Self-assessment, worth it for £1500 a year?
Discussion
Self-assessment worth it for £1500?
It would appear that I might be £1500 better off of it went on to self-assessment from this April.
Being employed and paying income tax and NI via PAYE I don’t need to do a self-assessment, but not being a powerfully built company director type, £1500 is a reasonable lump of cash each year and if it just means spending a wet Sunday filling in an on-line form then it’s probably worth it.
But I have heard some horror stories self-assessment and people saying to avoid it at all costs as it’s a real pain. Also, can anyone advise whether in the future I would be able to simply return to PAYE as my choice?
Any real-world advice great fully received.
Thanks in advance
It would appear that I might be £1500 better off of it went on to self-assessment from this April.
Being employed and paying income tax and NI via PAYE I don’t need to do a self-assessment, but not being a powerfully built company director type, £1500 is a reasonable lump of cash each year and if it just means spending a wet Sunday filling in an on-line form then it’s probably worth it.
But I have heard some horror stories self-assessment and people saying to avoid it at all costs as it’s a real pain. Also, can anyone advise whether in the future I would be able to simply return to PAYE as my choice?
Any real-world advice great fully received.
Thanks in advance
Cotswold Jim said:
Ahh that’s good news, no I’m not VAT registered, not even self-employed.
So not something I would need an accountant to help with or anything like that then?
I'm not sure but it only costs me about £200-300 for an accountant to do my personal return so you'd still be quids in.So not something I would need an accountant to help with or anything like that then?
I don't know if it's still the case, but in 2008 I was on self assessment because I was a contractor (IT). When I went into a permanent job, I asked to be taken off self assessment, and they did. Haven't done one for 10 years.
Now your post has made me think again. On what basis do you think you'll be £1500 better off? I'd do self assessment for that in the blink of an eye.
Now your post has made me think again. On what basis do you think you'll be £1500 better off? I'd do self assessment for that in the blink of an eye.
I've been doing SA for well over 20 years. My wife's too when required. The real key to making life easier when it comes to actually completing the SA form is to ensure that you have collected together a copy of every relevant document and then kept a record of the relevant information in a spreadsheet or two. For example, if you have several savings accounts where interest is paid gross, keep a record of the company, gross amount and date paid. Then when it comes to doing the SA you'll have everything available, get the relevant totals and fill in the boxes...job done.
Takes me maybe less than an hour each year as I have everything prepared as the year goes by.
Actually, I suppose the complications with SA arise if you have many different sources and/or different types of income. I have several sources, all investment related. I don't have any property, trusts etc to take into account.
R.
Takes me maybe less than an hour each year as I have everything prepared as the year goes by.
Actually, I suppose the complications with SA arise if you have many different sources and/or different types of income. I have several sources, all investment related. I don't have any property, trusts etc to take into account.
R.
Great thanks for the reply’s, I think I will take the plunge then.
I don’t have any investment income, just wages for my wife and I and the child benefit (that she would be losing if I don’t go into SA and pay tax on it) I don’t think my wife will need to go on to SA, just me I think
I don’t have any investment income, just wages for my wife and I and the child benefit (that she would be losing if I don’t go into SA and pay tax on it) I don’t think my wife will need to go on to SA, just me I think
The Leaper said:
I've been doing SA for well over 20 years. My wife's too when required. The real key to making life easier when it comes to actually completing the SA form is to ensure that you have collected together a copy of every relevant document and then kept a record of the relevant information in a spreadsheet or two. For example, if you have several savings accounts where interest is paid gross, keep a record of the company, gross amount and date paid. Then when it comes to doing the SA you'll have everything available, get the relevant totals and fill in the boxes...job done.
Takes me maybe less than an hour each year as I have everything prepared as the year goes by.
Actually, I suppose the complications with SA arise if you have many different sources and/or different types of income. I have several sources, all investment related. I don't have any property, trusts etc to take into account.
R.
I would agree with that ^^.Takes me maybe less than an hour each year as I have everything prepared as the year goes by.
Actually, I suppose the complications with SA arise if you have many different sources and/or different types of income. I have several sources, all investment related. I don't have any property, trusts etc to take into account.
R.
I'm an Accountant (but not practising). I submit a few returns for friends and family and it probably takes about 30 minutes to an hour depending on how complicated they are. Like most things, the more often you do it the easier it becomes.
£1,500 seems exceptionally pricey IMO but it all depends on how complicated your finances are. A friend of mine charges £150 for BTL accounts, up to £1,000 for a small retail business. However the price is tailored for each client.
Countdown said:
I would agree with that ^^.
