Hi all

I know someone who is, technically, a company director. The company is non-trading and it has never traded. His only income is taxed at source through PAYE. This has always been the case and always will be.

The question is: does he have to file an income tax return? HMRC has confirmed that he does not need to file a corporation tax return as the company does not trade, but does the fact that he is a director mean that he has to file an income tax return? HMRC are aware of his directorship and he's not received any request from HMRC to file a return. Nor has he registered for self assessment.

If he does have to file a return, is it still practically possible to do so in time? And what are the penalties if he fails to do so by 31 Jan? I thought income tax penalties were tax-geared now and as there is no late payment/non-declaration of taxable income here, I don't see that a penalty is even possible?

Thanks