Self assessment for the wife / co secretary ?

[adart]

Switched from an umbrella to ltd co recently, wife is the ltd co secretary, not taking a salary, took < £2000 divis for 2006/07, no other income, has never previously been a higher rate payer or done self assessment.

Do I need to bother with sorting a tax return out for her ?

Or as a ltd co secretary is she now obliged to do one ?
(HMRC website states directors ie does this also mean secretary)

[chicane]

I'm in the same situation and asked my accountant a couple of months ago - he said there's no need for the wife to do a personal tax return (if you did mean a personal tax return).

No idea why - I didn't get as far as asking that.

[Lewis]

Search for personal tax return on the HMRC site and it has a list of circumstances where you must complete one, e.g. higher rate tax payer, receives more than £X in divididends etc..

[mjshrimpton]

Search for personal tax return on the HMRC site and it has a list of circumstances where you must complete one, e.g. higher rate tax payer, receives more than £X in divididends etc..

From

http://www.hmrc.gov.uk/sa/guidelines.htm

"receive annually (or can be treated as receiving) income from a trust or settlement, or any income from the estate of a deceased person, and further tax is due on that income "

So I think that if there is no further tax due on the settlement you made of shares in the company, because your wife receives gross salary and gross dividends lower than higher rate threshold, there is no reason to do self-assessment as there is no further tax to pay.

Pretty unambiguous even for a chastened hector dreaming up ways around all those law abiding citizens who benefitted after the arctic case was kicked out by those qualified to judge on it.

[adart]

That page also says "if you are a company director", this is what prompted me to raise the post. Is the ltd co secretary/wife also a director in HMRCs view ?

[Lewis]

So I think that if there is no further tax due on the settlement you made of shares in the company, because your wife receives gross salary and gross dividends lower than higher rate threshold, there is no reason to do self-assessment as there is no further tax to pay.

I'm not convinced that is always correct, I think anyone who receives more than 10K in dividends must complete one ... from your link, it says ...

"have annual income from savings or investments of £10,000 or more (before tax) "

Dividends count as investments. Only counts for employees though, I assume the OPs wife is not an employee plus <£10K divis anyway. But for people who's wife gets a salary + more than £10K divs I think they need to fill one out.

[NickFitz]

Is the ltd co secretary/wife also a director in HMRCs view ?

No, a company secretary is not automatically a director. If you haven't given her a seat on the board, duly recorded at Companies House, she should be in the clear as far as that bit goes.

[adart]

No, a company secretary is not automatically a director. If you haven't given her a seat on the board, duly recorded at Companies Hosue, she should be in the clear as far as that bit goes.

I think that settles it then thanks.

[mjshrimpton]

Dividends count as investments. Only counts for employees though, I assume the OPs wife is not an employee plus <£10K divis anyway. But for people who's wife gets a salary + more than £10K divs I think they need to fill one out.

Hang on, surely Ordinary Shares in a ltd co are not investments. Especially if they have been gifted.

Might be one for an accountant to answer.

[Lewis]

Hang on, surely Ordinary Shares in a ltd co are not investments. Especially if they have been gifted.

Might be one for an accountant to answer.

Follow the link again and it says Investments = "This is investment income on which you have paid tax. It includes income from UK banks, building societies and deposit takers (including interest from UK Internet accounts). It also includes income from UK dividends. "

It's a pain in the bum bit I think wives with >£10 Divis need to fill in a return.