A client, sole trader started consulting for a company in Jul 2011 and has received payments in nov 2011 and february 2012. The client now wants to setup a company and start invoicing. My question is can the two earlier payments be brought into the company as income/revenue and then a dividend be declared and paid by the 5 April 2012?
Any help is GREATLY appreciated, on a tight deadline!
Thanks.
Replies (3)
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Sole Trader
No this income will be treated as self employed income and will need to go on clients self assessment tax return
No
The company is a legal entity in it's own right and can't have income prior to it's incorporation as legally it didn't exist
He will have to declare the income as self employed