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Directors Tax returns

Directors Tax returns

Myself ,Euan and others frequently state here that inspite of what HMRC say there is no statutory need to file a SA Return just because you are a director. 

Had the standard letter in from HMRC on two Directors today stating that the 2012 Return is the last one needed unless circumstances change. They are both basic rate taxpayers


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28th Jan 2013 18:41

Just out of interest ...

... Did you remember (I am sure you did) to tick the box in the employment pages of the last tax return confirming their status as director?

We had a clerk last year who kept forgetting to tick the box and not surprisingly HMRC unflagged them for tax returns.  As white lies go, probably worthwhile in the long term scheme of things.

Not absolutely sure, but I suspect that had the box been ticked then tax returns would have continued.

With kind regards

Clint Westwood

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31st Jan 2013 23:13

BR code change....
Just had 2 unrelated clients had their current year 810L tax codes changed to BR....??? One employed.(25k salary) a director (low salary)......?????

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05th Feb 2013 20:01

Still waiting for HMRC reply...

I took time out from doing clients tax returns on 8 Jan to attend one of the HMRC webinars. This was a subject that was covered. HMRC said that directors returns were required but on many occasions you will read in accountingweb that they are not.

I wrote a critique on the webinar (this can be seen if you click on my Tag - Jennifer Adams -and I also emailed a member of HMRC's SME team - here is what I stated in my email:

In the webinar an attendee asked the question as to whether a director needs to submit a personal Tax Return. At the 'live' event the presenters just said 'yes' and did not go into much more explanation. I have also listened to the recorded version since and this question and its answer is now part of the presentation.

The answer given was that a return for a director was required.

HOWEVER>>>> here is a link placed on accountingweb site on this very question and the consensus seems to be that there is no legal ruling that confirms that a return is required unless a Return is one specifically requested by HMRC.

Please could you confirm the situation as you might have to amend your webinar text.

 The correct position is>>>>

s.8 TMA 1970 is the section which says that a person may be required by a notice from HMRC to submit a personal tax return and s.7 is the section which says that every person who is chargeable to income tax or capital gains tax and who has not received a notice from HMRC must notify his chargeability to tax within 6 months of the end of the tax year.

There is no mention of directors in either section and hence, there is no legal basis for any assertion by HMRC that every director must file a tax return. However, they have every right to set their own criteria for issuing notices to file tax returns and they generally choose to issue tax returns to directors, but if they don't, there is no legal requirement to submit a nil return and no penalty can be applied legally for any "failure" to do so. 

>>> I received an acknowledgement to my email but no actual response - I'll try again and let you know.



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By alattax
05th Feb 2013 20:28

The crunch, irrespective of HMRC policy of requiring tax returns for directors, is whether penalties can be charged for not registering/filing as a director per se, assuming there is no other assessable/taxable reason to file.

The prevailing view on this forum is that there would not. 


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05th Feb 2013 20:26

I find it passing strange ...

... that they are on the one hand aware of the threads on accountingweb that discuss this issue and yet remain of the opposing view while at the same time being seeming unable to articulate the justification for that view or the flaws in the reasoning of those whose who have posted on AWeb.  Or perhaps they have just not bothered to read those threads but have read their own website, manuals or other indoctrination.

With kind regards

Clint Westwood

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11th Feb 2013 15:42


I finally received a response from HMRC's SME team. This is what is said:

From the reply I got from our Technical people they are not disagreeing with you.

I think you have pretty much summed up the correct position in your original email.

As you say, HMRC can set their own criteria for issuing returns & our presentation was written based on being a director as criteria for completing a return so our staff assume that every director will get one so that is why they answer the question the way they do.

I have passed on the comments you have made and the Technical response and have asked our team to change the text in the webinar and to be very careful how they answer that question in the future.

I really enjoyed your critique of the webinar.

Thanks again for taking the time to write and I apologise again for the delay in replying.

>>> one up for accountingweb members - well done! - a climb down from HMRC's techie team!


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