Self assessment SA100
Discussion
Evening all.
I am a typical PAYE employee. I earned approx £33k last year working for a bank.
On the 3rd April 2014 I received my first dividend from the family company of £75000 . This is what actually hit my bank account.
Today I signed up with hmrc to get my unique tax reference number to allow me to complete my online self assessment.
While I am waiting for this to come though I decided to download a paper copy of the return to see what it is like and to get familiar with it.
So some questions
1/
On page TR2', it asks what makes up my tax return. The only thing on this page is my employed income. So do I tick this box and then complete a supplementary page with all the details? I ask because hmrc should already know this as I am a paye and all tax has been paid, I don't want to double pay!
2/
On page tr3, this looks like where I would enter my dividend income, so I would declare this in box 3' "dividends from uk company's". Is that right?
Then the rest is blank apart from sigining it etc.
Is this correct. So best case just complete the dividend part, or worse case also complete the employed part aswell which they should already know,
Cheers.
I am a typical PAYE employee. I earned approx £33k last year working for a bank.
On the 3rd April 2014 I received my first dividend from the family company of £75000 . This is what actually hit my bank account.
Today I signed up with hmrc to get my unique tax reference number to allow me to complete my online self assessment.
While I am waiting for this to come though I decided to download a paper copy of the return to see what it is like and to get familiar with it.
So some questions
1/
On page TR2', it asks what makes up my tax return. The only thing on this page is my employed income. So do I tick this box and then complete a supplementary page with all the details? I ask because hmrc should already know this as I am a paye and all tax has been paid, I don't want to double pay!
2/
On page tr3, this looks like where I would enter my dividend income, so I would declare this in box 3' "dividends from uk company's". Is that right?
Then the rest is blank apart from sigining it etc.
Is this correct. So best case just complete the dividend part, or worse case also complete the employed part aswell which they should already know,
Cheers.
You will need to complete an Employment supplementary page as well as the SA100.
If you file online the HMRC system asks you about all your sources of income and then gives you all the sections to complete.
If the dividend us not recurring next April, you will probably need to reduce your payments on account for 14/15 as these will be significant otherwise because they are based on the 13/14 tax liability.
David
If you file online the HMRC system asks you about all your sources of income and then gives you all the sections to complete.
If the dividend us not recurring next April, you will probably need to reduce your payments on account for 14/15 as these will be significant otherwise because they are based on the 13/14 tax liability.
David
Err - no.
The requirement to complete the Employment Pages is not dictated by the fact that the taxpayer may have derived some non-employment income (such as a dividend )from an employment.
The Self Assessment process requires that the taxpayer includes ALL their income from ALL sources.
If the taxpayer has one or more employments, then he/she MUST complete a separate set of Employment Pages for each separate employment.
The use of the words "Supplementary Pages" is really a throwback to the days when everyone filled in paper tax forms. The paper form consists of a standard set of 8 pages. For some people, all that needs to be returned can be entered using these main 8 pages.
However, for many more taxpayers, one or more sets of supplementary pages might also need to be filled in. The most common supplementary pages would be -
Employment
Self Employment
Rental Income
Capital Gains Tax
Partnership Income
Foreign Income
If a person is completing the tax return on-line, the "supplementary pages" take the form of additional screens and sets of boxes that the taxpayer needs to be aware they must complete.
The requirement to complete the Employment Pages is not dictated by the fact that the taxpayer may have derived some non-employment income (such as a dividend )from an employment.
The Self Assessment process requires that the taxpayer includes ALL their income from ALL sources.
If the taxpayer has one or more employments, then he/she MUST complete a separate set of Employment Pages for each separate employment.
The use of the words "Supplementary Pages" is really a throwback to the days when everyone filled in paper tax forms. The paper form consists of a standard set of 8 pages. For some people, all that needs to be returned can be entered using these main 8 pages.
However, for many more taxpayers, one or more sets of supplementary pages might also need to be filled in. The most common supplementary pages would be -
Employment
Self Employment
Rental Income
Capital Gains Tax
Partnership Income
Foreign Income
If a person is completing the tax return on-line, the "supplementary pages" take the form of additional screens and sets of boxes that the taxpayer needs to be aware they must complete.
craig51 said:
You lost me there, reduce what payments? As it stands I may receive he same payment same time next year, asin the 2nd of April.
Thanks for the info.
If this is going to be paid again before April 5th 2015 and the amount anticipated is at least the same, then you don't need to do anything.Thanks for the info.
You will pay the balance for 13/14 by 31 January 2015 together with the first payment on account for 14/15 - this will be 50% of the 13/14 balance. Another POA for the same amount will be due 31July 2015.
David
Thanks to you all for your help with this. First time doing it but it all makes sense now.
Ok so
Get my unique code from hmrc
Sign up to their system
Complete return as per above, completing my employers details and income as per my p60, and sticking in my dividend amount as per what I got, so 75k in my bank.
1/ is there any harm doing this sooner. When doing it online will it tell you right away what the tax liability will be. If not, how log will this take to know?
2/ going forward and if we assume I get the same again next April before the 5th, what can I do to lower my tax bill for the next amount. I have a work place pension, I have a un married partner on 24 k a year. I guess I want to lower my income somehow but not sure what's best. Pay more into a pension?
Ok so
Get my unique code from hmrc
Sign up to their system
Complete return as per above, completing my employers details and income as per my p60, and sticking in my dividend amount as per what I got, so 75k in my bank.
