.

Does the accountant complete your personal self assessment each year - is this why you are being asked for your P60?

Your P60 would not be needed for child maintenance of the company tax positions -

But other than your self assessment there s no reason your P60 would be needed - so can you advsie further

Thanks

Sam

Customer: replied 6 months ago.
It is for the self assessment he needs it.Does he add on my dividends to increases my income (which the tax credits will decrease)Should dividend be paid into MY account and not given to my by my ex as I haven't seen anything. He is basically to avoid paying me any maintenance (waiting for court date) and saying my dividends are such.I was advised by my solicitor not to agree to sell the businesses without the financial arrangement in place and my ex has put this on one of the letters and is following it? Can he do this??“due to your client not agreeing to sign over her shareholdings in PJ Analytics, these payments will become a tax liability. Not only is there a liability to tax, but it will continue to be treated as part of her income and will continue to affect her taxable income for the purpose of claiming benefits.”I suppose this is what he is trying to enforce in the year end accounts.Any advice will be appreciated.Thank you
Paula
Expert:  Sam replied 6 months ago.

Hi

Thanks for your response

The dividends are only added in if they were paid to you, which you advise they were not - so they cannot be added in.

I would be inclined to not let your husbands accountant handle your self assessment return and find your own accountant (if you do not feel confident enough to do this yourself)

All you need to do is register yourself (or let a newly appointed accountant) register for online services to file your 2016 self assessment return and you can then actually ensure ONLY the income (if any) that you received is entered onto this return.

But the dividend should always come straight from the business and not your ex husbands' personal bank - and this then is a legal issue - and not tax - and I am sure you can appreciate I can advsie on the tax position but cannot offer legal advsie as this is not my field of expertise and it would seem you have all the appropriate legal advsie in respect of the business/share holder position.

But the dividends IF paid will affect your benefits as they are taxable income - but if you have had nothing to date then just advsie the benefit office as and when this payment is made (as I assume its usually an annual payment?

So when did you last get a dividend payment - when would you usually get them and are you a shareholder or director? And are you in the process of selling your shares as part of the divorce?

Thanks

Sam

Customer: replied 6 months ago.
Hi Sam,Thank you for your advise and I will be emailing the accountant asking him to stop. Do I need to sign my self assessment if he does it before he sends off (he does them online). Can he only do it with my P60 - if I withhold that does that cause him a problem?I am a director in 2 businesses with 95 & 25% shares and a partnership.My ex wanted to sell the businesses recently and my solicitor advised against as we were in the middle of trying to agree finances of which we didn't agree and were planning to go to court. This would have made things messy.My ex gives me £800 per quarter from his bank to mine with the narrative "maintenance" and that is it. Nothing from the companies. However as you can see from the liability paragraph he gave me he is trying to claim that this money IS my dividends despite having no paperwork from the company and not even from the company bank. Hence my total reluctance to declare them! I earn £500 per month as a TA and collect benefits of £600 and his £260 per month to support his 2 children. Basically he is trying to evade payment and dressing it up as something else.Am I able to contact the IR and open up a case with them so we can monitor my income??Thanks again
Paula
Expert:  Sam replied 6 months ago.

Hi Paula

Thanks for your response

If your accountant submits your return online then its an electronic signature. so just email me (and send a letter special delivery) asking him to cease acting for you personally for the year 2015/2016 and ask him to send you details of the income that has been paid to you from each of the companies during the period 06/04/2015 to 05/04/2016

And yes he cannot submit your return without you agreeing to this in writing and certainly not without the P60 benefit details

But if you are director in two then you should have been paid at least a minimum salary as you cannot just take dividends (you can if you are just a share holder) so you also need to establish what salary you should have been paid, and then did you actually get this salary!

Then you will automatically have partnership profits (usually 50% share but perhaps this is a different ratio) so you need these figures too

Is the £800 maintenance though - have you anything in writing that agrees this, did this only begin after you separated - were you paid £800 a month before you separated. Can you prove this is maintenance (is this declared to the benefit office??) D

I am not sure what you mean by opening a case with IR so they can monitor your income? Perhaps you can expand

I am off to bed now, so will deal with any reply in the morning - I hope that is acceptable
Thanks

Sam

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