I'm not sure what the confusion is here -
The legislation which I've already quoted indicates:This is made quite clear in the Notes for Guidance ([broken link removed]) at page 4:
- a chargeable person is obliged to file a return
- S.959B (formerly S.950) clearly excludes from the definition of a chargeable person, a director of a non-trading, dormant company
"This section excludes certain persons from the definition of "chargeable persons" in section 959A, namely it excludes persons:
whose only source of income is emoluments taxed under the PAYE system (under Part 42) provided that person is not a Director of a trading company ]
But in this case it's a trading company.
Tommy - I googled your comment above and found a newsletter from 1999 from revenue at [broken link removed] It states that the penalty is based on your income from the directorship. So 10% of zero is zero! I'll print that out, highlight the relevant section and send it in to them. Thank you for your help. Much appreciated. I'm presuming that there has been no change to the legislation since then?
The issue is not whether a return should have been made or not. It should have been submitted. There is no question about that. The question now is what income tax liability should be used to calculate the penalty. The legislation doesn't specify as far as I can see but the newsletter I referred to above states that the penalty is calculated on the income tax liability from the directorship. I am hoping that nothing has been introduced since that newsletter was issued by revenue that would mean the penalty is calculated on all income from all sources. If anyone knows of anything else in relation to this I would appreciate the help.
I do appreciate all the advice and pointers.
The legislation does specify - the surcharge is due on the total tax liability, without credit for PAYE paid in the proprietary directorship.
]
What's the difference between a proprietary and non Proprietary?
So you end up paying the LPT twice?
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