In these unprecedented times, it seems that the only thing we can be certain of is uncertainty. Covid-19 has affected us all in one way or another. Some have been unwell with the illness or have lost loved ones. Others have been affected by job losses or...
There is a widespread belief that every UK company director has to file a tax return. Indeed, the Government's own website suggests that being a company director alone means you should register for self-assessment and file a tax return annually.
However, that is not what tax law says. Under the law, there is no automatic requirement for a company director to file a tax return.
A return must be filed in order to claim certain tax reliefs or if there are liabilities which must be reported to HM Revenue and Customs (HMRC), such as a Capital Gains Tax liability. A return must also be filed where HMRC issue one.
When in doubt, it is less risky to file a tax return, but it is established law that unless there is a tax liability which must be reported, a return does not normally have to be filed.