Quick tax question

[Fencing]

Hi all,

 

Im doing my 2012-2013 tax return, quick question on "claiming to reduce your 2013-14 payments on account"

 

This year I became employed by my ltd company, im payed a small amount as a salary, and take other in dividends, surely I should reduce my account payments?

[Alycidon]

You wil get any overpayments back pretty sharpish once HMRC get your return and work out whats due.

 

A

[GardenKit]

I let my accountant sort my tax. Worth every penny.

[skyhuck]

Hi all,

 

Im doing my 2012-2013 tax return, quick question on "claiming to reduce your 2013-14 payments on account"

 

This year I became employed by my ltd company, im payed a small amount as a salary, and take other in dividends, surely I should reduce my account payments?

 

I do the same as you and pay nothing on account, I pay corporation tax end of july each year.

[Inoff the Red]

Yes you can apply to reduce your payment on account.

 

I wouldn't advise paying more on account than you need to because although HMRC will pay it back, and no repayment would be made until your 2013/14 tax return was submitted (deadline 31 January 2015) and processed.

 

The switch from sole trader to limited company is often worth doing, but when looking at your cash flow, don't forget the corporation tax liability you will have in the limited company. (As a company can only pay dividends from realised profits there will be a CT liability).