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Dividends, self assessment and expenses



New Member
Hi everyone, apologies for the noob question, but google isn’t playing ball.

So my wife and I (mainly my wife) have a business, which has been running a few years. She was mainly working on it part time along with her job so to keep things simple and as it wasn’t a lot of money we were paying her through PAYE and just taking the 2k untaxed dividends each.

Now she’s gone full time, so as of this April I’ve switched her to a salary of 12,570 (I know, probably should have gone for under the NI threshold, but we live and learn) and we’re going to be be paying her roughly 40k in dividends for our business year (roughly 31k for the April financial year).

So obviously we’re going to have to do a self assessment and pay tax on those dividends. My question is how expenses come into play - she’ll do roughly 20k business miles.

All examples I see are for self employed (not business directors). Are expenses such as mileage allowance deductible against dividend income? Also how far can you backdate as we have some unclaimed miles from last year.

Thanks a lot in advance,