Do Company Directors need to file self assessment tax returns?

A recent case which was heard at tribunal looked at the question of whether a company director is required to file a self assessment tax return, in relation to an appeal against a late filing penalty.

The conclusions were that although HMRC want company directors to file returns, nothing in the legislation states that directors have to file a return, if there is no charge to tax. However, the law does require an individual to file a return if a notice to file has been issued. The case I refer to above was won by the taxpayer because HMRC were unable to prove they had sent the notice to file to the correct address; he still ended up filing a tax return.

If you are a company director and you receive a notice to file a return then it probably is as well that you do not ignore the notice to file as late filing penalties can amount to £1,600, if a return has not been filed 12 months after the filing deadline.