HM Revenue & Customs drops insistence that all company directors must submit tax returns

HM Revenue & Customs (HMRC) has dropped its insistence that all company directors must submit tax returns following a series of tribunal rulings.

For several years, HMRC has advised in its guidance on the gov.uk website that company directors should register for Self-Assessment and this has also been part of online tools designed to help individuals determine whether they need to submit a tax return.

However, the requirement is not enshrined in law and has been repeatedly contradicted by tribunal rulings.

HMRC now says directors are not required to file Self-Assessment tax returns if they have been taxed under PAYE and do not need to pay tax on other income.

However, if HMRC issues a notice to file a Self-Assessment tax return, a director must do so, unless a request to HMRC to withdraw the notice is accepted. HMRC is not obliged to withdraw the notice, even if there is no tax to pay.

Guidance on the gov.uk website has now been updated to reflect HMRC’s new position.

Link: HMRC changes guidance for directors’ returns

Loading Quotes...

Latest News

6
Feb
Automatic Enrolment contributions to increase

The next increase in Automatic Enrolment (AE) pension contributions for both …
Read more…


6
Feb
Payroll sector prepares for key changes in 2019/20

The next 12 months will see a number of new changes to payroll policy that could …
Read more…


Register for our newswire

Our regular Newswire mailings are designed to keep you up to date with the latest industry news and events.

Register here

Client Login
Complete our Client
Satisfaction Survey

Autumn Budget 2018

The sun was already edging behind the London skyline by the time Chancellor Philip Hammond...

Read full our summary