Tax return if you both employed & own a company(zero inc

[snugglers]

Hi,

I am on tier1 general. I am working full time at a company and pay tax through the company PAYE scheme.

However, in June last year, I resigned from my previous employer and have two months gap before starting the work with my new employer. During the two month gap, I set up a limited company (I'm the only director) and registered myself as a self-employed. After I started a new job, I called HMRC telling them that I was no longer self-employed. So the situation now is that my limited company is like a part-time business to me. However, the company didnt' do well, so I didnt' make any money (zero income) since I set it up and I didnt' draw any money from the company as a salary.

Now the quetion is, do I have to file self assessessment tax return? I know I have to file the corporate tax return no matter what but I'm not sure about my personal return. My regular income from the company I work for is definitely being take care of by the company. But what about the other part - where I am a director of a company which didnt' make any money and I draw zero money as a salary?

Can anyone advice please? I have tried so hard to find the answer but getting no where. Thanks.

[HSK Accountancy Services]

Hi,

I am on tier1 general. I work full time at a company and pay tax through the company PAYE scheme.

However, 5 months ago, I also set up a company as my part-time income and I'm the only director. However, the company didnt' do well (basically I didnt' have much time to run it), so I didnt' make any money (zero income) and I didnt' draw any money from the company as a salary.

Now the quetion is, do I have to file tax return? My regular income from the company I work for is definitely being take care of by the company. But what about the other part - where I am a director of a company which didnt' make any money and I draw zero money as a salary?

Can anyone advice please? I have tried so hard to find the answer but getting no where. Thanks.

At the end of your accounting period your company needs to file tax return even there is no trading. You can file dormant company return.

You as an individual dont need to worry because your 100 % income is covered in PAYE returns.

In future if your company starts trading and you pay dividend to yourself then you have to think about tax returns etc.

Hope that helps.

Cheers

[republique]

Hi,

I am on tier1 general. I work full time at a company and pay tax through the company PAYE scheme.

However, 5 months ago, I also set up a company as my part-time income and I'm the only director. However, the company didnt' do well (basically I didnt' have much time to run it), so I didnt' make any money (zero income) and I didnt' draw any money from the company as a salary.

Now the quetion is, do I have to file tax return? My regular income from the company I work for is definitely being take care of by the company. But what about the other part - where I am a director of a company which didnt' make any money and I draw zero money as a salary?

Can anyone advice please? I have tried so hard to find the answer but getting no where. Thanks.

For now, nope but once you file self assessment, you are pretty much doomed to do it forever. They will send it to you or expect you to do it even if you not running a ltd company or self employed. Take advantage of this blissful period today.

[snugglers]

Thank you very much Sheraz and republique for your reply.

I might have forgot to mention some information which at first thought irrelevant. Now, I'm not sure anymore. Before I started the company 5 months ago I resigned from my previous employer so during the 2 months gap (between changing the employer), I registered my self as self-employed but the fact still remain the same that I didnt' make any money from my company or anywhere else. As soon as I started a new job with my new employer, I called the HMRC to tell them that I no longer self-employed cos I started working full time for a new employer. Will this piece of information have any implication that might change your previous answer?

So to summarise (and to re-cap if i understand correctly), is that mean...
1) I don't have to file a separate 'self-assessment' tax return because the company I'm working for has already done it (but as soon as I start drawing the money from my 'own' company as a salary, I have to file the 'self-assessment' tax return separately).
2) I still have to file a 'corporate' tax return at the end of accounting period (which will be around 6 months from now)

Some source on the internet claims all the director has to file 'self-assessment' tax online by Jan 31 (but not mentioned anything if the director hasn't withdraw any income fromt the company nor the company didn't make money) which really make me confused

Thanks again for your help. Much appreciate it.