Help! When do I have to complete my self assessment?
Discussion
Afternoon all,
I've filed a Self Assessment return online for the last few years, and always met the end of January deadline.
I hadn't expected this year to be any different, but the Telegraph is talking about people being fined if they've not taken action over Cameron the weasel's theft of Child Benefit by Saturday!
Is this year different? Do online returns have to be filed by Saturday? Or is it that just people who've not previously submitted a self assessment have to be registered to do so by Saturday?
I'm confused by it, and don't want to end up getting fined for getting it wrong! I've tried phoning the HMRC helpline, but with the paper form deadline definitely being on Saturday, it's no great surprise that I was on hold for 34 minutes by the time I had to drop off for a meeting.
I've filed a Self Assessment return online for the last few years, and always met the end of January deadline.
I hadn't expected this year to be any different, but the Telegraph is talking about people being fined if they've not taken action over Cameron the weasel's theft of Child Benefit by Saturday!
Is this year different? Do online returns have to be filed by Saturday? Or is it that just people who've not previously submitted a self assessment have to be registered to do so by Saturday?
I'm confused by it, and don't want to end up getting fined for getting it wrong! I've tried phoning the HMRC helpline, but with the paper form deadline definitely being on Saturday, it's no great surprise that I was on hold for 34 minutes by the time I had to drop off for a meeting.
Nope - duff information.
The Self Assessment filing deadlines have not changed.
HOWEVER, with the Child Benefit now being restricted based on the income going into a household, some people may receive TOO MUCH child benefit if they don't get their tax affairs notified to HMRC early enough.
You can see the utter mess we get ourselves in when you try to link the benefits system with the tax system. They are virtually incompatible when it comes to matching claim deadlines for benefits versus statutory filing deadlines for tax submissions.
There always has been a general earlier Self Assessment submission deadline for people who -
a) insist on filing paper returns
b) want HMRC to calculate their tax position for them.
Originally that earlier filing date was 30 September but is now 31 October.
The REAL filing deadline remains at 31 January.
The Self Assessment filing deadlines have not changed.
HOWEVER, with the Child Benefit now being restricted based on the income going into a household, some people may receive TOO MUCH child benefit if they don't get their tax affairs notified to HMRC early enough.
You can see the utter mess we get ourselves in when you try to link the benefits system with the tax system. They are virtually incompatible when it comes to matching claim deadlines for benefits versus statutory filing deadlines for tax submissions.
There always has been a general earlier Self Assessment submission deadline for people who -
a) insist on filing paper returns
b) want HMRC to calculate their tax position for them.
Originally that earlier filing date was 30 September but is now 31 October.
The REAL filing deadline remains at 31 January.
The deadline being shouted about today is not a deadline for SUBMITTING a 2012/13 self assessment tax return.
It is a deadline for NOTIFYING HMRC that you have a legal obligation to make a 2012/13 tax return.
Under the self assessment tax system, it is the TAXPAYER'S responsibility (not HMRC's ) to know and understand when they are obliged to make a self assessment tax return.
With the advent of the Child Benefit Tax Clawback system, about 400,000 people who have never needed to complete Self Assessment tax returns before now must do so - but a couple of hundred thousand don't seem to realise they now have this obligation.
It is those people who are likely to miss the notification deadline and will probably receive automatic penalties for "Failure to Notify".
It is a deadline for NOTIFYING HMRC that you have a legal obligation to make a 2012/13 tax return.
Under the self assessment tax system, it is the TAXPAYER'S responsibility (not HMRC's ) to know and understand when they are obliged to make a self assessment tax return.
With the advent of the Child Benefit Tax Clawback system, about 400,000 people who have never needed to complete Self Assessment tax returns before now must do so - but a couple of hundred thousand don't seem to realise they now have this obligation.
It is those people who are likely to miss the notification deadline and will probably receive automatic penalties for "Failure to Notify".
Correct, see half way down this page for confirmation: http://www.hmrc.gov.uk/childbenefitcharge/whatnext...
And why didn't the morons in government change the tax treatment from 6 April, rather than 7 January?! They just love to complicate things I suppose...
And why didn't the morons in government change the tax treatment from 6 April, rather than 7 January?! They just love to complicate things I suppose...
Correct, see half way down this page for confirmation: http://www.hmrc.gov.uk/childbenefitcharge/whatnext...
And why didn't the morons in government change the tax treatment from 6 April, rather than 7 January?! They just love to complicate things I suppose...
