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Do directors have to automatically file a tax return?

NewbieNewbie Well-KnownRegistered Posts: 229

Comments

  • readerreader Experienced Mentor MAAT, AAT Licensed Accountant Posts: 1,042
    Was an interesting thread, on the face of it, it seems HMRC expect directors to register for (Form SA1, tick the "I became a director box") and submit an income tax return.

    However, legally, it appears that there is no actual legislation that demands that directors register for and file income tax returns.

    Given HMRC expect directors to register for and file a file a tax return, personally, that's exactly what I would advise a client.
  • cheapaccountingcheapaccounting Feels At Home Registered Posts: 77
    No they do not have to automatically file one - even thought he HMRC web site says that they do. We have the same debate every year UK Business Forums. I'll have to see if I can dig out the actual legislation.

    However I have to say that I do see many accountants follow a belt and braces approach and get a self assessment filed for the directors.
  • deanshepherddeanshepherd Font Of All Knowledge Registered Posts: 1,809
    However I have to say that I do see many accountants follow a belt and braces approach and get a self assessment filed for the directors.

    It's all good fee income!

    ;)
  • cheapaccountingcheapaccounting Feels At Home Registered Posts: 77
    It's all good fee income!

    ;)

    That's as maybe but I think a client may be a wee bit annoyed if they had to pay for something that they really did not need to do. #justsaying
  • readerreader Experienced Mentor MAAT, AAT Licensed Accountant Posts: 1,042
    I recently incorporated and when I called HMRC informing them that I'm a company director and need to file an income tax return they asked me if the limited company was going to pay me a salary or any benefits, I said no as I'm currently on another payroll and would therefore take any profits out as dividends. They said that this is investment income and I may not need to file a tax return and that I should contact them when I take a dividend so that they can re-assess my situation.

    So even though I'm a director HMRC don't want me to file a tax return.
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