I'm an Accountant (but not practising). I submit a few returns for friends and family and it probably takes about 30 minutes to an hour depending on how complicated they are. Like most things, the more often you do it the easier it becomes.
£1,500 seems exceptionally pricey IMO but it all depends on how complicated your finances are. A friend of mine charges £150 for BTL accounts, up to £1,000 for a small retail business. However the price is tailored for each client.
I thought OP was saying he would get £1500 back. Not that it would cost £1500 in fees to have it done for him. SA is easy as a PAYE, no brainer IMO. I'm an Accountant (but not practising). I submit a few returns for friends and family and it probably takes about 30 minutes to an hour depending on how complicated they are. Like most things, the more often you do it the easier it becomes.
£1,500 seems exceptionally pricey IMO but it all depends on how complicated your finances are. A friend of mine charges £150 for BTL accounts, up to £1,000 for a small retail business. However the price is tailored for each client.
Yes,i believe I will be £1500 better off if I do self assessment. Not that someone want to charge me that for doing SA.
Basically, without going into too much detail, l believe there is a benefit my wife claims that she will no longer be eligible for due to the amount I earn, unless I do SA, and pay tax on it.
Basically, without going into too much detail, l believe there is a benefit my wife claims that she will no longer be eligible for due to the amount I earn, unless I do SA, and pay tax on it.
Edited by Cotswold Jim on Monday 25th March 20:08
Skyedriver said:
For the uninitiated, could you explain why SA is worth doing?
I'm now a pensioner as of this year, 4 separate small pensions inc state pension. Feel I'm getting screwed by HMRC over stuff from my working days .
Thanks in advance
For me, business mileage claim back (few hundred a year), pension tax relief (not a lot) and last year share benefits. Like others have said, keep the paperwork handy and it can be done in an hour. Mileage expenses I'm sure could be made simpler though. Last financial year was first in ten that I've underpaid tax, mainly due to a reduction in business mileage and the share benefits.I'm now a pensioner as of this year, 4 separate small pensions inc state pension. Feel I'm getting screwed by HMRC over stuff from my working days .
Thanks in advance
bmwmike said:
Countdown said:
I would agree with that ^^.
I'm an Accountant (but not practising). I submit a few returns for friends and family and it probably takes about 30 minutes to an hour depending on how complicated they are. Like most things, the more often you do it the easier it becomes.
£1,500 seems exceptionally pricey IMO but it all depends on how complicated your finances are. A friend of mine charges £150 for BTL accounts, up to £1,000 for a small retail business. However the price is tailored for each client.
I thought OP was saying he would get £1500 back. Not that it would cost £1500 in fees to have it done for him. SA is easy as a PAYE, no brainer IMO. I'm an Accountant (but not practising). I submit a few returns for friends and family and it probably takes about 30 minutes to an hour depending on how complicated they are. Like most things, the more often you do it the easier it becomes.
£1,500 seems exceptionally pricey IMO but it all depends on how complicated your finances are. A friend of mine charges £150 for BTL accounts, up to £1,000 for a small retail business. However the price is tailored for each client.
From what the op is saying it sounds like his wife claims child benefit and he possibly earns over £50K.
If so it is not that you tax on it, but that you have to pay some of it back. There is also a fine for doing so.
If this is the case you are likely to be worse off, not better. But you need to do it and it’s easy.
If so it is not that you tax on it, but that you have to pay some of it back. There is also a fine for doing so.
If this is the case you are likely to be worse off, not better. But you need to do it and it’s easy.
Skyedriver said:
For the uninitiated, could you explain why SA is worth doing?
I'm now a pensioner as of this year, 4 separate small pensions inc state pension. Feel I'm getting screwed by HMRC over stuff from my working days .
Thanks in advance
The best thing is to do a tax "health check" to see if the PAYE system is deducting the correct tax amounts from each of your pensions. If it isn't, registering to complete self assessment tax returns might be worthwhile.I'm now a pensioner as of this year, 4 separate small pensions inc state pension. Feel I'm getting screwed by HMRC over stuff from my working days .
Thanks in advance
Is it possible for anyone to just register with HMRC, even if they don't have to use Self Assessment, then go through the SA process, up to the calculation, without executing the final step of submitting the return?
I know I was able to do so (as a check) after HMRC had written to say that I didn't need to, but I was already registered because I had submitted SA returns in previous years.
I don't recall having had any sort of "invitation code" the first time I registered for SA.
I know I was able to do so (as a check) after HMRC had written to say that I didn't need to, but I was already registered because I had submitted SA returns in previous years.
I don't recall having had any sort of "invitation code" the first time I registered for SA.
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