1/ is there any harm doing this sooner. When doing it online will it tell you right away what the tax liability will be. If not, how log will this take to know?
2/ going forward and if we assume I get the same again next April before the 5th, what can I do to lower my tax bill for the next amount. I have a work place pension, I have a un married partner on 24 k a year. I guess I want to lower my income somehow but not sure what's best. Pay more into a pension?
Paying more money into a pension or giving money to charities under Gift Aid or Deeds of Covenant can help reduce your self assessment tax bill.
However, these payments will only reduce your tax bill if you are a Higher Rate taxpayer. If you are a basic rate taxpayer only, any tax relief obtainable by making such payments goes directly to the pension fund or the charity and not you personally.
Dividends are a bit complicated in that they will not give rise to any additional tax due from you UNLESS the dividend you receive, when combined with all your other income, puts you into the higher rate tax bracket.
However, these payments will only reduce your tax bill if you are a Higher Rate taxpayer. If you are a basic rate taxpayer only, any tax relief obtainable by making such payments goes directly to the pension fund or the charity and not you personally.
Dividends are a bit complicated in that they will not give rise to any additional tax due from you UNLESS the dividend you receive, when combined with all your other income, puts you into the higher rate tax bracket.
craig51 said:
Get my unique code from hmrc
Sign up to their system
Complete return as per above, c
First time you try and use it you need an activation code, which they post to you. You have to use the code promptly on receipt.Sign up to their system
Complete return as per above, c
Eric Mc said:
Dividends are a bit complicated in that they will not give rise to any additional tax due from you UNLESS the dividend you receive, when combined with all your other income, puts you into the higher rate tax bracket.
He's going to be well into allowance restriction territory, never mind higher rate tax! Might be worth looking at pension contributions to drop below £100K. OP - Probably you should get professional advice rather than just blundering into the SA form at this level.
That's one thing less to worry about at least.
At your levels of income,you would not be entitled to Child Benefit anyway and the best course of action would be to notify the Benefits Agency that you don't want it. Otherwise, they will pay the benefit and then you would have to pay it back through the Self Assessment system.
One way NOT to pay tax on income is not to take the income in the first place. This can be done with dividends by signing a "Dividend Waiver". However, I am sure most people would prefer to have the money and pay the tax than not to have the money at all.
At your levels of income,you would not be entitled to Child Benefit anyway and the best course of action would be to notify the Benefits Agency that you don't want it. Otherwise, they will pay the benefit and then you would have to pay it back through the Self Assessment system.
One way NOT to pay tax on income is not to take the income in the first place. This can be done with dividends by signing a "Dividend Waiver". However, I am sure most people would prefer to have the money and pay the tax than not to have the money at all.
Mmmmm, getting pro help did cross my mind. In my naive mind all I have to do is pay tax due on the 75k and all is good.certainly doing that bit seems easy.
But going forward I want to limit any tax payable, on my normal paye pay I am a lower rate tax payer, but when I get this dividend it punts me into the higher rate. I could pay extra a month into my pension but I also need money to live off and this dividend next April May not happen, but it might so it's hard to plan for.
But going forward I want to limit any tax payable, on my normal paye pay I am a lower rate tax payer, but when I get this dividend it punts me into the higher rate. I could pay extra a month into my pension but I also need money to live off and this dividend next April May not happen, but it might so it's hard to plan for.
With a dividend amount actually received and banked of of £75,000, HMRC will look on that as a tax inclusive Gross Dividend of £83,333.
When working out what element of your income stands to be taxed at Higher Rate Income Tax, £83,333 is added to your Gross Salary (plus any other gross income, such as Gross Bank Interest received).
So, if you already had an annual Gross Salary of (say) £30,000, then your total Gross Income (before tax) for the relevant tax year will be £113,333.
You can gift what you like to whom you like - whether you are married or not. However, transfers of assets between married couples are completely exempt from Inheritance Tax. Transfers of assets between two strangers (as non-married couples are currently seen under English Law) might be subject to IHT.
When working out what element of your income stands to be taxed at Higher Rate Income Tax, £83,333 is added to your Gross Salary (plus any other gross income, such as Gross Bank Interest received).
So, if you already had an annual Gross Salary of (say) £30,000, then your total Gross Income (before tax) for the relevant tax year will be £113,333.
You can gift what you like to whom you like - whether you are married or not. However, transfers of assets between married couples are completely exempt from Inheritance Tax. Transfers of assets between two strangers (as non-married couples are currently seen under English Law) might be subject to IHT.
Edited by Eric Mc on Tuesday 15th April 12:26
Craig
Any chance of the company shifting the dividend payment date by a few days each year?
You may be able to obtain at least a years benefit on the tax bill if the next dividend isnt payable until on or after April 6th 2015!
As mentioned as you are in the marginal band of loosing your personal allowance, personal pension contributions are very effective at mitigating your tax bill as well as putting something aside for the future. Charitable donations via gift-aid also work out good for the charity and for you.
Ideally you want your gross income down to £100k - at present its £116k+.
David
Any chance of the company shifting the dividend payment date by a few days each year?
You may be able to obtain at least a years benefit on the tax bill if the next dividend isnt payable until on or after April 6th 2015!
As mentioned as you are in the marginal band of loosing your personal allowance, personal pension contributions are very effective at mitigating your tax bill as well as putting something aside for the future. Charitable donations via gift-aid also work out good for the charity and for you.
Ideally you want your gross income down to £100k - at present its £116k+.
David
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