Self Assessment tax returns

[saeed123]

Hi all,
just confused with Self Assessment tax returns .

I am a diarector of just one company and taking monthly diarector salary from the company, registred on paye aswell . company was in loss in the last two year .

my doubt is do i need to submit Self Assessment tax returns ?

Many thanks in advance.

[zimba]

Yes, all registered directors must file self-assessment even if they do not owe any taxes. Ask your accountant for more details.

[samaygrg]

Hi all,
just confused with Self Assessment tax returns .

I am a diarector of just one company and taking monthly diarector salary from the company, registred on paye aswell . company was in loss in the last two year .

my doubt is do i need to submit Self Assessment tax returns ?

Many thanks in advance.

Yes, you do.

[Meesha]

My accountant told me that i am not required to do the self assesment as a director of a company. Is that wrong?

[Mrchaany]

Director of the company will only do if he is other income like self empoyement or income is more then £100000
It is not mandatory to be register for self assessment.

[samaygrg]

My accountant told me that i am not required to do the self assesment as a director of a company. Is that wrong?

Check this link out.
https://www.gov.uk/self-assessment-tax- ... tax-return

[zimba]

Highly recommended to do so. File zeros if you have to. This will avoid further headaches and issues with HO

[seasky]

Any director must. Period.

Here is the HMRC guidance and to clarify it is OR not AND among the criteria

You’ll need to send a tax return if, in the last tax year:

you were self-employed - you can deduct allowable expenses
you got £2,500 or more in untaxed income, for example from renting out a property or savings and investments - contact the helpline if it was less than £2,500
your savings or investment income was £10,000 or more before tax
you made profits from selling things like shares, a second home or other chargeable assets and need to pay Capital Gains Tax
you were a company director - unless it was for a non-profit organisation (such as a charity) and you didn’t get any pay or benefits, like a company car
your income (or your partner’s) was over £50,000 and one of you claimed Child Benefit
you had income from abroad that you needed to pay tax on
you lived abroad and had a UK income
you got dividends from shares and you’re a higher or additional rate taxpayer - but if you don’t need to send a return for any other reason, contact the helpline instead
your income was over £100,000
you were a trustee of a trust or registered pension scheme
you had a P800 from HMRC saying you didn’t pay enough tax last year - and you didn’t pay what you owe through your tax code or with a voluntary payment

[saeed123]

Many Thanks to all.

[shan101]

My accountant told me that i am not required to do the self assesment as a director of a company. Is that wrong?

As a director of a company you should get registered for self assessment as soon as possible if your are not already registered.Most of the accountants do so automatically and submit it accordingly. However, paying a tax is another criteria which depends on director salary, any other income, dividends etc.

[samaygrg]

My accountant told me that i am not required to do the self assesment as a director of a company. Is that wrong?

As a director of a company you should get registered for self assessment as soon as possible if your are not already registered.Most of the accountants do so automatically and submit it accordingly. However, paying a tax is another criteria which depends on director salary, any other income, dividends etc.

Agreed.

[saeed123]

hi zimba ,

i spoke to the accountant and he said i will get a big fine as i didnt submit the self assessment in the last 3 years and i missed this year aswell .any idea how do i sort this

i am director of just one company since july 2013 and i take monthly salary and paying tax and Ni.
any suggesssions please

Many thanks

[zimba]

Register for self-assessment first of all. Then with the help of your accountant file all the late assessments.
To see how much penalty you have to pay, see: https://www.gov.uk/estimate-self-assessment-penalties

[samaygrg]

hi zimba ,

i spoke to the accountant and he said i will get a big fine as i didnt submit the self assessment in the last 3 years and i missed this year aswell .any idea how do i sort this

i am director of just one company since july 2013 and i take monthly salary and paying tax and Ni.
any suggesssions please

Many thanks

As far as I am aware of the penalties are for those who were already registered but missed to return on time. Talk to the tax advisor, in my opinion you should be fine as you came to know about this fact just now.

[Meesha]

Hi All,

"you were a company director - unless it was for a non-profit organisation (such as a charity) and you didn’t get any pay or benefits, like a company car"

I am not claiming any salary or benefits from company. DO i still need to do self assessment.
Cheers

[sm12]

Hi All,

"you were a company director - unless it was for a non-profit organisation (such as a charity) and you didn’t get any pay or benefits, like a company car"

I am not claiming any salary or benefits from company. DO i still need to do self assessment.
Cheers

Yes, you need to unless you meet both the criteria- i.e. non-profit organisation and no pay/benefits.

[saeed123]

Register for self-assessment first of all. Then with the help of your accountant file all the late assessments.
To see how much penalty you have to pay, see: https://www.gov.uk/estimate-self-assessment-penalties

Thank you Zimba 88

[saeed123]

hi zimba ,

i spoke to the accountant and he said i will get a big fine as i didnt submit the self assessment in the last 3 years and i missed this year aswell .any idea how do i sort this

i am director of just one company since july 2013 and i take monthly salary and paying tax and Ni.
any suggesssions please

Many thanks

As far as I am aware of the penalties are for those who were already registered but missed to return on time. Talk to the tax advisor, in my opinion you should be fine as you came to know about this fact just now.

@samaygrg .
Hope so .. trying to sort ASAP.

[hina_pirzada]

There is no specific requirement in TMA 1970 for a director to register for self assessment if there is no further tax liability for the year and buried within HMRC’s Manuals at EM4551, there is some further guidance:
“There is no requirement to notify chargeability where there is no liability to Income Tax or Capital Gains Tax or where sufficient tax has been deducted at source to meet the net liability for the year.”
There is no exception to this for directors.

Therefore, if a director of a company has no further tax liability for a tax year AND no self assessment tax return has been issued by HMRC, then there is NO requirement for the director to notify chargeability OR file a tax return with HMRC for the year in question.

If HMRC try to insist that a return is due in these circumstances, you should refer them to TMA 1970, s7 and their own manual at reference EM4551.

[zimba]

If HMRC try to insist that a return is due in these circumstances, you should refer them to TMA 1970, s7 and their own manual at reference EM4551.

I am quite aware of that but this might not be that clear to CWs at HO.
You can file self assessment on HMRC website under 5 mins instead of potentially being refused ILR and paying a solicitor for JR and spending 1.5 year battling with HO about nothing.
To me the cost of such a situation (if it ever arises) is FAR MORE than filing zeros in 5 minutes online every year I prefer to be safe than sorry and I suggest that to fellow directors