Could do with some help here. Am I correct in thinking that a newly appointed director, lets say on February 2012, regardless if there full or part time, will have to complete a self assessment in January 2013? And, do they need to adhere to similar rules for the self-employed to declare to HMRC by no later than 6 months (October 2012) after the tax year end on their status?
they're an employee of the company so normal procedures for setting up a new employee (my understanding was that you need to inform HMRC before you make payment to the director but I am happy to be corrected on that).
The part / full time status is immaterial so yes they will need to complete self assessment for this tax year.
kind regards,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Thanks for the reply. To go further, would the director get a reminder from HMRC that a self assessment is due, if HMRC were informed on their status, in the same way as a self empoyed person would? And, should their accountant advise them on their new director role of a company that they need to inform HMRC on their status?
You are assuming that the director is a "working" one, they may not be, although if they are as you said they would be put on the payroll as an employee and pay any tax on a paye basis.
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
The rules are that HMRC should inform you if you are to file a self assessment. However, if you need to file a self assessment and they haven't informed you that doesn't mean that you don't need to file one and you need to get that darn number out of them.
It's the tax payers responsibility to inform HMRC of their status so regardless as to whether their accountant has informed them to or not it's something that they need to take in hand... Of course it may be that the accountant is taking care of the tax affairs of the director and has sorted everything out for them. You really need to talk to their accountant rather than the director about that to avoid any change of reality in transition via the director (I think that directors have filters fitted to ignore any words that mean that they have to do anything themselves and replace them with their accountant saying "I'll be doing that").
Sure that this will all go smoothly for you but just make sure that your client gets that UTR number in plenty of time.
All the best,
Shaun.
__________________
Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
