Self-Assessment Tax Return

Tax Question

In 2017/18 my client worked via their Limited Company and the contract was within the Public Sector so have been subject to the off payroll rules. When I complete his Self Assessment Tax Return I shall include the P60 details on the Employment page (as issued by the Public Authority). He has also paid out a dividend in respect of the income received from this contract, will he need to declare that on the return?

Tax Answer

The payments that have been made by the Public Sector fee payer have been already been subject to PAYE and will be shown on the Employment page, either taken from the P45 or P60 dependent on when the contract ceased. As the deemed direct payment (DDP) received under the contract has already been subjected to tax and NIC at source then a tax free dividend up to the total of the DDP may be made, this does not have to be declared on the Self Assessment Tax Return.

For further guidance on this can be found on the .Gov website at:

https://www.gov.uk/guidance/off-payroll-working-in-the-public-sector-personal-service-companies