Does a directorship with no income need to be included on self-assessment tax return?
A client is in full time employment (elsewhere) but is also a director.shareholder of a small company that has not made any profits yet, and from which there was absolutely no intention of taking a salary, and no other employees, a PAYE scheme has not been registered.
HMR&C are now insisting on a tax return being filed, and saying that we were wrong not to include the directorship on the previous return with nil income.
My understanding is that an employment without a PAYE reference number cannot be returned under self-assessment, and in any case where does it say that you have to return zero income (no doubt I will be proved wrong and it does say so somewhere!)?
If we follow the logic being put forward, everyone who is an officer of a charity should be declaring there zero income on a tax return, and if they don't have a tax return for any other reason they have to request one.
Could someone clarify the situation please? Thanks.
- Newsletter 230 5
- RTI Filing 1,744 22
- Would this save hours of your time? 63 1
- Wrong career 54 1
- Fee's for P11D's 289 5
- Agent with HMRC 236 10
- Quarterly PAYE 210 7
- Producing graphical KPI's etc 41 1
- reporting salary? 167 3
- Payroll software : RTI submissions 316 16
- CGT on Inherited Property 270 2
- Employment Allowance related companies 91 3
- Value pricing 579 19
- One man Company and closing payroll scheme as none paid 383 1
- Childcare Vouchers 171 3
- Audit Report Query 185 5
- Coming in from the cold 218 2
- What password safe app does anyone recommend? 1,308 26
- VAT Query re: Foreign VAT 95 1
- Should design costs be capitalised? 136 3
- Residential Property Purchase Above £750K 768
- Using Sage with Sofa Categories 522
- Does anyone have an unwanted ICAEW wooden plaque? 390
- Goods shipped inter EU and VAT Reporting 273
- Non-Resident Director - UK Tax Position? 216
- Sage 200 and Access Dimensions reviews 216
- Director Loan account operation 204
- transferring simply accounting 2010 from xp to windows 7 203
- vat return 166
- Free Tax Legislation? 165