Personal Tax - Ltd Company Dissolved

[Strepsi]

Quick question, my wife's business has recently dissolved as yet my wife who was the sole director and employee of the business hasn't completed her personal tax return.

What is the best way to complete her return, she never took payslips, only bank statements... how would HMRC check the return was correct?

[Deepie]

Re: Personal Tax - Ltd Company Dissolved

Give SXGuy a quick pm he'll know

[SXGuy]

Re: Personal Tax - Ltd Company Dissolved

Didn't receive a pm but noticed the thread.

Personal tax returns are for declaring either wages paid through the company on a paye scheme or declaring dividends the company has paid the director.
When you say all she had was bank statements that doesn't actually make any sense since bank statements are proof of monetary transactions not payments made towards the director? So a little confused. If you actually meant all she has is bank statements showing what she paid herself as a wage. Well then that needs to be shown under the dividends section of the personal tax return. Tax is calculated at 7.5% after the first 5k and upto the lower rate threshold.

If on the other hand she never took a penny for herself the you submit the tax return blank since there is no info to add.

If your unsure what you are doing, I'd advise paying an accountant to do it for you. Most cost in the region of £90 to £150 to file your S/A

And finally how do they know it's right? Well checks are random these days. If they decide to pull your tax return for investigation they will look at your bank statements and want all receipts and invoices, if they believe something doesn't add up they will look further in to it and can if needed go back upto 12 years. Then finally depending on whether any mistakes were deliberate of accidental they can impose further penalties and fines.