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Posted Mon, 31 Oct 2022 09:12:00 GMT by BeingCallum
Hello, First time self-assessor here! I spent 5 months in tax year 21-22 working for a friend who paid me directly - not through PAYE, for a small company. I held back some earnings for my tax bill - that is not the problem. I was also made a Director of the company and a 20% shareholder. Do I therefore report the money I was paid as Dividends or as self-employed income? Tax advisors I have spoken to are very expensive for the small amount of income this is regarding (it is over £1,000). Any help appreciated.
Posted Thu, 03 Nov 2022 11:53:25 GMT by
Hi BeingCallum, 

This would still appear to be employment, although not via a formal contract.  

You should declare the income on the employment page (SA102) with no tax deducted.

Now that you are a director and shareholder, you should complete the employment page for this, ticking the box 6 for directors and box 7 if this is a close company.

You can find the guidance here: 

Self Assessment: Employment (SA102)

Thank you. 


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