I agree with the last comment, looks like dividends from profits whilst non resident don't need to be taken into account.
If you’re not resident in the UK, the tax you pay on all your income can’t be more than:
• the amount of tax that would be chargeable on income, other than the ‘disregarded income’ shown below, but before the deduction of any personal allowances due
• plus the amount of tax deducted at source from the ‘disregarded income’
‘Disregarded income’ includes:
• dividends from UK companies
Temporary non-residents and Income Tax
Certain types of income received during the period of temporary non-residence will also be treated as arising in the year of return, therefore being taxable in 2018 to 2019. These are:
distributions paid by close companies (or those that would be close, if they were UK resident) of which you are a material participator or their associate, in the case of distributions that are dividends, those out of trade profits arising in the temporary period of non-residence are not taxable - ‘Distributions’ includes dividend income received by a person abroad which you have power to enjoy, under the Transfer of Assets Abroad code
Thanks, seems like i was trying to over complicate it.
Is there anything else to be aware of or are there no further complications. It will be repaid by declaring a dividend in around 6 months time.
And out of interest, would it be the same answer if the wife was not an employee and only a shareholder?
Thanks for your comments.
I will tell the client to seek legal advise. Stupid question...So who would he contact for this, what kind of company?
Does anyone have a recommendation?
Sorry wrong termination. I meant basically the client just submitted the DS01 himself.
I will check about the VAT registration.
And they will remove a notice already issued for 2013/14?
I am talking about removing already issued TR's, not ones for the following year.
Thanks for your help, I will call and see what happens.
s8B was mentioned in the letter we tried first which didn't work so I will try the phone and let you know what happens.
I have tried
When I have rung in the past they just say, 'oh we cannot remove them, a Return has already been issued for that year and therefore needs to be completed'.
Have you had this success even after a Return has been issued for the year in question?
Thanks for the useful information Shirley
I have had the same kind of thing today.
2011/12 liability of £8k due 31 Jan 13
First payment on account £4k for 2012/13 due 31 Jan 13
Client only paid the £8k liability but HMRC have split the payment and allocated £4k to the balancing payment and £4k to the first payment on account.
Therefore, they are saying a 5% surcharge is due on half of the balance of £8k that has not been paid.
I have never seen them do this before, why does it not all just get allocated to the actual 2011/12 balance?
If this is now the case, then i will just reduce the payments on account to nil to cancel the surcharge on purpose and tell the client to just pay the payments on account as normal, although still slightly late and now technically not being expected by HMRC.
If I did this and reduce the payments on account, if the client still actually pays them in anticipation of his higher 2012/13 liability would this cause any issues or would everything work out ok on the statement in the end?
I was thinking HMRC may still ask for interest for us reducing the payments on account even though the statement would have been in credit. Baring in mind they only pay 0.5% interest on credits but charge 3% on late payments so to them they would be losing out, if there systems work it out like that?