HMRC Self assessment: Self employed AND a Director?

[RichardinDorset]

Silly question:

I am self employed in a one man LTD company.

When filling out the HMRC Self assessment online, do I delcare myself as a Director as well as being self employed or not?

Does it matter?

I assume that the Director declaration is for non-self employed Directors of larger companies and declaring yourself Self-employed by default means you are the Director...

 

[RichardinDorset]

On further reading, maybe I should actually declare myself as an Employee and Director and NOT Self Employed, even though I am the only employee, as it's a LTD company.

I am registered for PAYE.

This question seems to come up quite a bit and I've seen different answers...

 

[cheaper accountant]

On further reading, maybe I should actually declare myself as an Employee and Director and NOT Self Employed, even though I am the only employee, as it's a LTD company.

This is correct. Take a read of this, which might help.

 

[faradaykeynes]

You are employee of your company and only director as well, you would need to file your self assessment which is not same as being self employed. Being self employed means you run another business (at least 10 hours a week) along side your Ltd company.

 

[RichardinDorset]

Cheers, C.A.

It seems obvious when you think about it, but have read quite a lot of contradictory stuff on the net!

 

[David Griffiths]

This is correct. Take a read of this, which might help.

It might help if it was correct. In fact there is no need to file a self assessment tax return just because you are a company director.

If HMRC actually issue a return, then one must be completed. If they don't nothing needs to be done. Of course there may be other reasons why you have to notify HMRC that you are chargeable for income tax, but simply being a company director is not one of them.

 

[MyAccountantOnline]

Silly question:

I am self employed in a one man LTD company.

When filling out the HMRC Self assessment online, do I delcare myself as a Director as well as being self employed or not?

Does it matter?

I assume that the Director declaration is for non-self employed Directors of larger companies and declaring yourself Self-employed by default means you are the Director...

It can be confusing but as a company director you are employed not self employed.

If you've drawn a salary from your company you show that as income from employment.

You may also perhaps have some benefits to declare and maybe dividends?

Your tax return must basically show all of your personal income for the tax year.

 

[cheaper accountant]

It might help if it was correct. In fact there is no need to file a self assessment tax return just because you are a company director.

If HMRC actually issue a return, then one must be completed. If they don't nothing needs to be done. Of course there may be other reasons why you have to notify HMRC that you are chargeable for income tax, but simply being a company director is not one of them.

With the upmost respect David. The article was written with anyone who does need to actually submit a return in mind; as in the case of the OP. The article picks up on HMRC guidance here: http://www.hmrc.gov.uk/sa/need-tax-return.htm but your point is noted and can be added to the article to give further clarification.

 

[David Griffiths]

With the upmost respect David. The article was written with anyone who does need to actually submit a return in mind; as in the case of the OP. The article picks up on HMRC guidance here: http://www.hmrc.gov.uk/sa/need-tax-return.htm but your point is noted and can be added to the article to give further clarification.

How did I know that was coming back? That's the problem with relying on the HMRC site for tax information - it is categorically wrong on that matter. There are other areas where it is wrong as well and more where the opinion given on things is HMRC's skewed opinon and which other people disagree. If HMRC was always right, it wouldn'tlose any tax cases.

The HMRC site is not the law. The relevant law in this instance is the Taxes Management Act 1970. That Act sets out the circumstances when an individual is required to notify HMRC that a tax return is required. There is nothing the the TMA to require a person to notify HMRC that a self assessment return is required simply by virtue of the fact that they are a company director.

It used to be common HMRC practice to issue a tax return to all company directors. They are quite entitled to issue a form to anybody, and once it's been issued it must be completed. However, they discontinued that practice a few years ago.

So I am not wrong. Your article is.