Self Assesment

[ukspeedster]

Hi All,

I started my Ltd company back in February 2013. As the director, I wanted to know if I need to complete a self assessment by 31/01/2015? This will be the first one I will be doing.

I have been told that HMRC will send me a notification to fill in a self assessment. Nothing has been received yet.
Do I wait for the notification or do I need to register for one by myself?
Also, I read that the registration deadline passed in October 2014?? I have an HMRC online account but will need a UTR to complete the return.

Any help would be appreciated.

Thanks in advance.

[Forbes Young]

Hi All,

I started my Ltd company back in February 2013. As the director, I wanted to know if I need to complete a self assessment by 31/01/2015? This will be the first one I will be doing.

I have been told that HMRC will send me a notification to fill in a self assessment. Nothing has been received yet.
Do I wait for the notification or do I need to register for one by myself?
Also, I read that the registration deadline passed in October 2014?? I have an HMRC online account but will need a UTR to complete the return.

Any help would be appreciated.

Thanks in advance.

You must submit a tax return if you were a director at any point in a given tax year. So your first tax return to submit is for the tax y/e 5/4/13 (deadline was 31/1/14) as well as for tax y/e 5/4/14 if you were a director in this tax year. The onus is on you to submit it; not for HMRC to ask you for it. You need to complete an SA1 form to obtain your UTR. Your accountants should have explained all of this to you of course.

[tractor]

...

Hi All,

I started my Ltd company back in February 2013. As the director, I wanted to know if I need to complete a self assessment by 31/01/2015? This will be the first one I will be doing.

I have been told that HMRC will send me a notification to fill in a self assessment. Nothing has been received yet.
Do I wait for the notification or do I need to register for one by myself?
Also, I read that the registration deadline passed in October 2014?? I have an HMRC online account but will need a UTR to complete the return.

Any help would be appreciated.

Thanks in advance.

As with all these things, you can always find an answer on the HMRC web site

[TheCyclingProgrammer]

If you've not received a notification to file a return AND you know you don't have any additional tax to declare, then no, you do not have to submit an SA.

Anything telling you that directors must register for self assessment voluntarily even if they owe no tax is wrong. And that includes the HMRC website. There is no legal requirement. Search the numerous discussions on AccountingWeb and on here if you want more information. Here's just one example:

http://m.accountingweb.co.uk/anyansw...elf-assessment

The question seems to come up a lot on there and here.

As long as you don't have any taxable income to declare that hasn't been taxed at source and HMRC don't request one, you've got nothing to worry about.

HMRC do like directors to submit a SA so you may find yourself receiving a notification to file at some point. Some accountants would also advise registering anyway as a proactive step as you wilk have extra tax to pay if you ever take dividends over the higher rate threshold. That's up to you.

[TheCyclingProgrammer]

As with all these things, you can always find an answer on the HMRC web site

Given how misleading it is, I wouldn't put too much faith in it.

The taxpayer only has a legal obligation to notify HMRC if they are chargeable to tax and complete a SA if HMRC notify you and request one. Nothing more. No tax, no request, no SA.

A shame to see some accountants still getting this wrong.

Of course, if OP does owe tax for the 2013/14 tax year then they have indeed missed the deadline for notifying HMRC but as long as the contact HMRC ASAP and register for self assessment and get it submitted on time there shouldn't be any repercussions.

EDIT: just realised OP started in the 2012/13 tax year. Again, unless they had tax to pay for that year they have nothing to worry about. The deadline is obviously long gone.

[jamesbrown]

If you've not received a notification to file a return AND you know you don't have any additional tax to declare, then no, you do not have to submit an SA.

Anything telling you that directors must register for self assessment voluntarily even if they owe no tax is wrong. And that includes the HMRC website. There is no legal requirement. Search the numerous discussions on AccountingWeb and on here if you want more information.

As long as you don't have any taxable income to declare that hasn't been taxed at source and HMRC don't request one, you've got nothing to worry about.

HMRC do like directors to submit a SA so you may find yourself receiving a notification to file at some point. Some accountants would also advise registering anyway as a proactive step as you wilk have extra tax to pay if you ever take dividends over the higher rate threshold. That's up to you.

Yes, bang on. The obligation is w/r to being chargeable to tax or requested to submit a return. There is no legal requirement to submit a SA as a Director (regardless of how HMRC chooses to interpret the legislation), but I also agree w/ the advice from Forbes Young above in spirit, i.e. from a practical POV.

[TheCyclingProgrammer]

Ybut I also agree w/ the advice from Forbes Young above in spirit, i.e. from a practical POV.

Sure, but I guess the important thing from OPs perspective is that they don't need to worry about the previous two tax years (with the deadline for the previous rapidly approaching) so long as they definitely didn't owe any tax AND they are 100% certain they or their accountant did not receive a notice to file a tax return.

If they wish to register voluntarily for practical reasons, I would do so for the 2014/15 tax year onwards. OP should also make absolutely sure there is nothing else that could have required them to do a tax return in previous years by double checking with their accountant.

[jamesbrown]

Sure, but I guess the important thing from OPs perspective is that they don't need to worry about the previous two tax years (with the deadline for the previous rapidly approaching) so long as they definitely didn't owe any tax AND they are 100% certain they or their accountant did not receive a notice to file a tax return.

Indeed. However, in balancing the legality vs. practicality, I would always err on the side of submitting a return, because: 1) it's straightforward, particularly with no income chargeable to tax; and 2) HMRC have their own interpretation of the legislation, and it's questionable whether it's worth arguing this technical point. That said, your advice is entirely accurate.

[Andrew@Wisteria]

If you've not received a notification to file a return AND you know you don't have any additional tax to declare, then no, you do not have to submit an SA.

Anything telling you that directors must register for self assessment voluntarily even if they owe no tax is wrong. And that includes the HMRC website. There is no legal requirement. Search the numerous discussions on AccountingWeb and on here if you want more information. Here's just one example:

http://m.accountingweb.co.uk/anyansw...elf-assessment

The question seems to come up a lot on there and here.

As long as you don't have any taxable income to declare that hasn't been taxed at source and HMRC don't request one, you've got nothing to worry about.

HMRC do like directors to submit a SA so you may find yourself receiving a notification to file at some point. Some accountants would also advise registering anyway as a proactive step as you wilk have extra tax to pay if you ever take dividends over the higher rate threshold. That's up to you.

I agree with this approach - HMRC's guides are often not necessarily the law.

Furthermore, if you choose to/need to register for self assessment for 2013/14 now, you should actually get 3 months to file the tax return rather than the 31 January 2015 deadline

There is a slight risk you could be penalised for 'failing to notify within 3 months of requirement to file' but I don't think I've ever seen one.