Directors and Self Assessments


HMRC states that a company director MUST complete a tax return but does this requirement have a basis in law?

The relevant legislation in the form of Taxes Management Act 1970 (TMA) s7 states that it is mandatory for a company director to file a tax return IF a return HAS been issued and IF there is a liability to tax (emphases are ours).

Additionally HMRC manual EM4551 – Penalties: Failure to notify chargeability… – states that there is no requirement to notify chargeability where there is no liability to income tax or capital gains tax or where sufficient tax has been deducted at source to meet the net liability for the year.

No mention is made of directors being special cases and no exceptions are given.

So, essentially, if no return has been issued and there is nothing else income-wise to declare, there is nothing to notify HMRC of and if it tries to insist on a return being missed, the above references should be enough to quote.

About Phoenix

Accountant | Tax Specialist | Quickbooks ProAdvisor Online


No comments yet.

Get in touch

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s


Enter your email address to receive notifications of new posts by email.

Join 1,253 other followers


0044 780 370 4496
0044 207 059 2442

Phoenix Debola is licensed and regulated by AAT to provide services in accordance with licence number 1000701 details of which are displayed at the address shown. AAT is recognised by HM Treasury to supervise compliance with the Money Laundering Regulations and Phoenix Debola Cloud Accountancy Practice is supervised by AAT in this respect.