UK Accounting for unpaid/owed salary in self assessment for startup director

[RobertB]

Hi,

I'm the director (sole founder) of small startup (ltd company) and I'm unclear about when I should declare salary in my self assessment.

My accounts for 2021-2022 show that I paid myself a minimal salary of £6240 (below threshold for PAYE or tax) and the end of year journal shows that coming from the director's loan account (so the actual money is effectively owed to me when the company can afford it in the future).

I'm looking at doing my self assessment and unsure whether I should be declaring this as a salary now, or should I be waiting until I effectively pay some amount of this from profits in the future? (since I haven't actually personally received any salary in my own current account)

I guess I should put the £6240 of salary in my self assessment for this year even though I haven't received that money yet?

Thanks for any help,
Best Regards,
- Robert

 

[TDRTax]

Once the salary is credited to your DLA it is deemed to have been paid, and should be accounted for as received at that date, and so yes, you will show it on your 2021/22 Return.

 

[RobertB]

Thanks for confirming that - it makes sense.