UK Tax

UK Tax Questions? Ask a UK Tax Advisor for answers ASAP

Ask an Expert,
Get an Answer ASAP!

UK Tax

Can I ask about tax disclosure question?

Customer Question
Hi, Can I ask about...
Hi, Can I ask about tax disclosure question?
Submitted: 1 year ago.Category: UK Tax
Show More
Show Less
Ask Your Own UK Tax Question
Answered in 2 minutes by:
8/22/2016
UK Tax Professional: Tony Tax, Tax Consultant replied 1 year ago
Tony Tax
Tony Tax, Tax Consultant
Category: UK Tax
Satisfied Customers: 15,960
Experience: Inc Tax, CGT, Corp Tax, IHT, VAT.
Verified

What is your question?

Ask Your Own UK Tax Question
Customer reply replied 1 year ago
I set up a limited Company in 2010. I am the only director. Through the company I did a consultancy work for an IT company and earned 5710 in the financial year 2010-2011. Since then, I have no further earning. I submitted for the company corporation tax return myself every year since 2010 since the company is more or less dormant. Due to the fact that the amount was below the personal allowance, I did not submit a personal tax return. Am I considered as self-employed and should have submitted the tax return? If yes, what is the worst case penalty for failing to declare self-employed status and submit the tax return?
Many Thanks.
Customer reply replied 1 year ago
Posted by JustAnswer at customer's request) Hello. I would like to request the following Expert Service(s) from you: Live Phone Call. Let me know if you need more information, or send me the service offer(s) so we can proceed.
Customer reply replied 1 year ago
Sorry, pressed call me button by accident. Could you kindly answer through text?
UK Tax Professional: Tony Tax, Tax Consultant replied 1 year ago

I can answer this without the need for a phone call.

Ask Your Own UK Tax Question
Customer reply replied 1 year ago
Many Thanks.
UK Tax Professional: Tony Tax, Tax Consultant replied 1 year ago

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.

Ask Your Own UK Tax Question
Customer reply replied 1 year ago
Should I register now and should I just closed the company?
UK Tax Professional: Tony Tax, Tax Consultant replied 1 year ago

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.

Ask Your Own UK Tax Question
Customer reply replied 1 year ago
Many Thanks. I understand. So the registration is for self-assessment as a director and not self-employed? Is that a form for this registration or shall I write a letter. Also should I just register and wait for them to ask questions? Or shall I disclosure the full history in order to minimize the possible penalties?The company only traded once in 2010 and has not traded since and the fact that the income is below my personal allowance, would it make it a stronger case to minimize the penalties received. With regard to the penalties, does HMRC use a "by the book" approach or do they use a case-by-case approach?
Customer reply replied 1 year ago
Also I have been topping up the class 3 national insurance for the last few years. After the registration as a director of the company, can I pay different class of national insurance via the company? How do they calculate how much I have to pay if the company is not making any money?
Customer reply replied 1 year ago
Or rather I have been employed by the company but it didn't pay me any income, do I get NI credit for it?
UK Tax Professional: Tony Tax, Tax Consultant replied 1 year ago

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.

Ask Your Own UK Tax Question
Customer reply replied 1 year ago
Many Thanks. If I need your help in appealing the possible penalties, how do we go about this?
Guess Class 3 applies to me since I am a house husband. I've been supported by my wife's income. On that fact, shall I mention to the HMRC that I have been supported by my wife when I filled in the SA1 so that they understand how I survive without any income? I would still like to keep the company for possible opportunities. Do you provide professional services for the annual returns for the company (corporation tax) and my self assessment?
UK Tax Professional: Tony Tax, Tax Consultant replied 1 year ago

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.

Ask Your Own UK Tax Question
Customer reply replied 1 year ago
Many Thanks, ***** ***** but can you recommend other qualified professionals/sites. Regarding Class 1 NIC, if I don't earn over £156 per week and don't pay NIC after registering my self-assessment, do I still need to top up my NIC via Class 3 contribution if I want to get my state pension? I paid NIC (don't know what class?) from 1988 all the way to 2009 when I was fully employed. By the way, how many more years do I need to contribute before my state pension is secured (the law as it stands)?
UK Tax Professional: Tony Tax, Tax Consultant replied 1 year ago

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.

