Self assessment SA100
Discussion
Evening all.
I am a typical PAYE employee. I earned approx £33k last year working for a bank.
On the 3rd April 2014 I received my first dividend from the family company of £75000 . This is what actually hit my bank account.
Today I signed up with hmrc to get my unique tax reference number to allow me to complete my online self assessment.
While I am waiting for this to come though I decided to download a paper copy of the return to see what it is like and to get familiar with it.
So some questions
1/
On page TR2', it asks what makes up my tax return. The only thing on this page is my employed income. So do I tick this box and then complete a supplementary page with all the details? I ask because hmrc should already know this as I am a paye and all tax has been paid, I don't want to double pay!
2/
On page tr3, this looks like where I would enter my dividend income, so I would declare this in box 3' "dividends from uk company's". Is that right?
Then the rest is blank apart from sigining it etc.
Is this correct. So best case just complete the dividend part, or worse case also complete the employed part aswell which they should already know,
Cheers.
I am a typical PAYE employee. I earned approx £33k last year working for a bank.
On the 3rd April 2014 I received my first dividend from the family company of £75000 . This is what actually hit my bank account.
Today I signed up with hmrc to get my unique tax reference number to allow me to complete my online self assessment.
While I am waiting for this to come though I decided to download a paper copy of the return to see what it is like and to get familiar with it.
So some questions
1/
On page TR2', it asks what makes up my tax return. The only thing on this page is my employed income. So do I tick this box and then complete a supplementary page with all the details? I ask because hmrc should already know this as I am a paye and all tax has been paid, I don't want to double pay!
2/
On page tr3, this looks like where I would enter my dividend income, so I would declare this in box 3' "dividends from uk company's". Is that right?
Then the rest is blank apart from sigining it etc.
Is this correct. So best case just complete the dividend part, or worse case also complete the employed part aswell which they should already know,
Cheers.
Thanks to you all for your help with this. First time doing it but it all makes sense now.
Ok so
Get my unique code from hmrc
Sign up to their system
Complete return as per above, completing my employers details and income as per my p60, and sticking in my dividend amount as per what I got, so 75k in my bank.
1/ is there any harm doing this sooner. When doing it online will it tell you right away what the tax liability will be. If not, how log will this take to know?
2/ going forward and if we assume I get the same again next April before the 5th, what can I do to lower my tax bill for the next amount. I have a work place pension, I have a un married partner on 24 k a year. I guess I want to lower my income somehow but not sure what's best. Pay more into a pension?
Ok so
Get my unique code from hmrc
Sign up to their system
Complete return as per above, completing my employers details and income as per my p60, and sticking in my dividend amount as per what I got, so 75k in my bank.
1/ is there any harm doing this sooner. When doing it online will it tell you right away what the tax liability will be. If not, how log will this take to know?
2/ going forward and if we assume I get the same again next April before the 5th, what can I do to lower my tax bill for the next amount. I have a work place pension, I have a un married partner on 24 k a year. I guess I want to lower my income somehow but not sure what's best. Pay more into a pension?
Mmmmm, getting pro help did cross my mind. In my naive mind all I have to do is pay tax due on the 75k and all is good.certainly doing that bit seems easy.
But going forward I want to limit any tax payable, on my normal paye pay I am a lower rate tax payer, but when I get this dividend it punts me into the higher rate. I could pay extra a month into my pension but I also need money to live off and this dividend next April May not happen, but it might so it's hard to plan for.
But going forward I want to limit any tax payable, on my normal paye pay I am a lower rate tax payer, but when I get this dividend it punts me into the higher rate. I could pay extra a month into my pension but I also need money to live off and this dividend next April May not happen, but it might so it's hard to plan for.
Again thanks for all your posts so far.
If I knew I would defo get another dividend then I would start ploughing money into my pension. But, I then suffer a reduced income which will mean less to spend, and potentially all for nothing if I don't get another dividend. As for moving the date, that's totally out with my control I'm afraid. What I might do is ask for them to pay half next year,and then another half the year after but I don't know if that's possible. All the uncertainly is what's screwing me just now.
Can a trust be set up which it can be paid into and then that somehow used to help spread out the income? If that makes sense.
If I knew I would defo get another dividend then I would start ploughing money into my pension. But, I then suffer a reduced income which will mean less to spend, and potentially all for nothing if I don't get another dividend. As for moving the date, that's totally out with my control I'm afraid. What I might do is ask for them to pay half next year,and then another half the year after but I don't know if that's possible. All the uncertainly is what's screwing me just now.
Can a trust be set up which it can be paid into and then that somehow used to help spread out the income? If that makes sense.
Thanks all for your help so far.
I have discovered one wee potential thorn for me, but maybe not.
The company is a family business. When they paid the dividend it was paid into the family trust which is administered by a local solicitor. They then divvy up the cash as per the trust agreement. So x amount to he owners, and y amount to me. It was done this way to ensure it was fair amd transparent etc.
So I got my money from he trust and not the company direct.
Does this make a difference to my tax and also how I declare it?
I have discovered one wee potential thorn for me, but maybe not.
The company is a family business. When they paid the dividend it was paid into the family trust which is administered by a local solicitor. They then divvy up the cash as per the trust agreement. So x amount to he owners, and y amount to me. It was done this way to ensure it was fair amd transparent etc.
So I got my money from he trust and not the company direct.
Does this make a difference to my tax and also how I declare it?
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