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Do i need to complete a tax return if i'm a director?

My Co-director, has another job and his pay is through the PAYE and fully taxed. He then receives a small dividend and no wage from our company. Total dividend and wage from other job are under the high rate tax. He has been told by an accountant that he has to file a SA return even though he hasn't recieved notification to file. 

I don't think this is correct. I was under the impression that HMRC will always say you have to but in legislation there is nothing to say you have to as long as all tax has been paid, which it would have been in this case. 

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I think everybody should do one!

It's such fun!

But you're right.  You have an obligation to notify chargeability to Income Tax by 5 October following a tax year, and if you're issued with a notice to deliver a Tax return, then you're obliged to complete one.

Otherwise there's no general obligation to file a Tax Return, even if you are a company director, that's just an HMRC myth that people who call themselves accountants either don't realise is just a myth or go along with, because then they can charge a fee.

Like I say though, it is fun!

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Yes- SA is for everybody

He has to file in SA100 even though he is under the PAYE system in the other job, as the dividend is paid net tax and he is also an higher rate tax payer, he might have made gift aid donation to UK charities under ther gift aid scheme, pension contribution arrangement with some financial insitution, which you might not be aware of,  for tax relief by extending his basic rate band. He might be due some tax refund on the donations and pension contribution, provided he has evidence in effect to prove that payments were made to the UK charities and contributed to PS.

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where does it say he is

a higher rate taxpayer?

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That's what it say high rate meaning higher rate not additional or basic rate.

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Quod Erat Demonstrandum...

... I think.

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RTQ

"Total dividend and wage from other job are under the high rate tax."

And in answer to the question as posed; no if there is no liability and HMRC have not required a return for a year there is nothing in legislation that requires a director to register for HMRC

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it does indeedy

but as usual we dont have the figures so are all urinating in the airflow

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problem I have ...

... new client, I didn't form the company. Year end just passed and my first involvement. He is the artistic type, so admin not a forte. He tells me he has nothing from HMRC regarding personal tax, but thinks he did a CT41.

Without a UTR I can't get online authorisation to find out if he needs a UTR.

My understanding is you only have to volunteer a tax return if there is tax to pay, you may wish to if there are reliefs/losses to claim, but you must complete one if requested regardless. As to directors, HMRC generally request one, but the don't have to.

 

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I agree with George Attazder as his post is bang on.

High Rate tax payers need to file a return but simply being a Director

doesnt automatically require you to do a return unless you have been asked to.

If one has been issued and you dont submit it even if nil tax to pay you will

be subject to HMRC penalty regime.

The guy is not 40% tax payer so need to file a return for sake of it.

 

 

 

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