Greetings,
I have incorporated my small Ltd company in 2006 and started becoming profitable only recently, although turnover is still very small.
As sole director shareholder I always paid myself via dividends and am not receiving a salary. I paid Corporation Tax every year regularly, my FI ends 31 May.
I have never received a 'notice to deliver a tax return' from HMRC, and hence don't know whether I should register for Self Assessment and file SA tax return or not.
I know there is plenty of debate online over statutory legislation pertaining to this issue versus what HMRC's website says about it.
Any help would be much appreciated.
Regards,
S.
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Replies (9)
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Hmm
HMRC like to say that directors should be registered for self assessment but it is not true in law.
Your post begs too many questions:-
Why have you not taken a salary?
Are you also in receipt of a pension?
If not what about your NI history?
How did you take dividends if the company was not profitable?
Frankly find a local accountant you can work with..
Chris Smail
No requirement
"I have never received a 'notice to deliver a tax return' from HMRC, and hence don't know whether I should register for Self Assessment and file SA tax return or not."
If HMRC wanted you to file a tax return, they would have sent you a Notice. Otherwise, there is no legal requirement to notify HMRC just because you became a director. You only have to "register for self-assessment" if you have any non-PAYE tax to pay - which is only likely to apply if your total income puts you into the higher rate tax band.
Further details...
Hello everyone and thanks for the prompt replies.
Basically, I am my own accountant for the time being, hence forgive my naivety in handling this, not knowing whether paying myself a salary would have been any more appropriate than having dividends appearing on the company's balance-sheet.
Dividends were taken below 30K during current FI and used as source of income to live. Having moved to the UK in 2006 I did manage to live off personal funds before the company began trading, and received my NI only last year (2012).
At present I do not receive any other dividends elsewhere, don't have any other capital-gains on investments, or regular PAYE or other source of income.
Clearly I am conflicted whether to call HMRC and update them on this before they think I did not report it purposely, or indeed wait for them to issue a 'notice to deliver a tax return'.
What exactly are you 'conflicted about'?
Re read Euan's post.
In short if you had gone to an accountant earlier you would probably have paid less corporation tax.
No more DIY Accountancy, indeed, thanks for the clear advice, which I will surely follow. At this point, I am only concerned about whether I should start calling HMRC in regards of this year's Self Assessment in light of "I have never received a notice to deliver a tax return" for previous dividends, or considering to do this in the future, in accordance to what at this point may be the most convenient scheme applicable for my case.
It's quite simple. You are
It's quite simple. You are obliged to compete a tax return for any year when either of the following applies:
HMRC issue you with a notice to complete a return;when you have an unpaid tax liability not covered by tax deducted (or deemed to have been deducted) at source.
If you cannot work out for yourself which years the 2nd of those requirements applies for get an accountant to work it out for you.
That's all there is to it.
Thanks!
Thanks a lot to everyone! This surely provided me with reasonable understanding of the current situation, and hopefully will help other people out there looking for similar answers. Great forum!
SA SUBMISSION?
Straight forward question if a person is a Director and posts dividends on CT return surely ther is no call to further submit a Self Assesment?