Reply to: Self Assessment

[realityhack]

I am with Giant powerhouse, and get dividends around 2200 a month. I am a shareholder I think and not a director does anyone know if I need to fill in a tax return as Giant told me you only need to fill one in if they send you. How do I calculate if I am in the higher tax bracket or if I owe any additional tax on my dividends. I am a bit panicky as have been with giant over a year and half so not sure if I will get in trouble with the IR

Giant Powerhouse is an umbrella scheme and AFAIK you need not worry about tax returns, they take care of it for you - but you should look to leave this arrangement before April as I believe Powerhouse is covered by the impending MSC legislation. Have a search on this board for more info.

Edit: Then again, re-reading what I've written that's bollox, ignore me, listen to the others instead. Bit distracted by 'shenanigans' here at work at the mo. However - I'd get away from Giant anyway as they're a bunch of @rse. (Oh, and you can challenge me on that if you like, legal chaps)

[malvolio]

i haven't completed one since i started my business and i'm a director. I've been in touch with my accountant but i've had no respons as yet.

If you are a director you have to complete an annual tax return. It's not an option, it's the law. Or is your business so bad you take no income from it?

Time for a new accountant perhaps? You may have a slight problem...

[AZZIK]

I am with Giant powerhouse, and get dividends around 2200 a month. I am a shareholder I think and not a director does anyone know if I need to fill in a tax return as Giant told me you only need to fill one in if they send you. How do I calculate if I am in the higher tax bracket or if I owe any additional tax on my dividends. I am a bit panicky as have been with giant over a year and half so not sure if I will get in trouble with the IR

[Lucifer Box]

Pondlife is spot on and this is confirmed by Nixon Williams in a thread in 'Accounting'. Someone there is also maintaining that because they haven't been sent a tax return / don't owe any tax they don't need to do one. This is wrong. If you are a company director and/or have untaxed earnings (or losses) you must complete an SA return regardless of whether you think you owe any tax or not.

And as someone else pointed out, from this year onwards you can be fined even if you owe no tax. It's only fair.

[Pondlife]

AFAIK and mentioned by LB, it is YOUR responsibility to notify the IR if your situation changes i.e. you become a company director. If you don't owe any tax they may well send you a letter stating that no more SAs are required (unless your situation changes again).

[ASB]

spoke to my accountant he says that becasue I have no personal tax liability then I don't have to complete a self assessment; it's academic.

If I had personal TAX liabilities then he would have told me to complete a self assessment from.

Obviously you refer to additional tax liability. And he is right. But if you owe as much as 1p you will find it could turn out a very expensive process.

If you are a 40% tax payer the chances of you owing some tax (e.g. on the few pence interest you receive on a current account?) is high.

Not submitting a return is a dangerous strategy. Also I recall there was an upcoming change which does allow penalties for failure to submit a return even when no tax is owing - but whether it actually made it into the finance act I don't know.

[philip@wellwoodhoyle]

HMRC don't always sent SA returns to all directors - we've many directors who don't do them for the reason that they have no untaxed income and aren't due for higher rate tax. The late filing penalty is always waived to nil if there is no outstanding tax liability as at the filing date. Sounds fair enough to me not to do one if you don't have a liability and aren't sent one.

[Lucifer Box]

It is true that it is your responsibility to ask for one, not HMRC's to send you one. Your accountant sounds clueless by the way.

[AtW]

The above quoted text makes it pretty clear that Directors have to submit tax returns, whether they have or have not extra tax liabilities is of no importance.

[liveforever]

those

fixed fines are to catch people who submit their forms a day late.

Only use £20 notes, they should get back to work then; tramps

[AtW]

You have to submit it because you a director. The fact that IR did not send you it makes no difference whatsoever, just like the fact that you do not have any extra tax obligations. I think penalties for late tax returns can't exceed actual tax liabilities (or double that number?) but NL created those fixed fine for being late (£100?) and I don't think it matters even if you have no tax liabilities after you get that fine.

In any case this is the wrong forum to ask such question - most people on here are retired contractors who generally light up cigs using £20 notes.

[DimPrawn]

Best way. Keep a low profile and don't go looking for (tax) trouble.

[liveforever]

I know

Thast what i read over the weekend and started to think i'd forgot to complete something important. But if HMRC don't send me a self assessment one and I have no personal TAX liability then I don't need to chase them/submit one. No penalties can be imposed because there is no TAX to pay.

Why complete paperwork when you don't have to, i mean i will if they call me but i aint calling them.

[foritisme]

From HMRC's website

We need a Tax Return each year if you


work for yourself - that is, you are self-employed, or in partnership (we will also require Partnership Tax Returns)
are a company director
are a Name or member of Lloyd’s
are a Minister of Religion (of any faith or denomination)
have income from letting any property or land you own (but if you are an employee and this income is less than £2,500 a year a Tax Return may not be necessary)
receive other untaxed income and the tax due on it cannot be collected through a PAYE tax code
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
have taxable foreign income, even if you are claiming that you are not normally resident in the UK (and including non-resident landlords)


PAYE puppets are generally excused !

[DimPrawn]

No personal tax. Sounds good. Where do I sign?