Ask Your Own UK Tax Question
UK Tax Professional: Tony Tax, Tax Consultant replied 1 year ago

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.

Ask Your Own UK Tax Question
Customer reply replied 1 year ago
With regard to the self-assessment registration and disclosure, shall I use an apologetic tune like " it is my fault that I assume no tax return is required if I earn below the personal allowance level"? Or shall I just be factual so as not to incriminate myself?
UK Tax Professional: Tony Tax, Tax Consultant replied 1 year ago

There's no harm in giving your reasoning for not completing a tax return.

Ask Your Own UK Tax Question
Customer reply replied 1 year ago
Many Thanks. Can I keep this dialog open in case of follow ups on this subject? If I wanted to ask you question again on other subjects, do I just follow the "request me again" or use other link?
UK Tax Professional: Tony Tax, Tax Consultant replied 1 year ago

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.

Ask Your Own UK Tax Question
Customer reply replied 1 year ago
You said: "... 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." That means I need to earn more than £112 per week but not over £156 per week in order not be counted as "NI paid" hence no need to pay into Class 3 NIC? i.e. I can ask my wife to pay me £156 per week to help with her business in order to get the NI credit(s). I take it that NI credit means it allows you to not to pay NI but still count toward your NI Contribution?
Customer reply replied 1 year ago
Correction: "... in order not to be counted" should be ".... in order to be counted". Sorry.
UK Tax Professional: Tony Tax, Tax Consultant replied 1 year ago

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.

Ask Your Own UK Tax Question
UK Tax Professional: Tony Tax, Tax Consultant replied 1 year ago

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.

Ask Your Own UK Tax Question
Customer reply replied 1 year ago
Thank you for the kind clarification. I wonder in my case of failure to register self assessment as a company director since 2010 would incur, in theory, a maximum penalty of £1,600 x 5 = £8,000? I am just preparing for the worst case scenario. Also, does our Q&A session visible to the public on the web?
Many Thanks.
UK Tax Professional: Tony Tax, Tax Consultant replied 1 year ago

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.

Ask Your Own UK Tax Question
Customer reply replied 1 year ago
Many Thanks. I've done further research on the self assessment for company director. The subject seems to be very divisive among the professionals. For example: http://www.accountingweb.co.uk/any-answers/should-a-director-register-for-self-assessment. The debate is all around the interpretation of TMA 1970. Some say company directors don't need to register if there is no balance of tax payable. Does that apply to me? I don't want to incriminate myself unnecessarily.
UK Tax Professional: Tony Tax, Tax Consultant replied 1 year ago

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.

Ask Your Own UK Tax Question
Customer reply replied 1 year ago
Are the possible penalties of up £1,600 for failure to submit return in time or failure to register for SA as a company director even there is no balance of tax payable? Still want to prepare for the worst case situation. Many Thanks.
UK Tax Professional: Tony Tax, Tax Consultant replied 1 year ago

There can be as they are not tax related.

Ask Your Own UK Tax Question
UK Tax Professional: Tony Tax, Tax Consultant replied 1 year ago

I'm just following up to find out if my answer helped or if you have any further questions.

Ask Your Own UK Tax Question
Customer reply replied 1 year ago
Is this £1600 per year?
UK Tax Professional: Tony Tax, Tax Consultant replied 1 year ago

Yes it is, for the 2011 tax return onwards.

Ask Your Own UK Tax Question
Customer reply replied 1 year ago
Many Thanks. I was filling in the SA and checking my tax records and just realized that I did submit SA before but for my previous employment till 2005 for a few years. HMRC then told me that they did not need me to submit further SAs. Also I have been submitting return for corporation tax (negative profit due to recuring costs) for my company every year since 2011. I have a UTR already. Does it mean I don't need to register again for a new UTR? Can I just add SA in my account on Government Gateway for submitting the corporation tax for my company? I remember I contacted HMRC in 2012 to declare my company dormant so as not to submit the corporation tax returns (CTRs) but they said I still needed to submit the CTR even the company was not trading because the company traded in the first year.
UK Tax Professional: Tony Tax, Tax Consultant replied 1 year ago

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.

