UK Tax Questions? Ask a UK Tax Advisor for answers ASAP
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I can answer this without the need for a phone call.
As a director, you should strictly complete an annual self-assessment tax return. You should have registered for self-assessment when you became a company director. However, if you register now, that may trigger the issue of tax returns from 2010/11 to date and late filing penalties of up to £1,600 per tax year, though if the company is dormant and you've drawn no income, an appeal against such penalties would have a high chance of success in the current climate. I know of many directors who are basic rate taxpayers and who don't complete annual tax returns. They may need to from the end of the current tax year, however, due to the new dividend tax on basic rate taxpayers. You are not self-employed. You might also consider closing the company if you don't envisage using it in future.
I hope this helps but let me know if you have any further questions.
If it were me, I'd register but I cannot tell you what to do as that is something you will need to decide for yourself. If I wasn't going to use the company again, I'd close it.
You can register for self-assessment using a form SA1. It might help to explain that appart form 2010/111, you have had no income form the company as it has been dormant. HMRC now use a case by case approach. I've appealed many £1,600 penalties with success, especially if no tax is due. Class 3 NIC is voluntary and was originally introduced to allow non-working housewives to build up state pension entitlement. You only pay Class 1 employee and employer NIC if you earn over £156 per week. You won't get credit for state pension unless you earn over £112 per week as an employee or director.
It would be prudent to explain how you have lived since 2010/11, ie as a house husband.
If penalties are issued, then you can appeal against them using the form 370 which you can find a link to here. The form is very easy to complete.
I am not allowed to take on private work through this site I'm afraid.
I'm not allowed to recommend anybody either. Google "tax accountants" in your area.
See 4 here. You cannot pay more than the sums shown.
You can get an instant state pension forecast here. You will probably need to use the verify service.
To get the maximum basic state pension, you need 35 years of contributions or deemed contributions if your PAYE earnings are below the threshold at which you pay Class 1 NIC but above the threshold below which you get no state pension credits.
There's no harm in giving your reasoning for not completing a tax return.
You can keep this question open as long as you like. If you want to ask a question on a different topic, then you can start a new one and ask for me if you want me to answer it.
If you are paying Class 1, you don't pay Class 3, unless you want to fill in gaps in your contribution record. If you earn no more than £112 per week, you won't pay any Class 1 employee NIC and won't get any credit for state pension. If you earn over £155 per week, you will pay Class 1 employee NIC on the excess. If you earn between the two thresholds, you won't pay any Class 1 employee NIC but you will get credits towards your state pension. Read about Class 3 NIC here. I suggest you write to HMRC and get them to tell you what you can do to fill in any gaps.
If you have children and are claiming child benefit, you'll get credit towards state pension. Look here for more information.
I have to go out for a while but will be back a bit later to answer any follow up questions that you may have.
You'd have to ask just answer if this is visible on the internet. In any event, it is anonymous.
I cannot say whether you you will be asked to complete tax returns for the 2010/11 up to date let alone whether HMRC will issue penalties. Given that you clearly owe no tax, I'd be surprised if they did. I'd also be surprised if appeals weren't successful.
You are right that there is some argument. However, if you look here and fill in the boxes, it will tell you that you need to register. I know people who wouldn't bother registrering.
There can be as they are not tax related.
I'm just following up to find out if my answer helped or if you have any further questions.
Yes it is, for the 2011 tax return onwards.
If you have a UTR, you don't need to register again.
Your self-assessment is separate from corporation tax. I don't see any need to add your SA account to the CT account on the government gateway.
It won't cause any problems. I guess it will add it to the list of available services when you login to the main HMRC site. I've always had all the services I need from when I first registered.
Hi.I'm just following up to find out if my answer helped or if you have any further questions.