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Where Taxpayers and Advisers Meet

HMRC "last Self-Assessment Return" letters

Joined:Wed Sep 02, 2009 4:52 pm
HMRC "last Self-Assessment Return" letters

Postby Solbus » Wed Feb 10, 2021 1:57 pm

I have had copy letters from HMRC recently saying that the 2020 returns for two clients will be their last.

Both clients are company directors, both receive dividends (one regularly, the other periodically)

Why would HMRC not want these clients to submit SARs?

Anyone else experienced this?

Joined:Wed Aug 06, 2008 4:01 pm

Re: HMRC "last Self-Assessment Return" letters

Postby robbob » Wed Feb 10, 2021 4:32 pm

Yes thats the new standard procedure.
there is no formal requirment for directors to do tax returns just because they are directors and its nice to see hmrc policy aligning with the legislation in that regard (may be annoying if those returns are a nice fee earner)
I am presuming these directors have dividends less than 10k - so again as far as hmrc are concerned these dividends can easily be reported outside of sa.

So hmrc are are now defaulting to the stance that if you wouldnt need to register for return in the first place if you werent in sa we will default to removing you to get you off our admin load.

this does give us the massive headache though of monitoring clients nor formally within SA to ensure income is reported as required by hmrc each year - so there will be a boatload of inbetweenies that may end up causing more hassle than would be the case by simply preparing returns for the same batch of people. Precicably speaking as they have a utr simple enough to pop in a return next yera if that floats your boat. I think the need is still the same with clients work wise - checking tax codes / marriage transfers / maximising dividends for tax purposes / setting efficient salary levels/ calculating rental icnoem etc that i don;t think alot will cghange other than the nightmare of the inbetweenies and informing clients no tax return doesnt equate no no work being done ref their perosnal tax!.

Joined:Wed Sep 02, 2009 4:52 pm

Re: HMRC "last Self-Assessment Return" letters

Postby Solbus » Wed Feb 10, 2021 5:00 pm

Good point, robbob but both these clients take dividends well in excess of the £10k mark! (One does so every year and has done for many years.)

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