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taxadvisor.uk, Chartered Certified Accountant
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I paid myself from the ltd company in 2018-19 in cash but i

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I paid myself from the ltd company in 2018-19 in cash but i have only just found out this should have been through a PAYE system, what should i do now?
JA: Have you talked to a tax professional about this?
Customer: no
JA: Anything else you want the Accountant to know before I connect you?
Customer: I am completing my 2018-19 self assessment now

Hello and welcome to JustAnswer. I am here to help you.

Please advise

- what amount you paid yourself as salary in cash in the year 2018-19..

- is your company's accounting year end

- did the company pay you any dividends

Many thanks

Customer: replied 5 months ago.
Hi,Ok so I paid myself the following:12-Jun-18 ATM CASH £100.00
11-Jul-18 ATM CASH £50.00
16-Jul-18 ATM CASH £250.00
13-Aug-18 ATM CASH £100.00
14-Aug-18 ATM CASH £80.00
12-Sep-18 ATM CASH £100.00
14-Sep-18 ATM CASH £200.00
30-Sep-18 ATM CASH £200.00
07-Oct-18 ATM CASH £100.00
10-Oct-18 ATM CASH £200.00
25-Oct-18 ATM CASH £260.00
27-Oct-18 ATM CASH £50.00
29-Oct-18 ATM CASH £50.00
01-Nov-18 ATM CASH £50.00
19-Jan-19 ATM CASH £40.00
21-Jan-19 ATM CASH £100.00
01-Nov-18 Credit Cheque £8,000.00
15-Aug-18 Credit £735.47
17-Jul-18 CHAPS £207.95
TOTAL INCOME £10,873.42
Customer: replied 5 months ago.
No dividends paid
Customer: replied 5 months ago.
March year end

Thank you for your reply.

Please advise

- if you have now registered the company as a new employer

- have you finalised your company accounts for year ended 31 Mar 2019

Many thanks

You may wish to request a phone call so I can explain to you your options in simple terms.

Many thanks.

Customer: replied 5 months ago.
I haven't yet resgistered as an employer, thats my next step. my accounts are done but i only realised i should have been an employer while doing my self assessment
Customer: replied 5 months ago.
Im currently doing my self assessment and don't no what to do

Thank you for your reply.

If you have not submitted your company accounts as yet, I would suggest your show salary (702x12) £8,424 (actual figure £8,423.42) and dividends £2,450.

If you have already submitted company tax return showing £10,873.42 as salary then in the absence of salary payments under PAYE, you should show this figure as other UK taxable income within the main tax return.

It is important you operate a PAYE scheme otherwise you may get fines from HMRC for not operaating a PAYE scheme.

My aim is to give you a professional service. I hope this is helpful and answers your question.
Please remember to rate my service by selecting the 5 stars at the top of the screen before you leave JA today. If you need more assistance, please use the reply box below and let me know. It has been my pleasure to assist you with your question.

Customer: replied 5 months ago.
Will i get in trouble if i just put 18-19 into other uk taxable income?Also I will now make myself an employer, will I have to put through all my payments in this tax year so far (19-20) through the paye scheme?

Thank you for your reply.

My suggestion of splitting the total into two components is less troublesome. You could be penalised for not paying the correct NI.

I presume you are referring to setting your company as an employer.

I hope this is helpful and answers your question.

Customer: replied 5 months ago.
I have already done my company tax return so will have to do as you suggested and put this as other taxable income on my self assessment, will I get into trouble for this?In relation to the second part of my question I have been paying myself the same way since 06/04/2019 so in this current financial year which isn't yet finished (obviously, sorry of cause you know this) should i set up my company as an employer and backdate all the payments i have received this year so far?

Thank you for your reply.

I have told you before your should set up the company as an employer and operate PAYE properly.

I don't think you would get into trouble for disclosing remeuration as other taxable income and if you do follow advice and set up a PAYE scheme, HMRC would be more understanding.

I hope this is helpful and answers your question. I have now answered all your questions.
I will appreciate if you would kindly rate m yservice by selecting the 5 stars at the top of the screen before you leave, to ensure I get credited for it by Just Answer today.

Customer: replied 5 months ago.
I am going to set up my company but the question im asking is should i set it up and then start paying from that dat or should i backdate and pay myself through the paye for the payments already taken this year so far

You should backdate it to beginning of tax year Apr 2019.

I hope this is helpful.

Customer: replied 5 months ago.
Out of curiosity and i hadn't submitted my company accounts yet and the yearend, (for arguments sake) was August and I did as you suggested show salary (702x12) £8,424 (actual figure £8,423.42) and dividends £2,450. what would be the procedure with the paye scheme then?Would I backdate then right back to when i first started? and if i did what would i do in relation to my self assessment now?

Thank you for your reply.

In this case I would file self assessment return as I have suggested and operate PAYE scheme on now onwards.

Backdating is an invitation to scrutiny. I would not backdate to previous tax year.

I hope this is helpful.

Customer: replied 5 months ago.
What do i need to do to put the £2450 as dividends?

Thank you for your reply...

You have gone beyond your orginal question and follow up questions and I have answered all of them.

If you have already finalised your company accounts for ye31 Mar 2019, its too late to adjust the figures.

I will appreciate if you would kindly rate my service to ensure I get credited for it by Just Answer today.

Many thanks

Customer: replied 5 months ago.
If i finalise this can you please answer my question

I have answered your questions in detail. This is unrelated and I will happily answer question from you if put as a fresh question.

I hope this is helpful.

Many thanks.

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I thank you for accepting my answer.

Best wishes.