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I have just started a limited company in the uk and I’ve been contracting my services since jan 1st 2021. Previously I was being paid by an American company. All tax etc. was done in America and I was paid in dollar. My question is: now that I’m back in the UK and will be payed by a British company (my own company that is) do I still not pay income tax on the first £12500 I earn until 1st April? Hence, the best way to pay myself would be to use up my personal allowance until April and only pay NI and then in April start a new dividend / salary split?

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    "Previously I was being paid by an American company. All tax etc. was done in America and I was paid in dollar. My question is: now that I’m back in the UK" Does this mean that you had been living in the US? – RonJohn Jan 25 at 5:53
  • Yes, I did a postdoc at an american university last year - although due to covid I came back early and worked remotely – CiaranWelsh Jan 25 at 11:18
  • It's pretty unclear .. (1) WHO are you now actually working for, is it a US company or? (2) WILL that company pay you gross, or do they deduct (whatever?) taxes ?? – Fattie Jan 25 at 12:22
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    I used to work for the University of Washington as a postdoc. They paid me net, after paying US tax, health insurance etc. I stopped working for them at the end of 2020 and now I have set up my own business. Now I'm wondering whether anything in my situation precludes my ability to take 12.5K personal allowance for tax year April 2020 - April 2021, (after which my allowance resets, right?). – CiaranWelsh Jan 25 at 12:31

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