HMRC has updated its guidance regarding the requirement for directors to file self-assessment tax returns.
It has been the case for some time that all directors were required to register for self-assessment. However, following a recent decision by the First Tier Tax Tribunal HMRC have changed their guidance.
The amended guidance states that directors who are taxed under PAYE and have no further tax to pay are not required to submit a self-assessment tax return. Directors in receipt of other income, such as dividends or rents, will still be required to file.
A return must also be filed if HMRC issue a notice, however depending on the circumstances it may be possible to approach HMRC to request that the notice is withdrawn.
For more information, please contact Lesley Sutton on 01484 550037 or email firstname.lastname@example.org.