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a notice to file a return and have no other taxable income to report, they can ask for the notice to file to be withdrawn.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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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.

This comment was minimized by the moderator on the site

Is there a date when HMRC amended their guidance?

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