Do I have to register for Self assesment

Jem8472

I am just wondering if I have to register for self assessment or if it is an automatic process.

I, with 3 members of my family, started a ltd company to start selling a book. We have done well so far with it but always hoping to expand a bit.

I am one of the four directors and I am not sure if I need to register for self assessment. So far I am not looking to take any money out of the business as there is not enough to take anything and keep the books in order. This is just a side venture I have a full time employed job.

I can't seem to find the answer. Any help would be great.

Thanks.

chrismac1

Regardless of what else is posted in this thread the answer is NO. On various Government sites including HMRC's you'll find a strong suggestion that all company directors must. Most HMRC staff seem to operate under this illusion.

It is wrong. The HMRC site does not make the law. There is nothing in the Taxes Management Act or any other acts requiring it. This has been tested out on here and other sites when HMRC shills and others who believe the HMRC site have asserted that it is a requirement.

When put to the test - quote me the part of the Act which says it is so - they all collapse in a heap. So if anyone reading this wishes to assert that a company director must register, quote the law please in this thread.

In which case, roughly 40 of my clients will need to register pronto!

Savvy_Sue

Having said that, because you have a full-time job, I believe you WILL need to register once you have taxable income from the book, because HMRC will want you to pay tax on that income.

And, as you've started a ltd co, do you have an accountant? It is usually recommended because you do need to keep on top of the legal requirements of a company: filing accounts in a particular format, dealing with dividends (if any) etc.

Jem8472

Yes we do have an accountant but I thought it might be more costly to contact him before the people on here

WHA

Savvy_Sue wrote: »

Having said that, because you have a full-time job, I believe you WILL need to register once you have taxable income from the book, because HMRC will want you to pay tax on that income.

Only if it results in a tax liability. If it's just dividends and you remain under the higher rate threshold, or if you're paid via payroll and tax is deducted under PAYE, then there'd be no outstanding liability, so no requirement to register for self assessment. As said above, there is no law requiring directors to register. The law is just that you have to register if you have untaxed income or are liable to higher rate. Of course, if HMRC tell you to do, you have to complete a tax return, but there's no law compelling you to register or submit tax returns otherwise.

Jem8472

Thanks all for putting my mind at ease.

I just saw something about self assessment in a newspaper I was printing last night and it got me thinking if I should be doing one.

Jem

InsideInsurance

Jem8472 wrote: »

Thanks all for putting my mind at ease.

I just saw something about self assessment in a newspaper I was printing last night and it got me thinking if I should be doing one.

Jem

Whats your arrangement with your accountant? Most people pay a flat annual fee for a package of services which would include directors self assessments where necessary.

There is no "harm" doing a self assessment even if you strictly dont have to. I know when I had my small business (Sole trader) and was a PAYE employee too I was always getting a rebate via self assessment despite my business making a small profit each year.

Savvy_Sue

InsideInsurance wrote: »

Whats your arrangement with your accountant? Most people pay a flat annual fee for a package of services which would include directors self assessments where necessary.

And also a certain amount of 'just checking' phone calls ... surely?

zygurat789

Jem8472 wrote: »

I am just wondering if I have to register for self assessment or if it is an automatic process.

I, with 3 members of my family, started a ltd company to start selling a book. We have done well so far with it but always hoping to expand a bit.

I am one of the four directors and I am not sure if I need to register for self assessment. So far I am not looking to take any money out of the business as there is not enough to take anything and keep the books in order. This is just a side venture I have a full time employed job.

I can't seem to find the answer. Any help would be great.

Thanks.

I think the question is should I register for self assessment, it would certtainly be prudent to do so but the final descision should be with your accountant. He should know all your income from all sources and advise accordingly.
What you don't want is a big unexpected bill for unpaid back tax.

agrinnall

How many copies of this book do you expect to sell, and how much profit do you think you might make? Setting up a limited company seems a bit over the top to sell one book.

chrismac1

Some of the advice on here is utter drivel, zygurat is a regular offender. Far from being prudent to do so, registering for SA when not required is just pure stupid. Whether you do it yourself or hire someone else, you are exposing yourself to the full fining and mucking-up regime of HMRC.

"Fine first and ask questions later." Along with your local council with regard to parking and speeding tickets, HMRC are totally obsessed with finding ever more ways to fine taxpayers.

You already have this risk with the corporation tax, which has additional State fines from Companies House if you file late or not in the right format. Why anyone would want to volunteer for a new series of potential fines is beyond me.

Why anyone would actually advise someone to do so is just plain Dumb with a capital D.