FAQs

How are dividends taxed?

Dividends are taken on the profits available in your company and are a generally a more tax efficient compared to a salary. 

Tax is paid on any dividends received over £2,000 at the following rates:

1. Basic rate - 8.75%

2. Higher rate - 33.75%

3. Additional rate - 39.35%

The amount of dividend tax you are required to pay is calculated on a Self Assessment tax return each year.

How do I know how much to pay on my Self Assessment?

You can find this information in your Self Assessment Tax Return and SA302 tax calculation.

The SA302 is helpful when making payments as it shows the total due by the deadlines and your UTR number. 

If we filed your return, you’ll find copies of your Self Assessment Tax Return and SA302 in your document store.

How do I register for Self Assessment?

When an individual identifies a reason for filing a Self Assessment tax return, they need to tell HMRC. You can do this either by completing an online HMRC form or by downloading and posting a SA1 form to HMRC.

It takes around 6 weeks for HMRC to process and once done, they will post a letter confirming registration and provide you with a Unique Taxpayer Reference (UTR) number. You need this to file your tax return.

As soon as you receive your UTR number, please email a copy to us at support@provestor.co.uk

Late payment and tax return filing penalties

If payment or filing deadlines are missed, HMRC & Companies House don't hesitate in issuing a penalty with interest charges if payments are overdue.

PAYE

Late filing of RTI submissions result in HMRC penalties of £100 per late submission. With a submission generally required for each tax month, these penalties can become significant.

Provestor takes care of your RTI submissions for you each time a payslip is created.

VAT

If you miss a VAT return filing or payment deadline, HMRC apply surcharges that are a percentage of the VAT due. If you miss filing a return, HMRC will estimate your VAT due and apply the surcharge to their estimate.

Corporation Tax

If a Corporation Tax return is filed late the HMRC penalties increase the later the return becomes. The automatic penalty starts at £100 that starts to increase after 3 months.

Self Assessment

The automatic HMRC penalty for filing a Self Assessment Tax Return late is £100. This starts to increase after a return becomes 3 months late. These penalties can be complicated as they also charge interest.

Company accounts

For late filing of accounts Companies House penalties start at £150 when accounts are 1 day late increasing to £1,500 if accounts are delivered over 6 months late.

What are the deadlines for payment of PAYE?

Any PAYE (income tax and/or National Insurance) is payable to HMRC quarterly. PAYE periods run as follows:

1. 6th April-5th July (payment due on 22nd July)

2. 6th July-5th October (payment due on 22nd October)

3. 6th October-5th January (payment due on 22nd January)

4. 6th January-5th April (payment due on 22nd April)

You will receive an email from us once your PAYE payments are due with payment instructions.

What is a Company Tax Return (CT600)?

A CT600 is a company tax return which is submitted to HMRC and outlines the amount of Corporation Tax your company is required to pay along with calculations of how this figure was calculated.

This is normally filed at the same time as your year end accounts are filed at Companies House.

What is a P45 and how do I get one?

A P45 is the reference code of a form titled ‘Details of employee leaving work’ that is issued by an employer when an employee leaves.  It is used when an employee ends or starts employment with a company and allows each company and HMRC to accurately calculate tax for the year.  It contains details about earnings and tax paid during the tax year.

If you would like to request a P45 for anyone in your company, please email your account manager at support@provestor.co.uk.

When do I need to pay my Corporation Tax?

You must pay your Corporation Tax by 9 months and 1 day after the end of your accounting period. Your accounting period is usually your financial year end but you may have two accounting periods if it is your company's first year.

When we prepare your accounts and Corporation Tax return, we will provide you with details of your payment deadlines.

Where can I find my Accounts Office Reference number?

Go into PAYE payment screen screen in the Taxes & accounts area in the menu. Select the relevant PAYE payment to view the Accounts Office Reference number.

Where do I find my company UTR?

Your Company Unique Taxpayer Reference (UTR) can be found on a HMRC document called a CT41G. This document is sent to your registered office address shortly after you incorporate your limited company.

If we have your Company UTR it is in the company settings of Provestor.

Where do I find my personal UTR?

An individual Unique Taxpayer Reference (UTR) will have been issued by HMRC if you have completed a Self Assessment tax return in the past. The UTR is made up of ten digits and can be found on a previously filed tax return, a Notice to complete a tax return or on a Statement of Account.

If you have not registered for Self Assessment, you can find out more here.

Where do I find my TIN?

Your Company TIN is also known as a Unique Taxpayer Reference (UTR). It can be found on a document called a CT41G, which is sent to your registered office address shortly after you incorporate a limited company.

If we have your company UTR it will be displayed in the company settings screen of your software.