No! :wink: Your company will pay 20% Corporation Tax if the Profits Chargeable To Corporation Tax (PCTCT) is £20k (I'm assuming that there is no other 'kind' of income here). It would amount to £4k but do remember that your accounting profits do not necessarily equal PCTCT and also it will depend on...
1) HO count Net dividends or Gross Dividends? Gross 2) Do I need to pay tax on company profit or dividend income? The company will pay Corporation Tax on company profits. For current rates see http://www.hmrc.gov.uk/rates/corp.htm You as an individual are subject to Income Tax on dividends. For cur...
My point is that you can't over-declare earnings for a UKBA application and can't under-declare self employment income when filing a self assessment tax return. If someone has an accounting year from 6th April to 5th April but is claiming an earnings period from 1st Feb to 31st January then of cours...
I'm gathering that a thiru has written a question and is now being thrown open(?) On that basis I'll stick my fourpenneth in... It's not really for us to decide for you thiru. Whether you go the sole trader or limited company route is ultimately down to you. There are advantages and disadvantages to...
If the money was earned in January then it falls out of the earnings period and if earned in February then it is in the earnings period. It doesn't matter when you were actually paid, it's when it was earned. Now I am coming at this from the point of view of an accountant (we prepare accounts on thi...
Some one said that I may also need, A) Invoice Explanation letter from my accountant, is that same as profit and loss account B) A letter from the accountant which would include the earning from both employment and self employment , BUT I DONT KNOW WHAT WOULD YOU CALL THAT LETTER. I would appreciat...
So I dont consider that a part of my expenses, even though I can include it while preparing my tax document. Smile Noooooooooooooo! - You can't do this! Don't do this! If you end up doing this you are either inflating what you are declaring as earnings to UKBA or you will be claiming business expen...
Specifically regarding .... Can I request my accountant for P60 for the period ending 05/04/2012? Assuming your company is also set up as an Employer (for PAYE/NI) with HMRC then the company has until May 19th to file the Employer Annual Returns: http://www.hmrc.gov.uk/paye/payroll/year-end/annual-r...
1)I registered sole trader with MY name, I will use MY regular bank cheque account. Yes that is fine. Legally you and the business are one and the same person. If you decided upon a business name you would really be 'discplayer trading as x' No problem with using your own personal bank account eith...
Thanks gmopla - the only reason I asked was to check if there were any obligations regarding sending in tax returns. I'd keep in close contact with your accountant and follow their advice regarding the filing of tax returns and dealing with HMRC. First of all though do check your correspondence for ...
It will depend on your earnings period - the P60 will only prove the earnings you are claiming if your earnings period coincides with the income tax year.
Do check previous correspondence from HMRC (it's a 10 digit number usually at the top of the letter somewhere). However if you can't locate it from that then call the Self Assessment helpline on 0845 900 0444. They won't tell you over the 'phone but will send you a reminder in the post. Out of inter...
Having no expenses as a result of running a business would be quite a skill (!) but your logic is correct there. For UKBA you would be declaring the £20k as self employment income and then adding on what the employed gross salary was. For HMRC if you have profits for your period of £20k then that wo...
For employment income - gross salary (prior to tax/NI being deducted)
For self employment profits - net profit (but with sole trader accounts net profit is turnover/sales less expenses but not tax .... so look on it as net profit before tax)
1. Their definition is slightly different to how you've interpreted it - UKBA mean source as a type of income such as dividends or salary rather than the source as in who prepared the documents. Each type of income claimed will then required two corroborative pieces of evidence; each will be conside...
You've pretty much answered your own question there Sahib! Just speak with your HR and see if they can (or will) do anything for you. Without wishing to cause unnecessary panic, since the P60 is the counterfoil of a form (the P14) which is filed by your employer with HMRC, do expect your HR people t...
I'm not a caseworker (obviously) so don't make the decision but at the end of the day you are complying with your tax obligations - it's just that at the level of salary you are at, neither yourself nor the company are required to pay National Insurance contributions. You are far from a unique case ...
No you won't be able to. As a sole trader you and your business are one and the same legal person (i.e. you) whilst a company is a separate legal person to you. You can, however, use your own personal bank account for sole trader business activity. Whether you wish to open another one to keep things...
A very popular question this so here goes ...... Leaving aside what HMRC would say, many accountants/tax professionals would say and pretty much what everyone else would say, according to UKBA (as per the Immigration Rules): Under Part 6A of these Rules, "Self-Employed" means an applicant is registe...
In lieu of any other answers, in that case the best thing is to just get an explanation worked into the accountant letter. If you can get through to them do speak to UKBA of course as it's their opinion that matters.