And why didn't the morons in government change the tax treatment from 6 April, rather than 7 January?! They just love to complicate things I suppose...
Kermit power said:
So, just for the avoidance of doubt, if I've done these for the last few years, and have already received my notification to complete this year's, I don't have to do anything other than fill it in as I have done in previous years?
Yes except there is a new section for you to enter the amount of child benefit received after 7 January 2013 - this will be fully clawed back if you earn £60k and partially if greater than £50k.The issue will be far greater in the current 13/14 tax year as the WHOLE years benefit may be repayable.
David
Article in today's bulletin from accountingweb.com
Individuals earning more than £50,000 who have failed to opt out of child benefit and do not register for self assessment by 5 October risk being severely fined.
The deadline this year will for the first time have detrimental consequences for individuals or couples who earn more than £50,000 and who have claimed child benefit since 7 January 2013.
HMRC has said around 400,000 parents have opted out of receiving child benefit payments, with 530,000 registered for self assessment. That leaves around 220,000 people who still need to register by the October deadline.
With this key deadline approaching, and potentially steep penalties at stake, a number of tax experts have urged people to get in touch with HMRC.
Chas Roy-Chowdhury, head of taxation at the ACCA, told AccountingWEB that is was extremely important individuals tell HMRC otherwise they will be late filing their tax return.
“There’s going to be penalties for that of £100,” he said, “and then penalties for not declaring the income and tax on that, and that will run up to hundreds of pounds.”
He also warned that in the majority of cases, the individuals will not be aware of the need to register for SA.
“It’s a really badly designed tax where the person who doesn’t receive the income is the one that pays the tax quite often, and in the vast majority of cases it is difficult for people to know that there is a tax. For many people they may not think it affects them, but it does.”
“Potentially tens of thousands of people will be totally oblivious that it’s going to have an impact on them,” Roy-Chowdhury said.
Lucy Brennan, a partner at Saffery Champness, also urged individuals to get their tax affairs in order with the utmost urgency.
“The six-month deadline for notifying HMRC that a tax return was due for the tax year to 5 April 2013 is fast approaching. Those whose tax situations have changed, or who are claiming certain reliefs, need to register for self-assessment by Saturday 5 October to avoid being fined by HMRC,” she said.
Brennan said if HMRC is not notified of the need to file a SA by 5 October, then a penalty will be due. “The maximum penalty is the net amount of tax due on 31 January following the tax year for which the return is not filed. Therefore, if say £10,000 of rental income was received and £4,000 tax due, but unpaid as HMRC have not been notified and a return has not been filed, a penalty of £4,000 could be due.
“HMRC can be notified of the requirement to file the return online and affected individuals should act quickly to ensure they do not receive a costly, but easily avoidable, fine. With this year’s net cast wider than ever before, failure to act could prove to be an expensive mistake for many,” she said.
HMRC’s net will also catch taxpayers:
who have changed their employment status in the tax year, such as those who have become self-employed or company directors
with an annual income in excess of £100,000
with income being received from savings, investments or property where additional tax should be paid and is not already being collected through their PAYE code
who are employed and who need to claim expenses associated to their employment in excess of £2,500
claiming certain reliefs, such as EIS
who have capital gains tax to pay, for example have sold an asset such as a second home
Back at the start of the year, AccountingWEB revealed that half a million new people would be required to complete a SA tax return for the year ending April after the new high income child benefit charge (HICBC) kicked in.
The previous October Rebecca Benneyworth had warned about the coming “train wreck”, predicting that the new rules would result in a “disaster for us and even worse for HMRC.”
Individuals earning more than £50,000 who have failed to opt out of child benefit and do not register for self assessment by 5 October risk being severely fined.
The deadline this year will for the first time have detrimental consequences for individuals or couples who earn more than £50,000 and who have claimed child benefit since 7 January 2013.
HMRC has said around 400,000 parents have opted out of receiving child benefit payments, with 530,000 registered for self assessment. That leaves around 220,000 people who still need to register by the October deadline.
With this key deadline approaching, and potentially steep penalties at stake, a number of tax experts have urged people to get in touch with HMRC.
Chas Roy-Chowdhury, head of taxation at the ACCA, told AccountingWEB that is was extremely important individuals tell HMRC otherwise they will be late filing their tax return.
“There’s going to be penalties for that of £100,” he said, “and then penalties for not declaring the income and tax on that, and that will run up to hundreds of pounds.”
