Directors requirement to register for SA

Not so much a question as a note of a new FTT case

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I know that the issue of whether or not a director HAS to register for SA if that is the only reason and there is no tax liability has been done to death, and in any event has changed somewhat since 6 April 2016 and the new dividend rules, but here is another case where the FTT has ruled other than has generally been accepted here - Macdonald v HMRC TC05246

The FTT give the background as:

"6. Miss Macdonald was appointed a Director of The Bruce Macdonald Ltd (a restaurant business) on 20 July 2009.  In consequence of becoming a director, Miss Macdonald had a statutory obligation to notify HMRC by 5 October 2010 of her requirement to complete an SA return under s7 of the Taxes Management Act 1970 (‘TMA’), as amended by Sch 41 to the Finance Act 2008.

7. It was not until 12 April 2013 that Miss Macdonald registered with HMRC; hence the time limit for the s7 TMA requirement was breached by over 30 months."

There's no indication as to whether there was any actual liability in any year and noone challenged tohe premis that s7 requires a director to register for SA solely because they are a director so it's unsatifactory, and sets no precedent anyway, but is another unhelpful case until the point is argued.

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By Paul D Utherone
25th Jul 2016 08:58

Ooo that looks a bit wierd, but you get the gist

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Replying to Paul D Utherone:
Tom Herbert
By Tom Herbert
25th Jul 2016 09:13

Hi Paul,

Thanks for posting. I've tried to tinker with the format to make it look less weird - hope that helps.

The pull quote function doesn't seem to work particularly well on Any answers. Will raise it with our IT bods.

Cheers,

Tom

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RLI
By lionofludesch
25th Jul 2016 09:47

Well, at least we now know the precise legislation to which HMRC refer.

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Replying to lionofludesch:
By Paul D Utherone
25th Jul 2016 09:55

Well I may be wrong, but I think that's the tribunal stating the view or perhaps they're taking HMRC's statement of case as fact. Still a shame that noone said "where does it say any such thing in s7 TMA?"

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RLI
By lionofludesch
25th Jul 2016 10:18

FA2008 s41 is about offshore funds.

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Replying to lionofludesch:
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By Portia Nina Levin
25th Jul 2016 10:39

It is FA 2008, Schedule 41 (penalties for failure to notify, etc) which has amended TMA 1970, section 7. Nonetheless, the tribunal do appear to have accepted HMRC's version of events, which is not entirely surprising, given that the appellant did not turn up.

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