Updated HMRC guidance on company directors and tax returns

TheCyclingProgrammer

The question of whether or not company director's have to submit a tax return has come up on here numerous times over the years, largely due to misleading HMRC guidance.

It seems that HMRC have finally got the message that company director's have no legal obligation to file a tax return unless they have some form of chargeable income that has not been taxed at source:

https://www.accountingweb.co.uk/tax/hmrc-policy/hmrc-changes-guidance-for-directors-returns

:j

polymaff

Now all of that needs to seep down through HMRC.


Don't hold your breath

TheCyclingProgrammer

polymaff wrote: »

Now all of that needs to seep down through HMRC.

Well I tried out their updated "Do I need to submit a tax return?" interactive help thing earlier and it does indeed now say you are not required to submit a tax return if you answer "Yes" to being a company director and "no" to anything else regarding any taxed income, capital gains etc.

It's a start! It should also mean that anyone receiving a notice to file a return who has no untaxed income to report simply because they are a company director should - in theory - be able to ask HMRC to withdraw it.

polymaff

Mind you, I wonder just how many directors don't have return-triggering income?

Pennywise

polymaff wrote: »

Mind you, I wonder just how many directors don't have return-triggering income?

Very few now that dividends in excess of the paltry £2000 will trigger a tax liability and therefore a SA return.

Typical HMRC to finally accept their previous "guidance" was wrong at a time when it no longer really matters, except to a small number without dividends.

polymaff

Exactly