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bigduckontax, Accountant
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I started a company in 2018 and paid myself 6K (not as PAYE)

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I started a company in 2018 and paid myself 6K (not as PAYE) now i am doing my tax returns how do i declare the 6K .. is it okay to register as self employed for that tax year? I am registered as the company director.

Hello, I am one of the experts on Just Answer and pleased to be able to help you with your question.

What was this 6K for?

Customer: replied 13 days ago.
it was taken from the business for myself should i declare it as dividend or directors loan or should i register for self employment and declare it as self employed income (the company is a limited company)

If you declare it as a directors loan it must be repaid within nine months to avoid horrendous tax complications. If you declare it as a dividend there must be spare profit available for that. If you take it as self employed income you are in serious trouble as such distributions can only be made through PAYE channels

Customer: replied 13 days ago.
OK so there was surplus profit so I can take this as a dividend from the company, but where do i need to declare receiving the dividends too? from a personal point of view? will there be tax to pay on this as its over the dividend allowance?
Customer: replied 13 days ago.
do i need to complete an SA1 form? and does it matter that it relates to a previous tax year?

The first 2K of dividends in the year is tax free. You declare these on the Income Pages on the SA100. Foe prior years you will have to amend earlier returns.

Customer: replied 13 days ago.
i have never made any previous returns as I had returned from the UAE in 2018 after being there for 20 years...

When you originally left the UK for the UAE did you send a Form P85 to the Inland Revenue as it was then?

Customer: replied 13 days ago.
I did in 1998

Thank goodness for that. You will be surprised at the number of ex pats who do not and get themselves into awful trouble with HMRC as a result. Just self assess for 18/19 and 19/20 and all should be well.

Customer: replied 13 days ago.
i need to go online and register for self assessment SA1 ? and then complete SA100 ?
Customer: replied 13 days ago.
Likewise was there a form I should have completed on my return in 2018?

The same. I always prefer to declare on paper.

Customer: replied 13 days ago.
sorry im not sore i understand I need to first register for self assessment first SA1?
Customer: replied 13 days ago.
also it is now better for me to register for PAYE from now-on to draw money from the company?

No, you just need to tell HMRC that yu have returned to the UK. That Department will split the returning tax year into two parts, one non resident and the other non resident.

Yes you must register the company for PAYE.

Customer: replied 13 days ago.
then i tell them about my dividens?
Customer: replied 13 days ago.
https://www.gov.uk/tax-return-uk according to this link i will still need to register for self assessment . !!

Indeed, that is correct, if you have a source of income outside PAYE.

Customer: replied 13 days ago.
Thank you for this ... just 1 more question I need to submit 2 APs for the 1st tax year 11th July 18 to 10th July 19 and AP2 11th July 19 to 31 July 19 do i need to submit 2 sets of micro accounts to companies house?

Company accounts are sent at the conclusion of each accounting period. You would appear to have the tax incorrect as you appear to be trying to apply Income Tax (IT) rules when companies pay Corporation Tax (CT). You do not need to send accounts to Companies House (CH) as the tax return system allows you to opt for abbreviated accounts to be extracted and sent to CH.

Customer: replied 13 days ago.
I spoke to HRMC and they said the company tax needs to be split into 2 periods

Yes, for the first two accounting periods, 11 Jul 18 - 10 Jul 19 and 11 Jul 19 to 10 Jul 20.

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