Ask Your Own UK Tax Question
Customer reply replied 1 year ago
Within my Gov Gateway account, there are many services available. They include CT and SA. Guess I just need to add SA to my Gov Gatway and see how it goes.
Customer reply replied 1 year ago
It is called Self Assessment (SA) -Service enrolment in my Government Gateway account.
The reason I want to add the SA service is my last year's income is below my personal allowance limit but above the minimum level for NI credit so it may be worth submitting a return and pay Class1 rather than Class 3 NI.
UK Tax Professional: Tony Tax, Tax Consultant replied 1 year ago

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.

Ask Your Own UK Tax Question
UK Tax Professional: Tony Tax, Tax Consultant replied 1 year ago

Hi.

I'm just following up to find out if my answer helped or if you have any further questions.

Ask Your Own UK Tax Question
Ask Tony Tax Your Own Question
Tony Tax
Tony Tax
Tony Tax, Tax Consultant
Category: UK Tax
Satisfied Customers: 15,960
15,960 Satisfied Customers
Experience: Inc Tax, CGT, Corp Tax, IHT, VAT.

Tony Tax is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Sam

Sam

Accountant

6,512 satisfied customers

26 HMRC expertise, PAYE, Self Assessment ,Residency, Capital Gains, CIS ask for Sam Tax

bigduckontax

bigduckontax

Accountant

871 satisfied customers

FCCA FCMA CGMA ACIS

TEAP007

TEAP007

Tax Preparer

759 satisfied customers

Fully Trained Inspector of Taxes / District Inspector/ Team Leader/ Offshore Consultant/ 41 years

Andrew Baker(baktax)

Andrew Baker(baktax)

Personal Tax Adviser

756 satisfied customers

35+ years experience in income tax, CGT, non-residence

berduchwal

berduchwal

Accountant

669 satisfied customers

Qualified accountant and bookkeeper running my own practice since 2008.

Clare

Clare

Solicitor

148 satisfied customers

25 years exeperience as a high street solcitor

Mrs-Tax

Mrs-Tax

Tax Adviser

59 satisfied customers

Law Degree, 19 years in UK Tax.

