After several recent tribunal cases on the subject HMRC have amended its guidance about whether a director has to file a tax return.

The guidance now states that where all of a director’s income is taxed at source and there is no further tax to pay, they do not have to register for and file a self-assessment return.

As many company directors are taxed under PAYE they will not need to give notice of liability to tax.

If they have received a notice to file a return and have no other taxable income to report, they can ask for the notice to file to be withdrawn. If however HMRC decide that they still require a return then one must be submitted or late filing penalties may be due.

Links to our guides:

Do I need to file a tax return? (Directors)
Do you need to file a self assessment tax return? What if you are a director? Can HMRC make directors file tax returns? 

Do I have to file a tax return? 
A guide setting out when you should  file a self-assessment return if you are not a director.

S8(1) Notice to file a tax return
What are the implications of a notice sent to an individual under s8(1) TMA 1970 to file a tax return?

Late filing Penalties
Guide to when penalties are due and how much they are.

How to appeal a tax penalty 
Step by step guide to ensure that you appeal all the right things

External links:

HMRC: Self Assessment tax returns

Comments (2)

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Is there a date when HMRC amended their guidance?

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This comment was minimized by the moderator on the site

It was in their Agent update on 12 December 2018 and their guidance was amended on the same date.

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