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Posted Sun, 26 Nov 2023 11:26:34 GMT by
Hi I'm doing my personal self-assessment for 2022/2023. I'm confused about whether I declare my self-employment as a company director. For the period in question, I was working for an employer, and simultaneously, working as a company director in my own company. So,I was both an employee, and self-employed. However, for the purposes of declaring my self-employment, in the 'tailor my return' section at the beginning of the self assessment, the notes seems to state that if I drew no salary or benefits from the self-employment, then I don't need to declare it? I only took dividends, which I declared later in the return. I didn't take a salary or benefits. Do I still need to declare the self-emlployment? I've tried doing it both ways in draft, and neither seems to come up with a correct figure. If I don't declare it, I'm told HMRC owed me over £5k. Which doesn't seem right. If I declare it, then I end up owing HMRC over £5k. That isn't right either. I paid corporation of over £5k for that period already. The dividends I took were split 50/50 between myself and wife (co-director) and were only £5700 for me, so I shouldn't be paying £5000 tax on that? Is there something obvious I'm doing wrong with this? It's causing me a lot of stress, as I just quit my job, and I'm working full time in my business now, so my household income has just dropped more than 50% this month. £5k either way is gong to make a massive difference to us right now. Thanks R
Posted Tue, 28 Nov 2023 13:04:41 GMT by HMRC Admin 8
Being a director of a limited company you would be paid under PAYE and a such this does not count as self employed income. you only declare your share of dividends received. guidance is available at:
Thank you.

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