I am having an argument with HMRC! A client registered for self assessment as they were starting self employment. they then met with me and the business was incorporated. Initially, the profits will be low and there will be no salary or dividends for a couple of years. So I asked HMRC to take the taxpayer out of self assessment. HMRC refuse to quoting their manual SIM100050. I understand that this is just their interpretation rather than the law. but what can I do to persuade HMRC that they are wrong? doing a tax return will take less than one hour, but it is the principle of the matter. SIM100050 says:
DIR - other than exempt directors. There are some directorships where tax returns do not need to be completed for the reason of the directorship alone. Provided that their tax affairs do not otherwise require completion, returns will not be required from directors of companies which are set up for charitable purposes, or that are neither profit making nor trading and that do not make payments in any way or provide any company benefits for the directors.
Directors of Community Amateur Sports Clubs (CASC)
Directors of companies set up by tenants to manage freeholds
Nominal directorships (for example school governors)
Where they otherwise qualify to do so, based on other income and amounts, relevant directors can complete a Short Tax Return (SA200) rather than a Main Tax Return (SA100)