Q.4 Is a self-assessment return required if a director receives no income?
My son is a co-director of a property company owned by my wife. He has no income from this company other than a monthly refund of his loan account. He works full-time paying tax through the PAYE system. I am receiving conflicting advice for self-assessment purposes. Does he need to complete an annual self-assessment return?
Arthur Weller replies:
HMRC’s position used to be that a director had to submit a self-assessment return simply because they were a director, even if they received no income from the company. However, HMRC changed their position, and now no longer require a director who receives no income from the company to submit a self-assessment return. See HMRC’s Agent Update 69 and the tax case Symes v Revenue and Customs [2018] UKFTT 42 (TC).
Is a Self-Assessment Return Required If a Director Receives No Income?
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