Self assessment return

susan87 · 16 March 2018 at 10:01AM

This isn't about cutting tax but was hoping somebody would know/be able to help.

Last year I was listed as a very small % director on my partner's company and got a tiny income through it. It's all been undone now as we are now divorced, so this will be the only time I need to file a self assessment return...but do I need to?

The dividends were under £500, and the self assessment page says you need to do it if income from dividends was 10k or more before tax. The salary was just about 1k and the tax was already paid via PAYE.

If I understand correctly - I don't have to do anything at all given the low figures, correct?

Thank you!

agrinnall · 16 March 2018 at 10:04AM

Have you been asked by HMRC to file? If you have then you must do it (unless you can persuade them to withdraw the demand), but I believe otherwise you are correct, and you don't have to file.

badmemory · 16 March 2018 at 12:03PM

If you have been asked to then you must file.

You could ring them (before 8 is most likely not just to have low wait time but also someone who knows what they are doing) and ask - if they say no you don't need to file ask them to put it in writing. Keep filing until they put it in writing whatever your income source.

polymaff · 16 March 2018 at 1:27PM

You do not have to file just because you are/were a director - despite what HMRC say.

You do have to ensure that you pay the right amount of tax.

Sometimes filing is the simplest way to put the ball firmly into HMRC's court. (No mucking around on the phone, no dodgy advice, all documented)

Providing you file correctly.

susan87 · 16 March 2018 at 1:31PM

I haven't been asked - I was just trying to figure out what my obligations are so I can do things properly. On the salary, I paid the tax via PAYE, and on the 500 dividends, it's under the threshold, so as far as I am aware, there is no tax left to pay. If I don't have to file at all then, that's great.

TheCyclingProgrammer · 16 March 2018 at 1:40PM

So long as you haven't received a notice to file a tax return for 17/18 (the deadline has passed for both notifying and filing for that tax year anyway) then as pointed out above there's no obligation to notify HMRC because you were a director and yes the dividends are covered by the £5k dividend allowance so no tax is due.

If the dividends were in the current tax year, the same advice applies but you wouldn't have received a notice to file a tax return for this tax year yet anyway...not until next month at least. So keep an eye out. If you don't get one, you're all good. If you do get one then you can *try* and convince HMRC to rescind the notice or simply file it (it won't take long).

Self assessment return

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