Personal Tax Return needed?

[chrisl]

With the new fines for self assessment, what would you do?

Company was incorporated before 6 April 2011, so technically they were a director in the 2010/11 tax year.
However, didnt actually start working and invoicing until after 6 April 2011 so no money was receievd in 2010/11.

As a director they are strictly required to complete a Tax Return however they didnt start working until the 2011/12 year, so what would you do?

Fines are now up to £1,600 which is the problem whereas in previous years, it would have been nil if no tax was due.

Would you complete one or not?

[TheFaQQer]

Would you complete one or not?

Yes.

"They" were a director in the year, so why risk "them" getting a fine? What difference does it really make?

[chrisl]

I think i may have answered my own question as the SA102 notes relating to the employment page state:

We need an Employment page for each directorship, with one exception.
This is where no payments of any kind (including lump sums and
‘deemed payments’ – see below) have been made and no benefits have
been provided from that directorship.

Therefore, from this it seems one will not be needed assuming nothing went through the company before 6 April.

[Clare@InTouch]

Give HMRC a call - if an SA1 (notification of self assessment) was sent when the company was set up then HMRC may be expecting a return for that year. If so, even though technically they don't NEED one, it might be easier to file one than argue the penalty later on. Especially if it's a simple return that just requires employment income to be declared. Alternatively they will tell you you don't need one, in which case at least you're sure!