Summary
Dividend income from a company of which the appellant was director and sole shareholder, which was paid in part to the appellant’s partner, was taxable on the appellant (under ITTOIA 2005, s 385), and errors in the disclosure of the dividends in the appellant’s tax returns were careless for penalty purposes.
Background
The appellant engaged an agent to assist in setting up a limited company, through which the appellant would work as an ‘interim’ or ‘locum’ in the engineering sector.
The appellant had understood that two shares were issued upon the company’s formation, but only one share was issued. In addition, the appellant confirmed to his agent that one share each should be issued to him and his partner (Ms H). However, the company’s annual returns submitted to Companies House for 2001 and subsequent