He also warned that in the majority of cases, the individuals will not be aware of the need to register for SA.
“It’s a really badly designed tax where the person who doesn’t receive the income is the one that pays the tax quite often, and in the vast majority of cases it is difficult for people to know that there is a tax. For many people they may not think it affects them, but it does.”
“Potentially tens of thousands of people will be totally oblivious that it’s going to have an impact on them,” Roy-Chowdhury said.
Lucy Brennan, a partner at Saffery Champness, also urged individuals to get their tax affairs in order with the utmost urgency.
“The six-month deadline for notifying HMRC that a tax return was due for the tax year to 5 April 2013 is fast approaching. Those whose tax situations have changed, or who are claiming certain reliefs, need to register for self-assessment by Saturday 5 October to avoid being fined by HMRC,” she said.
Brennan said if HMRC is not notified of the need to file a SA by 5 October, then a penalty will be due. “The maximum penalty is the net amount of tax due on 31 January following the tax year for which the return is not filed. Therefore, if say £10,000 of rental income was received and £4,000 tax due, but unpaid as HMRC have not been notified and a return has not been filed, a penalty of £4,000 could be due.
“HMRC can be notified of the requirement to file the return online and affected individuals should act quickly to ensure they do not receive a costly, but easily avoidable, fine. With this year’s net cast wider than ever before, failure to act could prove to be an expensive mistake for many,” she said.
HMRC’s net will also catch taxpayers:
who have changed their employment status in the tax year, such as those who have become self-employed or company directors
with an annual income in excess of £100,000
with income being received from savings, investments or property where additional tax should be paid and is not already being collected through their PAYE code
who are employed and who need to claim expenses associated to their employment in excess of £2,500
claiming certain reliefs, such as EIS
who have capital gains tax to pay, for example have sold an asset such as a second home
Back at the start of the year, AccountingWEB revealed that half a million new people would be required to complete a SA tax return for the year ending April after the new high income child benefit charge (HICBC) kicked in.
The previous October Rebecca Benneyworth had warned about the coming “train wreck”, predicting that the new rules would result in a “disaster for us and even worse for HMRC.”
Sorry to jump on the back of someone else's post but whilst on the subject of Self Assessment, can someone please answer what is probably a very simple question?
When filling in 'Underpaid tax included in PAYE coding for earlier years included in your tax code for 2012-13 (from your PAYE Notice of Coding)', do you use the 'Underpayment Restriction' figure from the front of the Coding Notice or the figure from the notes on the back?
And is 'Outstanding Debt' labelled as such in a plain English, idiot-proof fashion? And if not where is it usually listed?
Cheers
Dave
When filling in 'Underpaid tax included in PAYE coding for earlier years included in your tax code for 2012-13 (from your PAYE Notice of Coding)', do you use the 'Underpayment Restriction' figure from the front of the Coding Notice or the figure from the notes on the back?
And is 'Outstanding Debt' labelled as such in a plain English, idiot-proof fashion? And if not where is it usually listed?
Cheers
Dave
Edited by DJFish on Saturday 5th October 15:37
The figure on the back.
The "Underpayment Adjustment" is not the tax arrears amount itself - it's the amendment that needs to be made to your Personal Tax allowances to allow HMRC to collect the actual arrears of tax through this year's PAYE.
What "Outstanding Debt" are you referring to?
The "Underpayment Adjustment" is not the tax arrears amount itself - it's the amendment that needs to be made to your Personal Tax allowances to allow HMRC to collect the actual arrears of tax through this year's PAYE.
What "Outstanding Debt" are you referring to?
Thanks Eric, that's most helpful.
The Outstanding debt question is in relation to the 'Other Debt' section which concerns "Outstanding debt included in your tax code for 2012-13. Please enter '0' if there is nothing shown or you did not have a PAYE code."
I'm presuming that it's a 0 since I was pretty standard PAYE before this year and there's nothing highlighted in big capital letters on my last coding notice.
I'm sure they'll tell me soon enough if I'm wrong!
Cheers
Dave
The Outstanding debt question is in relation to the 'Other Debt' section which concerns "Outstanding debt included in your tax code for 2012-13. Please enter '0' if there is nothing shown or you did not have a PAYE code."
I'm presuming that it's a 0 since I was pretty standard PAYE before this year and there's nothing highlighted in big capital letters on my last coding notice.
I'm sure they'll tell me soon enough if I'm wrong!
Cheers
Dave
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