Shareholders Tax Return

[degenerationx]

Hi,

Will a shareholder in a limited company automatically be sent a notification to complete a tax return?
Or do we need to notify HMRC ourselves?

 

[Mr D]

Its one or the other. They do not appear to require every single shareholder to complete annual tax returns every year.

If you do receive dividends and haven't been asked to complete a return you can contact them to do so.

 

[Scalloway]

If you are sent a request by HMRC to complete a tax return you must send one in. If you have income, such as dividends, that has not been taxed then you must inform HMRC and complete a tax return.

 

[degenerationx]

Thanks for your responses. I'm really worried now - I should explain the context of my question above: We set up our business 5 years ago. I have always completed Tax Returns through my accountant and draw most of my earning through dividends. My business partner does the opposite. We are currently drawing our dividends for the year and my accountant in passing mentioned that he couldn't remember who does my business partners' tax returns. We have never done a tax return for my business partner and both of us are very worried. I stupidly assumed HMRC would request a tax return from my business partner as they would have sight of the fact he draws dividends.
On looking at the HMRC website it says shareholders have to complete tax returns too.
I'm not sure where to go from here. It may be he didn't have to pay any extra tax in the first few years of trading as his total income would not have taken him into the higher tax rate threshold
Any advice would be helpful

 

[Newchodge]

Thanks for your responses. I'm really worried now - I should explain the context of my question above: We set up our business 5 years ago. I have always completed Tax Returns through my accountant and draw most of my earning through dividends. My business partner does the opposite. We are currently drawing our dividends for the year and my accountant in passing mentioned that he couldn't remember who does my business partners' tax returns. We have never done a tax return for my business partner and both of us are very worried. I stupidly assumed HMRC would request a tax return from my business partner as they would have sight of the fact he draws dividends.
On looking at the HMRC website it says shareholders have to complete tax returns too.
I'm not sure where to go from here. It may be he didn't have to pay any extra tax in the first few years of trading as his total income would not have taken him into the higher tax rate threshold
Any advice would be helpful

Either remind them that they need to complete a tax return or mind your own business. It is your business partner's affair and nothing to do with you or the company.

 

[Mr D]

Thanks for your responses. I'm really worried now - I should explain the context of my question above: We set up our business 5 years ago. I have always completed Tax Returns through my accountant and draw most of my earning through dividends. My business partner does the opposite. We are currently drawing our dividends for the year and my accountant in passing mentioned that he couldn't remember who does my business partners' tax returns. We have never done a tax return for my business partner and both of us are very worried. I stupidly assumed HMRC would request a tax return from my business partner as they would have sight of the fact he draws dividends.
On looking at the HMRC website it says shareholders have to complete tax returns too.
I'm not sure where to go from here. It may be he didn't have to pay any extra tax in the first few years of trading as his total income would not have taken him into the higher tax rate threshold
Any advice would be helpful

Dividends are taxable. First 2 grand currently is tax free per year.
But as Cyndy says it's his affairs not yours.

 

[MyAccountantOnline]

Hi,

Will a shareholder in a limited company automatically be sent a notification to complete a tax return?
...

No

...do we need to notify HMRC ourselves?

If one is needed yes you do. You can do it online here

 

[MyAccountantOnline]

Thanks for your responses. I'm really worried now - I should explain the context of my question above: We set up our business 5 years ago. I have always completed Tax Returns through my accountant and draw most of my earning through dividends. My business partner does the opposite. We are currently drawing our dividends for the year and my accountant in passing mentioned that he couldn't remember who does my business partners' tax returns. We have never done a tax return for my business partner and both of us are very worried. I stupidly assumed HMRC would request a tax return from my business partner as they would have sight of the fact he draws dividends.
On looking at the HMRC website it says shareholders have to complete tax returns too.
I'm not sure where to go from here. It may be he didn't have to pay any extra tax in the first few years of trading as his total income would not have taken him into the higher tax rate threshold
Any advice would be helpful

As you've got an accountant already they will be able to help. I'd suggest your business partner contacts your accountant to get this sorted asap. Your business partner wont be the first or last to have done this.

 

[degenerationx]

Thank you so much everyone for your advice