< Previous | Next >

Related UK Tax Questions
I am a UK national that worked my whole life in USA. I am a
Hello, I am a UK national that worked my whole life in USA. I am a naturalized US citizen. I'm exploring an opportunity from my current employer (hospital) to take a position in their new London hospi… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,808 satisfied customers
I am just completing my 2016/17 tax return as I am self
Hi I am just completing my 2016/17 tax return as I am self employed. During the 16/17 tax year I received a joint endowment payout with my partner of approx £42000. As far as I know the policy was qua… read more
Tony Tax
Tony Tax
Tax Consultant
15,960 satisfied customers
An individual Landlord who owns 6 properties has bought a
An individual Landlord who owns 6 properties has bought a laptop c£800 - can he claim Capital Allowances for it as he uses it to keep his records on and manage his 6 properties? Thanks CAS… read more
Sam
Sam
Accountant
Higher Officer HMRC
6,512 satisfied customers
I am confused so I rang HMRC. Now I'm even more confused!!!.
Hi Sam, I am confused so I rang HMRC. Now I'm even more confused!!!. I am UK resident.I am currently employed PAYE. I have been offered a job by a UK based company, working on a RAF base in the Falkla… read more
Sam
Sam
Accountant
Higher Officer HMRC
6,512 satisfied customers
I am self-employed in the UK, and I do contract work for a
Hi there. I am self-employed in the UK, and I do contract work for a company based in the USA. I get paid in dollars for that contracted work on a per-month basis, based on what work I do & days worke… read more
taxadvisor.uk
taxadvisor.uk
Accountant and Tax Practitioner
Chartered Certified Accountant - FCCA
3,099 satisfied customers
I have setup a partnership UTR with my wife (property
I have setup a partnership UTR with my wife (property management) treated as a Trading business . My turnover from rental income is just under £83,000. But if it did go above that would I have to regi… read more
bigduckontax
bigduckontax
Accountant
FCCA FCMA CGMA ACIS
871 satisfied customers
I would like some advice on is on Capital Gains Tax, more
I would like some advice on is on Capital Gains Tax, more specifically, the 10% Entrepreneurs' Relief option. In May 2015, I sold part of my business, which was a website. The total sale value was $29… read more
Sam
Sam
Accountant
Higher Officer HMRC
6,512 satisfied customers
I'm trying to figure out why my P60 doesn't account for the
I'm trying to figure out why my P60 doesn't account for the taxes paid when my RSU vest. It seems that they put the full amount of shares vested but they don't surface the almost 54% taxes already pai… read more
bigduckontax
bigduckontax
Accountant
FCCA FCMA CGMA ACIS
871 satisfied customers
I've got an interest only buy to let mortgage for £112000 I
I've got an interest only buy to let mortgage for £112000 I was going to put £18000 down it ,which would reduce the monthly to about £220 per month .I currently get £595 per month rent .is it worth in… read more
taxadvisor.uk
taxadvisor.uk
Accountant and Tax Practitioner
Chartered Certified Accountant - FCCA
3,099 satisfied customers
I sold an investment in December 2017 for 100,000 GBP (net
I sold an investment in December 2017 for 100,000 GBP (net sales proceeds) . I bought the investment 15 years ago in 2002 for the total cost of 40,000 GBP I have been working overseas as an expatriate… read more
bigduckontax
bigduckontax
Accountant
FCCA FCMA CGMA ACIS
871 satisfied customers
My friend wants to buy annual leave from her work which then
Hi my friend wants to buy annual leave from her work which then is deducted through her wage over 12 months. Will buying annual leave affect her tax credit… read more
bigduckontax
bigduckontax
Accountant
FCCA FCMA CGMA ACIS
871 satisfied customers
I'm trying to fill in my Micro Entity accounts and it keeps
Hi I'm trying to fill in my Micro Entity accounts and it keeps coming up shareholders funds must equal net assets. Not really sure why can you help please? … read more
taxadvisor.uk
taxadvisor.uk
Accountant and Tax Practitioner
Chartered Certified Accountant - FCCA
3,099 satisfied customers
Regarding self assessment taxes. I'm a USA and UK citizen
Regarding self assessment taxes. I'm a USA and UK citizen and will need to file USA and UK (self assessment) tax returns. Both countries tax on worldwide income.In the USA I have a retirement account … read more
Sam
Sam
Accountant
Higher Officer HMRC
6,512 satisfied customers
I am submitting my Micro HMRC accounts first year for
Hi there I am submitting my Micro HMRC accounts first year for company - if I sen you our balance sheet could I have you tell me what box information needs to be filled in. I would be willing to pay o… read more
taxadvisor.uk
taxadvisor.uk
Accountant and Tax Practitioner
Chartered Certified Accountant - FCCA
3,099 satisfied customers
I am the director of our non profit organisation and am not
Hi I am the director of our non profit organisation and am not getting paid at the current date due to raising funds however I put in a lot of hours per week can I claim working tax credits along with… read more
bigduckontax
bigduckontax
Accountant
FCCA FCMA CGMA ACIS
871 satisfied customers
A person has dual residence in England and Greece with
A person has dual residence in England and Greece with income in both countries. 1.Do both Incomes have to be declared in the UK? 2.Is there a form which needs to be completed to inform the HMRC in UK… read more
TaxRobin
TaxRobin
Vocational, Technical or Trade School
1 satisfied customers
In February 1999 I bought my first house. The listed price I
Hi – in February 1999 I bought my first house. The listed price I paid was £30,500 (paid between deposit and mortgage). In June of 2008 I married and in July of that year I quit my job and my wife and… read more
bigduckontax
bigduckontax
Accountant
FCCA FCMA CGMA ACIS
871 satisfied customers
My question regards taxation on earnings that I have been
My question regards ***** ***** earnings that I have been paid in Bitcoin.I am a sole trader working in the online marketing space, residing and paying tax in the UK.I have been providing marketing se… read more
TaxRobin
TaxRobin
Vocational, Technical or Trade School
1 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x