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Tax return company director

Hi

Earlier this year set up an ill advised ltd company ( of which I was the sole director ) to exploit an idea which turned out to be a non starter, company was dormant for two months, never started trading. Applied for Voluntary Strike Off and the company was removed in October. Copied HMRC on all paperwork throughout the process.

As I was the director of a dormant company for all of a few months, will I still be required to complete a tax return? I do work full time not high earner and all tax through PAYE.

Much appreciated

Iggie

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By taxguru
17th Jan 2013 08:02

If you haven't received a 'notice' to file a tax return' from HMRC you do NOT need to file a tax return. 

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By iggie
17th Jan 2013 08:39

Thank you for that. Please excuse my ignorance but I assumed that you would need to have registered for self assessment ( which I haven't done ) in order for HMRC to send you out a notice to file. Do they automatically send out a notice to those they want a return from even if not registered for self assessment? Just want to clarify for own peace of mind. And can you tell me if HMRC would automatically update my records to reflect the fact I am no longer a company director based on the notice of voluntary striking off I passed them or would I need to send them anything else?

Appreciate the time, thanks again

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By taxguru
17th Jan 2013 08:49

You need to 'notify' HMRC of chargeability in certain situations; your situation (simply being a director of a company) is not one of those.

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By Old Greying Accountant
17th Jan 2013 09:03

To complete the picture ...

... when a company starts trading HMRC should be informed, part of that process is letting them know the details of the directors and then they take a view and will generally set up a SA record for each director. This used to be done on a paper form but is now done online and I have yet to complete one online so can't be more exact.

 

 

 

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17th Jan 2013 10:08

How many more times?

This question has been done to death.  A search would have turned up numerous threads.

Taxguru is right.  There is no legal requirement to notify chargeability to tax under s.7 TMA 1970 just because you are a director.  It is standard HMRC policy to issue tax returns to directors, but if one has not been issued, you have no obligation to submit one.

End of story.

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By JAADAMS
18th Jan 2013 15:47

Hold on...

.. yes Euan is right when he says that 'there is no legal requirement'  - this is the stance that accountants take looking at the actual Act.

HOWEVER.... HMRC do not apparently agree.

Please look at my latest article which covered the HMRC webinar given only last week on Company Directors and in particular my comment at the end.

  http://www.accountingweb.co.uk/article/company-directors-your-responsibilities-hmrc/535684 

In the webinar it clearly states that a return is required and goes on to say detail what you have to do to get a UTR etc etc.

Following the webinar I emailed the head of the Digital Team and actually directed him to comments that Euan has previously made on the subject and to the relevant section of the Act..

The only response received so far is as follows:

 Our writing team when preparing a presentation send it off for technical sign off before we unleash it on the public. I contacted the writer of the presentation and asked him to consult with our technical people & I will come back to you with a response 

... that was received on the 9th - I'm still waiting... 

Jennifer Adams

Associate Editor

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17th Jan 2013 15:35

HMRC do not apparently agree

JAADAMS wrote:
HOWEVER.... HMRC do not apparently agree.

HMRC may hold any such opinion they like and frequently do, however if they are attempting to support a position which has no statutory basis, then they are on a hiding to nothing.

HMRC are free to issue a self assessment tax return to anyone, for any reason at any time. However, their contention that Company Directors must submit a self assessment tax return purely because of their role as an officer of the company, simply does not bare scrutiny.

For myself, I would prefer that HMRC be honest.

HMRC policy / procedure doth not a statute make.

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17th Jan 2013 17:20

I remember

a long time ago I had a communication from Customs ( as it then was) that 'it was not the Departments Policy to allow this claim' My response was 'that just because it is the Departments policy neither makes it lawful nor what Parliament intended.'

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17th Jan 2013 17:00

Once upon a time . . .
A gentleman on state benefits became a director of a company, but received no remuneration or dividends. When the DWP found out he was interviewed and charged with the criminal offence of failing to notify the DWP of a change in his circumstances.
He was duly convicted but the conviction was quashed by the court of appeal on the grounds that the change was not one which affected his entitlement to state benefits - despite evidence from the DWP that they would like to have been informed of the appointment in case it might have triggered further enquiries!
In practice there may be a large number of directors / company secretaries who receive no remuneration for that office.
David

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