Employment History

[qhussain]

Hi All,

I need your suggestion/help for my case:

I have been working as permanent employee from 2010 -till first week of March 2015 and from First week of March till now, I am working as director of Ltd company.

I have P60 for 4 years and P45 for period covering 1st April 2014 - till 4th March 2015.

I will be applying for ILR at end of this month(May 2015), I will be showing my earning(March 2014 -Feb 2015) as a permanent employee(as we can show 12 months out of 15 months). However I will keep required document for working as director of ltd company for backup(I will not submit ltd company documents with my application).

The issue is: I called HMRC to get my Employment History for 5 years, they are happy to send me the 4 years of employment history but they are saying they don't have any details of 2014/2015 earning, as I have started working as self employed.

I am bit worried now, please suggest me!

[mkh]

Hi All,

I need your suggestion/help for my case:

I have been working as permanent employee from 2010 -till first week of March 2015 and from First week of March till now, I am working as director of Ltd company.

I have P60 for 4 years and P45 for period covering 1st April 2014 - till 4th March 2015.

I will be applying for ILR at end of this month(May 2015), I will be showing my earning(March 2014 -Feb 2015) as a permanent employee(as we can show 12 months out of 15 months). However I will keep required document for working as director of ltd company for backup(I will not submit ltd company documents with my application).

The issue is: I called HMRC to get my Employment History for 5 years, they are happy to send me the 4 years of employment history but they are saying they don't have any details of 2014/2015 earning, as I have started working as self employed.

I am bit worried now, please suggest me!

Could you please share the phone number you called for your employment history. I tried 03002003300 several times with no luck.

[argus7]

HMRC would not have details for 2014/2015 because:

1. You have started self employment, Have you informed this to HMRC I assume yes
2. Your tax declaration for 2014/2015 will start after June 2015, when you would do SA in Oct 2015 by paper or online before 2016 Jan


It should be OK, Make sure you carry your employment details for last 4 years.

[hellonewhere]

Hi,

You were on PAYE until 04/03/2015.

You mentioned that you are the director of your own company from the first week of March 15.


I am assuming that your company was incorporated in March 15?.
If that is correct then, assuming that your company was incorporated on 01/03/2015; your year end will be 28/02/2016.

Your company's account can be filed after 28/02/2016. The deadline for filing at companies house being 9 months; corp tax due 9 months and a day later, filing at hmrc soon after etc.

As you are a director of a company, you will also be registered to file a tax return as you will draw dividends and dividends have to be declared on a tax return.

Your income will not be declared on your tax return as you have a company and are a director. Assuming that all your income are going through your company now.
You will obviously have a salary but that's to do with your company's account and isn't declared on a tax return. To be clear, you draw salary as a director and dividend as a shareholder; assuming your are both for your own company. Only your dividend is declared on a tax return and some other stuffs which am sure your accountant will explain to you in due course.

Now on the assumption that you already have a UTR;

the tax year for 2014/2015 starts on 06/04/2014 and ends on 05/04/2015.
You can file a return regardless of paper or online from 06/04/2015.
Bearing in mind, that the paper filing deadline is 31/10/2015 and the online filing deadline is 31/01/2016. The paper filing is early as HMRC has to do the tax calculations for you, whereas the online one, the software does all the calculations etc.

For 2014/2015 recalling the date above; you will only have to declare your dividend taken from 01/03/2015 ( assuming the date you incorporated your company) until 05/04/2015 - that's just a month's worth.

To be honest as you have only just started your company and trading, if I were you I would wait until the deadlines to file to have a better picture of how dividend you can draw etc. Your accountant would have a better idea as time would have passed and based on your income and expenses, a dividend figure could be apportioned for 2014/2015 and for 2015/2016 as you would have been trading for the full year, the difference would vbe declared on the tax return, if that makes sense!.

HMRC wouldn't have a record of your income for 2014/2015 as you haven't filed a return nor a company's account yet.

You can either file a return for 2014/2015 - working out the share of dividend for March to April 15, anytime now; preferably doing it online. If you do it online yourself, you can print out your SA302 yourself. If you do it online via an accountant, they can call HMRC or you can call yourself and request one after 72 hours. Please don't request a faxed copy as they block out the UTR number.
If you prefer to do a paper one, just bear in mind that HMRC won't process it quickly and it will take ages to come.

In your place, I would take the P60s and P45 you have got with you along with your company's incorporation certificate and self assessment registration documents and write a cover letter explaining that as your company was incorporated on 01/03/2015 ( assuming ), you haven't filed a tax return yet as you have just started trading and you don't know how much profit you will make yet as your dividend is based on your profit etc.

Sorry for all this long wall of text!

[hellonewhere]

^^^^ Please don't forget to put your gross salary and tax paid for 2014/2015 on your tax return for 2014/2015 ( in the employement section) along with the apportionment of dividend for the one month, if you are thinking file one now.

[qhussain]

Hi All,

Thanks a lot for your suggestions.

The immigrationboards forum is the best example, how people help others in difficult time.

Hi mkh, I have tried the same number that u r trying, u may need to wait on the call for long, I once waited for more than an hour but no body picked the call.

I am trying to get more details form my friends and their friends to find out, if someone has had in similar situation.

I found two guys with similar to my situation and they are suggesting me not to worry much, as their case got approved but the applied 1-2 year before and those these things were not that difficult.

I am also planing to go for a solicitor, I hope u guys understand my situation

Also just one point, my company was incorporated on 29th Jan 15,(as i was looking for contract role, so I got company opened, as per advice from my friends).

Kind Regards,

[hellonewhere]

Hi Hussain,

A company's account normally runs for 12 months - as it's your first year and incorporation date is sort of before the month's end - your year end will be a funny date ( by funny I mean not at a month's end ) - you can easily check this here

http://wck2.companieshouse.gov.uk//wcfr ... ompanyInfo
Count 12 months from 29/01/2015 and that's when your year end will be.

Your second year will be exactly 12 months. Anyway not to complicate things, an accountant will explain these to you.

If it worries you and you think you might have problems with HO;

you can file a return for 2014/2015 now - assuming you have your UTR number.

Fill in your employment income ( gross ) and the tax you paid - don't put in the NI contributions - from your P45 for 2014/2015,
and apportion a share of the dividend you think you could take for the whole year and divide that by 12 ( for 12 months ) and put that on your tax return. As you mentioned you only started trading in March.
Don't worry you won't get taxed twice for your employment as you have already been taxed through PAYE. You have to put it in your tax return as you need to declare all sources of income. You will get taxed on your dividend though.

Do it online as it's quicker to get the SA302 from HMRC that way. I needed mine for 2014/2015 for a mortgage application, and HMRC took two weeks to post it as they use snail mail 2nd class postage.
If you are unsure of how to do it, best do it via an accountant.

You are allowed to make corrections on the tax return before the deadline so for online filing, you can make as many corrections as you want before midnight 31/01/2016.
I would suggest not doing a paper one if you need it quickly. As I mentioned before, HMRC won't even process it for months yet!.

You can file a return now, and if further down the line before the deadline you think you overestimated or underestimated your dividend figure, you can make the necessary amendments etc.

As you mentioned you have your income for 2014/2015 - from your P45, all you are missing is March and beginning of April for 2014/2015 - is HO going to raise an issue re this?

Your remainder of April & May 2015 income will only be declared on your 2015/2016 tax return and you can't file that until 06/04/2016.

Hope it all works out. Good luck.