Do Directors really have to do self assessment returns? read What happened to a Property Company Director Reply

The official guidance for Directors is…

As a director of a limited company, you must:

You don’t need to register for Self Assessment or send a tax return if your company is a non-profit organisation (for example, a charity) and you didn’t get any pay or benefits, like a company car.

So, basically, if you are a director you must register!

Many accountants think that this one size fits all approach is a little over the top and returns for salaried directors are unnecessary in some cases but the rules are absolutely clear, Directors must register!

So the latest case involving a property company came as a surprise to many accountants

Mohammed Salem Kadhem (case TC05929) became a director of a property company on 21 May 2014. He received no pay or dividends from that company and didn’t register for self-assessment.

It was reported in full at

Basically HMRC made mistakes in their approach to the case basically arguing that a notice to file had been sent but were unable to prove the notice was sent and Mohammed Salem Kadhem won.

The tribunal accepted that he had a reasonable excuse for filing a late return and all the penalties were quashed.

This doesn’t change the fact that all directors must register and a file self assessment returns. Don’t risk it, its better to file returns!

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