Self Assessment as Director

[ramholio]

Hi chaps,

In March I registered a company through the Giant trailblazer scheme which as we all know now went tits up and never became anything.

I am getting round to trying to cancel the whole thing, (noticed now that Giant have taken off the link on their site to cancel it for you :@ ) however as I am now technically a director I received notification that I would need to fill in a self assessment tax return. This turned up this morning (for 2006-2007.)

I called up HMRC to say that the company is not and has not ever traded and the chap seemed to suggest that If I wrote to my local HMRC in the North West explaining this I would not have to fill in the Self Assessment after all.

Does the latter sound correct?

I only question it because the SA says I am legally obliged to fill it in.

[philip@wellwoodhoyle]

Usually once a return has been issued they will want it completing, but there's no harm writing in to ask not to - just make sure you get a written reply and keep it so that they can't fine you next year!

But, remember you do have to complete a SA return if you have untaxed income, capital gains or are liable to tax at higher rates. So if you were with the likes of Giant previously and received dividends, make sure that there isn't higher rate tax on the dividends (if total income over say £35k per year). If you don't send one in when you should do, regardless of whether they ask or not, you are liable to fines and interest.

[ramholio]

Usually once a return has been issued they will want it completing, but there's no harm writing in to ask not to - just make sure you get a written reply and keep it so that they can't fine you next year!

But, remember you do have to complete a SA return if you have untaxed income, capital gains or are liable to tax at higher rates. So if you were with the likes of Giant previously and received dividends, make sure that there isn't higher rate tax on the dividends (if total income over say £35k per year). If you don't send one in when you should do, regardless of whether they ask or not, you are liable to fines and interest.

Thank you for your very informative reply

I definitely don't earn enough for tax on dividends, and don't have any other incomes so I think it must have just been the 'director' thing that flagged it up.