Self Assessment advice

Discussion in 'Accounts & Finance' started by Berzerk, Jan 6, 2019.

  1. Berzerk

    Berzerk UKBF Newcomer Free Member

    6 0
    Hi there, first off I just want to say I'm sorry for posting a question which has been discussed a lot, of which I have searched here and the internet and read a lot including the GOV website but there's so much conflicting information out there that it's really hard to figure out what's actually needed.

    So a brief background of the query.

    I started a Limited Company on 25/6/2018 in preparation for a business I wanted to pursue at the same time as being fully employed at another company and paid through PAYE, things has taken a lot longer than imagined to get all the equipment ready and so on so as of yet the company hasn't traded at all, there are zero transactions or money in the company account.

    The plan was to continue my current job and slowly grow the company but leave all the money in there so at the time didn't think I needed to register as self employed or for self assessment.

    I'm fully aware of my Company House duties regarding the companies filings I need to do however I just saw people talking about the self assessment returns due by January 31st so I started looking into this to double check.

    Which is an absolute minefield to say the least, the GOV website says if I'm a director I need to do it but then other internet searches point to court cases where it seemed the GOV advice wasn't accurate and I didn't need to do it unless they requested.

    So where do we stand at this moment in time?

    The current situation is I'm still full time employed paid through PAYE, the company hasn't traded and thus I have no extra income from it so I have nothing extra to be taxed on so do I need to register and file a NIL report just because I'm a director? Or do I just leave it and not register yet?

    As I've had no request from HMRC to file one, how do they contact you? Just through the post to my home address or the Company address?

    I do fully acknowledge the need to hire an accountant which I will do the minute the company is ready to trade however I haven't hired on yet as it wasn't trading so I would appreciate any guidance on this issue while I've still got time before January 31st

    Many thanks
     
    Posted: Jan 6, 2019 By: Berzerk Member since: Nov 3, 2018
    #1
  2. Scalloway

    Scalloway UKBF Legend Free Member

    14,883 3,161
    If HMRC haven't written to you asking for a tax return then you don't need to do one.
     
    Posted: Jan 6, 2019 By: Scalloway Member since: Jun 6, 2010
    #2
  3. Berzerk

    Berzerk UKBF Newcomer Free Member

    6 0
    Well as of right now the only corespondence since starting is obviously the Companies House stuff regarding signing up for Corporation Tax etc which I did, from the council about Business Rates which I was granted 100% relief.

    So I've always dealt with everything I've been approached about.

    The only thing I've received at home from HMRC was my end of year tax report regarding tax paid on my PAYE salary from my main job.

    That's cool then so I'm basically good for the moment?

    Then hopefully I'll be operational in a couple of so by then I will have hired an accountant to deal with anything else
     
    Posted: Jan 6, 2019 By: Berzerk Member since: Nov 3, 2018
    #3
  4. Scalloway

    Scalloway UKBF Legend Free Member

    14,883 3,161
    So it seems.
     
    Posted: Jan 6, 2019 By: Scalloway Member since: Jun 6, 2010
    #4
  5. SteLacca

    SteLacca UKBF Ace Free Member

    1,348 263
    .GOV is woefully incorrect with regards to who must complete a Tax Return. Not a single one of their examples is supported by the legislation.

    NB. Some of the examples may meet a requirement to notify, but that's not the same thing.
     
    Posted: Jan 7, 2019 By: SteLacca Member since: Jun 16, 2016
    #5
  6. TheCyclingProgrammer

    TheCyclingProgrammer UKBF Regular Free Member

    1,060 218
    As above - if you have no reportable untaxed income and HMRC haven't sent you a notice to file a tax return, you have nothing to worry about as far as self assessment is concerned.

    HMRC may pick up on you being a director and send you a notice to file at some point. If they do you'll need to file a return unless you can convince them to withdraw the notice (unlikely but worth a try).
     
    Posted: Jan 7, 2019 By: TheCyclingProgrammer Member since: Jul 15, 2014
    #6
  7. Newchodge

    Newchodge UKBF Big Shot Free Member

    12,058 3,121
    HMRC are not too clever about it either. My partner registered as self employed in January 2018 in anticipation of an expected contract which did not materialise until late April. The contract fell under CIS and deductions have been made, so HMRC is aware that there was self employed income in 2018/19, however his self employed SA return for 2017/18 showed nil. So he received a letter stating that he does not need to produce a return in 2018/19. He obviously will complete a return, but someone with less understanding of the system may well fail to do so.
     
    Posted: Jan 7, 2019 By: Newchodge Member since: Nov 8, 2012
    #7
  8. SteLacca

    SteLacca UKBF Ace Free Member

    1,348 263
    And believe it or not, in the circumstances that you describe, unless HMRC issue a notice under S8, I would happily defend an appeal against any penalties to Tribunal. He has done everything he needs to do under S7, and if HMRC fail to issue a notice under S8, that's their problem.
     
    Posted: Jan 7, 2019 By: SteLacca Member since: Jun 16, 2016
    #8