Closing the company

by minn at 12:14 16/12/14 (Ask-Legal-Accounting)

For the tax tear 2012-13, my company paid a dividend from retained earnings of £10,000, with £2,000 tax credit and £8,000 paid net, and that was what went on to my Self Assessment return.

The company finished the company year (1 May - 30 Apr) on a loss, therefore no Corporation Tax was paid. This is the final year of the company, as I closed it down. Is the shareholder liable for Income Tax? Then, for the tax year 2013-14, the £2,000 (plus another £2,000 retained earnings) mentioned above was taken out of the company without tax credit as part of closing the company, and therefore £4,000, after expenses incurred in closing the company, was declared as untaxed income. Was that correct? (Please say it wasn't!) Pete "We were criticised a lot for supposedly hanging on to a winning formula which we didn't know we had. In retrospect, we would have been called stupid for not sticking to it." Francis Rossi of Status Quo Tweet

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