Do Company Directors have to file a Tax Return?

16th August 2017

 

 

The First-Tier Tribunal recently decided that HM Revenue & Customs were wrong to assume that all Company Directors are required to complete a Self Assessment Tax Return (Mohammed Salem Kadhem v HMRC).

The taxpayer appealed against HMRC penalties for failing to submit his Tax Return because he owed no tax – the only source of income being his salary with tax deducted under PAYE.  Although he was a Company Director he had not been issued with a Tax Return to complete.

While HMRC relied on their guidance which stated you will need to send a Tax Return if you were a Company Director, the Tribunal found that this did not accurately reflect the law.

So in what circumstances must you file a Tax Return?  A Tax Return must be submitted to HMRC if you have been sent a Tax Return in the post or you have received a “notice to file” letter.

If you have any tax to pay for the year ended 5 April 2017 and you have not been issued with a Tax Return, HMRC must be notified by 5 October 2017.  They may then decide to issue a Tax Return or arrange for tax to be coded out through PAYE.

As in this case, if HMRC haven’t asked you for a Tax Return and you have no income on which you have any further tax to pay, then you are not required to file a Tax Return.

Other items in Blogs
Ruth Pearson
23rd June 2022 Changes to National Insurance

In April 2022 we saw Employee’s National Insurance Contributions increase by 1.25% from 12% to 13.25%, as part of the Governments Health and Social Care levy. Employer’s National insurance also increased from 13.8% to 15%. From April 2023, the health and social care levy will be paid separately to National Insurance and become a tax…

James Selby
23rd June 2022 Pensions Contributions: Maximise tax relief

We are seeing more and more cases of individuals missing out on claiming higher rate tax relief on their employee pension contributions especially where they are not in self-assessment and required to file tax returns.   Where employers have enrolled their staff to make employees pension contributions via a ‘relief at source’ scheme, the contributions…

Paul Jefferson
14th June 2022 VAT Penalty Changes

A new penalty regime will come into effect for VAT periods starting on or after 1 January 2023. The changes will impact the charges for missing VAT filing and payment deadlines and will be replacing the current surcharge system. These changes place continued importance on being up to date with your VAT returns, aware of…

Liz Simpson
13th June 2022 NIC: All Change!

HMRC Changes to the National Insurance contributions for 2022-2023 tax year, are you confused? Due to the COVID-19 strain on the NHS, the government announced that they would be increasing the National Insurance contributions by 1.25% as a means to increase spending on health and social care. The Health and Social Care Levy was applied…

Jaimie King
10th June 2022 30-Jun-22: Covid Recovery loan deadline approaching

Time is running out for businesses to apply for Recovery Loans, the follow on Covid-support product from the CBILS.   In order to qualify for the Recovery Loan Scheme (RLS), your business has to have been affected by Covid-19 and you have to apply and have received the funds by 30th June 2022. The RLS…

Stephen Malkin
7th June 2022 Virtual Finance Officer: Outsource your book-keeping to us

Following the increase in use of cloud accounting software’s like Xero, QuickBooks and Sage over the past few years, businesses have never been better positioned to look to outsource their accounting function.  For all businesses, getting the accounting function working efficiently can be challenging, as you will need potentially different people with different skills: someone…