Should I be self employed Registered - Please help!!

[vijay2000]

I am the sole share holder with 100 percent shares of a registered limited company and I am applying for Tier 1 based on earnings I made in the company as dividends. I have also submitted my annual returns. and have a letter and accounts from my CA.

I was just told by a friend that I must also be self employed registered and pay National Insurance which I have not been doing so far and only recently registered after I heard this statement.

Could anyone kindly clarify if I must also be self employed registered and have a unique tax reference number.

[John]

I was just told by a friend that I must also be self employed registered and pay National Insurance which I have not been doing so far and only recently registered after I heard this statement.

That is total rubbish. From the tax/NI point of view you are not self-employed.

Any salary you take from your company will be subject to Class 1 NICs. You tell us about dividends, but what about salary from your company?

[vijay2000]

I never drew a salary. It was always dividends transfered from my business account to my personal account from time to time as per my ca advised me after going through my numbers.

[John]

I express surprise at that. I say that because the first £110 per week ....
£5720 for a full year ... is subject to NI at the rate of 0% .... so why not draw that amount of salary?

Drawing that salary will reduce the amount of Corporation Tax payable by the company.

But vijay2000 you have done what you have done, and as you say, you drew no salary.