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Posted Sat, 05 Aug 2023 13:33:41 GMT by jen-c
Hello, My scenario: - I live in the UK - I co-own a NZ-based company which I hold shares for - I do not have an employment contract with my company (not an employee) - I am billing my company for the work I am doing (software development) as a self-employed entity - Similar to this post - - my income has been paid by my company to me via bank transfers in GBP - Similar to that linked post, I assumed I would treat my income as self employed income - My accountant is telling me if I was not employed, it is necessary to submit this information as a foreign dividend - I have not been classing those payments as dividends because: a. my company has not paid out shares to shareholders b. this money is for my software development work c. this money is not payment because of company-profits Am I right to say this should be self-employed income and not foreign dividends?
Posted Mon, 07 Aug 2023 21:14:24 GMT by jen-c
* I have since done some reading on this and will proceed to treat this as a dividend or loan (and look into setting up a PAYE system in the future).
Posted Thu, 10 Aug 2023 07:12:30 GMT by HMRC Admin 25
Hi jen-c,
No, this is not dividend income.
It is self employment income. 
Thank you. 
Posted Thu, 10 Aug 2023 08:04:56 GMT by jen-c
Hi HMRC, thanks for the reply So to confirm: - I am a co-owner of NZ company, (let’s say) J - I have no employment contract with J - In my 2022/23 bank statement, I have income from J and my co-owner, X - Despite holding shares in J, and X marked as a co-owner of J, I can treat this as self-employed income? Just wanted to double check. Thanks!
Posted Tue, 15 Aug 2023 16:24:37 GMT by HMRC Admin 10
Yes, the income you receive from your NZ-based company is categorised as self-employed income.

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