I screwed up, forgot to pay my 2015/16 salary - second opinion?

**WordIsBond** · 26 May 2016, 07:51

OK, so you're an idiot, good to have that base covered.

Something you didn't ask about -- you do know you are going to have a corporate tax bill coming, don't you? Read the first timers guide (link in the right hand panel) to figure out what else you are forgetting / not knowing. Can't believe you didn't get an accountant first thing when you obviously aren't completely on top of things, but whatever. Make the mistakes stop today.

Now, on to your question, I see only one way you might be able to pull this off. HMRC's Basic PAYE Tools has a feature that allows for mistimed payments. That's when you make a payment (for reasons unspecified) after it was due and should have been paid. It MAY be possible to pay salary now after the fact as a mistimed payment, arguing (legitimately) that it should have been paid back then because you actually did earn the salary in 15/16 by working in that tax year.

This probably WON'T work. For one thing, you should have already done some end of year filing, which means it would probably be too late. Second, I don't know if you can do a mistimed payment after 5 April and cram it back into the prior year or not -- the software may not allow that.

But it may be worth discussing with your accountant.

£10K that could have been paid tax-free last year means £2K extra corporation tax plus £600 dividend tax when you pay out the remaining £8K. Unless you are in higher rate band, then it is £2.6K.

Most likely, it just means your Asia travels cost you £2-5K more than you thought they did. That's a lot, but not the end of the world. Hope you enjoyed it.

**dx4100** · 26 May 2016, 08:03

Your accountant is right. You can't do it. I think

**kiwilondon99** · 8 June 2016, 17:15

co accounts

in your company accounts to reduce profit at end of march you should suggest your accountnat makes a £ Bonus accrual. the sum - accrued - will reduce the company profit to march if that is required [ providing the bonus is paid within 9 months ] that will effectivley reduce the co profits and corporationtax bill

as to 15-16 personal allowance soz - still there but you will not have any 'co emoluments' unless there is a p11d to file ???? etc to mop some of it up [ even to claim self employed - you would have needed to register well in advance so as this is then retrospective its not avoidance........ but and would also be subject to penalty ]

**kaiser78** · 9 June 2016, 08:40

Originally posted by brodey10 View Post

Hi All, I am new to the forum and hoping for a second opinion.

From April 15 to April 16 I only worked end Nov to start March.
I took money out of the company more or less weekly as I was paid.
I took this money out either as dividend or directors loan.

I (stupidly) was so busy travelling I didn't appoint an accountant until now. And I didn't do any salary planning.

Now my accountant tells me I can't pay a salary for 15-16 because it's past April.

So, looks like I will have lost out on ~10,000 tax free.

Are they giving me the right info?

Yes - I know I am an idiot and it's my fault. But I did have a great time travelling around Asia when I should have been salary / tax planning!

(some small consolation)

Just take the view that your travels have cost you an extra ~10,000 and make sure you now have a proper accountant engaged.

**Cirrus** · 9 June 2016, 09:27

Real Contractors Don't Play Safe

If you were taking money out then I can't see why you can't call it salary. It's only when you submit your accounts that you crystalize what actually happened. Lots of people take money out and then later ask the accountant to turn that chaos into a neat story.

If you ever got audited by the Revenue you might have some eyebrows raised.

I would talk to another accountant. Some accountants take the cover-my-arse route; others don't. Pick the latter - always.

**VillageContractor** · 9 June 2016, 09:27

Originally posted by brodey10 View Post

Hi All, I am new to the forum and hoping for a second opinion.

From April 15 to April 16 I only worked end Nov to start March.
I took money out of the company more or less weekly as I was paid.
I took this money out either as dividend or directors loan.

I (stupidly) was so busy travelling I didn't appoint an accountant until now. And I didn't do any salary planning.

Now my accountant tells me I can't pay a salary for 15-16 because it's past April.

So, looks like I will have lost out on ~10,000 tax free.

Are they giving me the right info?

Yes - I know I am an idiot and it's my fault. But I did have a great time travelling around Asia when I should have been salary / tax planning!

(some small consolation)

Please do some research to understand how your individual and business finances work. There are plenty of good links on here.

Don't question the accountants advice when you don't like their answers.

**SueEllen** · 9 June 2016, 09:47

Originally posted by VillageContractor View Post

Don't question the accountants advice when you don't like their answers.

Not true - you can question the accountant's advise but you may soon find yourself without an accountant.

**northernladuk** · 9 June 2016, 09:58

Originally posted by SueEllen View Post

Not true - you can question the accountant's advise but you may soon find yourself without an accountant.

But he didn't get advice right.

**Cirrus** · 9 June 2016, 11:04

The Cut of Your Jib

Originally posted by northernladuk View Post

But he didn't get advice right.

Yes he did - he came on here. We know more than any run-of-the-mill accountants. Otherwise why would feel justified in passing opinions all day??

I just went to the surgery. The nurse said "Who said you should have this blood test?" I said "I asked the Receptionist to book me in" "Oh we normally only do these if the Doctor says so"

She did it of course.

I think she realised I was from CUK Forum

I screwed up, forgot to pay my 2015/16 salary - second opinion?