No Tax Return Issued...

No Tax Return Issued...

Didn't find your answer?

Hi.

I have some directors of limited companies that have a UTR and appear on my HMRC online services client list, but they have not been sent a notice to submit a tax return.

Therefore, in this instance should I still preapare and submit a tax return.

They have no income additional income other than salary from the company and dividends, which are more than within the relevant bands and thresholds resulting in no further tax liability.

Any advice would be greatly appreciated.

Regards

a_m

Replies (6)

Please login or register to join the discussion.

Time for change
By Time for change
24th Nov 2011 16:05

Your HMRC online services

should say, if a return has been issued, subsequent to 6 April 2011.

If the comment is along the lines of "we haven't issued a notice to produce a return" or similar then, in those circumstances, it seems to me that you are not obliged to complete and submit a return.

However, if the HMRC service is stating that a return has been issued then, whether your client has received a notice, or not, I believe you are obliged to complete and file a return to avoid the late filing penalty. Many notices seem to go missing between HMRC and client's and, those that seem to do, are often to the most reliable of client's.

Thanks (0)
Euan's picture
By Euan MacLennan
24th Nov 2011 16:04

If ...

... you have established on SA Online that no tax return has been sent to the client for 2010/11 and there would be no additional higher rate tax to pay, there is no requirement to submit a tax return.

Thanks (0)
avatar
By tonycourt
24th Nov 2011 16:07

Not unless you want to

 There's no mandatory requirement for a director to submit a tax return any more than there is for any other taxpayer. So, if as you say they have no tax liability then it's up to you and them whether you submit one.

I wouldn't bother, but I would keep a record of the clients' income etc and tax calculation on file to back up the decision not to submit a return form.

I suspect it won't be long before the Taxman decides to bring your clients within the SA net so it shouldn't be a dilemma next time round.

Thanks (0)
avatar
By tonycourt
24th Nov 2011 16:12

Just had another thought:

If your clients have a UTR they will almost certainly be within the SA system - that makes it unlikely that a notice to file a return hasn't been sent to them. Rather than argue the toss later you should ask HMRC whether they have issued one. In fact the directors' online record should show whether HMRC are expecting one.

 

 

Thanks (0)
Chris M
By mr. mischief
24th Nov 2011 17:10

agreed

I am checking the online records very carefully this year, now that penalties can be applied even if no tax is due.

Thanks (0)
avatar
By DMGbus
25th Nov 2011 08:52

Keep copy of online service SA page

In these circumstances, having accessed the client's SA record online I would keep a pdf copy of the HMRC webpage that says that "no SA return has been issued".

 

 

Thanks (0)