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.
- Sage import sales invoices with due dates 76 2
- Xero - Should I partner with them 414 8
- HP VAT with flat rate scheme 113 1
- Director needs to withdraw 45k lump sum from company 454 7
- Micro entity accounts - cessation of trade 82 1
- Spellcheckers 162 1
- What is IRIS World like? 139 3
- How long to process paper 64-8 (SA)? 279 5
- Sage Bank rec 104 1
- ERS reporting - online filing 250 7
- Is business bank account compulsory for all businesses? 122 1
- Transferring debts between company balance sheets. 139 6
- Small Company sold building, how to show in accounts 219 6
- Contract Hire Van, reclaiming input VAT 213 2
- Just for fun. 1,258 46
- Directors Share Purchase 336 14
- Xero Training 151 1
- Landlord possible penalties for late registration for self assessment 386 13
- Is interest still due? 325 8
- Dividend Waiver 166 3
- Has anyone been affected by the RBS payment breakdown? 396
- Straight line write off of Purchase Goodwill ??? 373
- Self Assessment - What to enter on the return 354
- Perkbox 330
- FRS 102 compliant illustrative accounts for an insurance company 278
- Document Management Systems 268
- WIP Software 258
- CGT, PPR and transfer of equity to spouse. 193
- Nomisma feedback? 184
- No payroll scheme in place 184