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Company Limited by Guarantee - HMRC

Company Limited by Guarantee - HMRC

I have recently formed a Company Limited by Guarantee and i was wondering (as the HMRC website is that clear) if i could apply for Dispensation:

Our directors do not take a wage and there is no dividend paid to them. The only real expenses that we have is for travel and various promotion expenditure like buying posters and merchindise to sell.

We have only been incorporated for a few days, i've been told that i have to put in a self-assesment tax return this time next year even though i do not take a wage from the company?

Thanks for your help.

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By law man
08th May 2012 16:15

Taxation of company limited by guarantee

Unless the company is a registered charity [it is common for a charity to use a CLBG as a vehicle] then I assume that the company must pay Corporation Tax on trading income and gains (if it has any).

You as an individual are a separate entity: paying income tax and CGT. It is more likely that the HMRC will ask you for an annual Tax Return if you are a company director.

Whether or not you file a personal Tax Return, the company of which you are a director (if you are a director or employee) will apply PAYE to any emoluments paid to you.

What if (1) the company does not pay salary to you, and so (2) you as an individual do not receive income from the company? I have no practical experience, but you could ask HMRC to dispense with an Income tax return for you.

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By Denzil
09th May 2012 08:01

Ok, thanks for your reply.

 

I can confirm that i take no income/wage from the company.

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By Denzil
21st May 2012 08:58

So is it worth trying to put in a Dispensation claim with HMRC?

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