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.
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