Income Tax Return for Spouse

[xoggoth]

This should help you decide whether she needs to get on the annual treadmill or not

No. HMRC website guidance on this as, one some other things, is totally wrong. You fill in a tax return if you may have an additional tax liability or they send you a form. That's it.

Tax returns for directors | AccountingWEB
Self-assessment | AccountingWEB

Similarly with registering with PAYE if a director. It is quite clear from their guidance that one should register even if not receiving salary or benefits but an accountant told me different and that view was confirmed by their online advisors. I wasted time registering my wife's businesss and then had to waste time ringing up to get the registration cancelled.

PS My advice is to always record conversations with HMRC helpline, insurance companies or anything else that may have future repercussions.

[MickeyP]

No. HMRC website guidance on this as, one some other things, is totally wrong. You fill in a tax return if you may have an additional tax liability or they send you a form. That's it.

Tax returns for directors | AccountingWEB
Self-assessment | AccountingWEB

Similarly with registering with PAYE if a director. It is quite clear from their guidance that one should register even if not receiving salary or benefits but an accountant told me different and that view was confirmed by their online advisors. I wasted time registering my wife's businesss and then had to waste time ringing up to get the registration cancelled.

PS My advice is to always record conversations with HMRC helpline, insurance companies or anything else that may have future repercussions.

So, as I suspected, we are in a grey area here. Different accountants offering different advice. I guess one can either take the advice or leave it. It seems a whole load of pain to start getting SA for the missus for no reason though!

[tractor]

So, as I suspected, we are in a grey area here. Different accountants offering different advice. I guess one can either take the advice or leave it. It seems a whole load of pain to start getting SA for the missus for no reason though!

I would say

"If you don't already complete a tax return, you'll need to do so if you receive any of the following:

•£10,000 or more income from savings and investments
•£2,500 or more income from untaxed savings and investments
•£10,000 or more income from property (before deducting allowable expenses)
•£2,500 or more income from property (after deducting allowable expenses)
•annual trust or settlement income on which tax is still due (even if you’re only treated as receiving this income)
•income from the estate of a deceased person on which tax is still due"

...is quite clear and unambiguous and yes, many people in the UK should but don't fill in an SA form annually. That is irrelevant though, according to the above guideline.

As the op stated "nominal dividends@10% through the year", if those nominal dividends are greater than the prescribed £10k, then the person is required to self assess.

[Clare@InTouch]

So, as I suspected, we are in a grey area here. Different accountants offering different advice. I guess one can either take the advice or leave it. It seems a whole load of pain to start getting SA for the missus for no reason though!

The HMRC guidance does not fully reflect company law which is why you get differing opinions. Some will say to complete a tax return anyway as it saves arguing with HMRC at a later date (when their own staff likely don't know the difference between their guidance and the actual law) and some will tell you not to bother as it's not legally necessary.

[simondolan]

The HMRC guidance does not fully reflect company law which is why you get differing opinions. Some will say to complete a tax return anyway as it saves arguing with HMRC at a later date (when their own staff likely don't know the difference between their guidance and the actual law) and some will tell you not to bother as it's not legally necessary.

Are you suggesting Clare that our friends at the Revenue sometimes give conflicting advice? Whatever next........

[Clare@InTouch]

Are you suggesting Clare that our friends at the Revenue sometimes give conflicting advice? Whatever next........

Terrible isn't it, it's almost as if their own staff can't be trusted to know the rules

[simondolan]

Terrible isn't it, it's almost as if their own staff can't be trusted to know the rules

[xoggoth]

Phone up? I have always found their telephone support staff, unlike whoever writes their websites, to know their stuff.