Director - compulsory tax return?

[Incredulum]

A director of a company he holds 100%; employed but not paid a salary - though paid a dividend - in the year to April 2012. Does he have to complete an IT tax return?

Thanks.

[marrow]

According to HMRC guidance yes he does however there is no legislative support for this view and therefore unless there is another reason to be within self assessment then he has no obligation to complete a return unless one has been issued by HMRC. Of course if he is required to notify chargeablility due to the level of dividends taking him over the HR threshold then this should have been done by 5 October 2012.

[Incredulum]

Thank you, that is helpful (no, he has (sadly!) not managed to become a higher rate taxpayer).

[etf]

A similar thread below which concurs with Marrow and HMRC's misleading guidance

http://www.accountingweb.co.uk/anyanswe ... tax-return

You must complete a return if you're any of the following

a company director (unless you're a director of a non-profit organisation, for example a charity, and don't receive any payments or benefits)