Guidance is not law

Obligation of a company director to submit a return without receiving a notice to file

The taxpayer appealed against penalties imposed for the late filing of his 2014-15 tax return on the ground that no legislation required an individual to file a return on the basis that they were a company director. Had HMRC told him it was necessary he would have filed a return ‘immediately’.

HMRC said a company director should submit a return each year without prompt or reminder.

The First-tier Tribunal disagreed with the Revenue. The judge found nothing in the legislation to support this. It appeared that HMRC had based its assertion on government guidance on running a limited company (www.gov.uk/running-a-limited-company) in which it was stated that ‘as a director of a limited company you must … register for self assessment … and send a personal self-assessment tax return’. But the judge said...