View Full Version : Need some Self Assessment help wrt dividends

11th December 2003, 14:32
I took out the final £6027 from my company in the last tax year before winding everything up.

In my Self Assessment I put this in box 10.15 (dividends and other qualifying distributions from UK companies). However Hector's wrote back to me saying he's moved it to box 1.8 (payments from P60/P45).

The change means an income tax bill of £342.32.

Who's right?

I should add that all my company money was taken out as PAYE apart from this money left in the company in before closing down. I issued myself a P45 in Dec 2001, well before the last tax year.

12th December 2003, 12:10
If you are outside IR35 - it should be a dividend unless you applied for clearance to have it treated as a capital distribution in which case its potentially a capital gain.

If you're not outside IR35 it may be that the Revenue are treating it as a salary payment.

12th December 2003, 18:11
Okay, thanks for that. I couldn't get an IR35-friendly contract so I'll have to pay it :( hopefully through PAYE.

(IR36 will probably be backdated 6 years anyway...)