Flipping irritating tax return question
Discussion
I ALWAYS hate the boxes 18.1 and 18.2
As you are taxed under PAYE, you will get a tax code. Please enter:
unpaid tax for earlier years included in your tax code for 2005-06
tax due for 2005-06 included as an 'estimated underpayment' in your tax code for 2006-07
Now I know what my tax code is... why on earth doesn't it just say "Please enter your tax code" ? I mean - how the heck am I supposed to know if my tax code includes either of those two things?????
Unless perhaps it would state that explicitly on the tax coding notice - but I tend to just put those into the accounts package, and then chuck them away since I assume once they are in the accounts package, it will calculate the correct tax)
Can anyone clue me in????
As you are taxed under PAYE, you will get a tax code. Please enter:
unpaid tax for earlier years included in your tax code for 2005-06
tax due for 2005-06 included as an 'estimated underpayment' in your tax code for 2006-07
Now I know what my tax code is... why on earth doesn't it just say "Please enter your tax code" ? I mean - how the heck am I supposed to know if my tax code includes either of those two things?????
Unless perhaps it would state that explicitly on the tax coding notice - but I tend to just put those into the accounts package, and then chuck them away since I assume once they are in the accounts package, it will calculate the correct tax)
Can anyone clue me in????
And I've just read the fine print on the payments on account I made last year (taking some money out as dividends means that I had additional tax to pay on top of the PAYE deductions) which states that if the payments on account are less than the actual tax liability in 05/06, I will be charged interest.
FFS!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Those
ing greedy s.
I'm so sick to death of all ths bullshit and the way it's honest people like us that end up being penalised and charged interest whilst criminals get away with murder and laugh it up. Of course that's because catching criminals is hard work compared with taxing and penalising people who are on the radar precisely because they do actually pay tax and complete tax returns.
FFS!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Those
ing greedy s. I'm so sick to death of all ths bullshit and the way it's honest people like us that end up being penalised and charged interest whilst criminals get away with murder and laugh it up. Of course that's because catching criminals is hard work compared with taxing and penalising people who are on the radar precisely because they do actually pay tax and complete tax returns.
If you were paid via dividends, then you will have a tax credit of 10% of gross dividend (i.e. your received dividend divided by 0.9 will give you the gross, but you MUST have a tax voucher to be able to claim), and you'll need to only pay the difference of 22.5% IF your earnings fall into the 40% bracket.
The dividend must have been declared properly though (otherwise there are other consequences in that it could be construed as earned income and taxed accordingly), and you will most likely need to settle up any further tax with the revenue with just a balancing payment.
The dividend must have been declared properly though (otherwise there are other consequences in that it could be construed as earned income and taxed accordingly), and you will most likely need to settle up any further tax with the revenue with just a balancing payment.
The Payments on Account for 2005/06 would have beem set at a value equal to the Self Assessment tax liability for 2004/05. If the actual Self Assessment tax liability for 2005/06 turns out to be higher than the total of the two Payments on Account already made, you pay the difference by 31 January 2007. You will NOT be charged interest on the difference between the two amounts.
You WILL be charged interest if you had elected to have the two 2005/06 Payments on Acount reduced (by the completion and submission of the "Application to Reduce Payments on Account" Form SA303) and the reduced Payments on Account turned out to be too low. Then the Revenue will charge interest on the difference between what was actually paid and what should have been paid.
Of course, if you pay your 31 January tax payments late, interest will be levied.
You WILL be charged interest if you had elected to have the two 2005/06 Payments on Acount reduced (by the completion and submission of the "Application to Reduce Payments on Account" Form SA303) and the reduced Payments on Account turned out to be too low. Then the Revenue will charge interest on the difference between what was actually paid and what should have been paid.
Of course, if you pay your 31 January tax payments late, interest will be levied.
zadumbreion said:
I'm so sick to death of all ths bullshit and the way it's honest people like us that end up being penalised and charged interest whilst criminals get away with murder and laugh it up. Of course that's because catching criminals is hard work compared with taxing and penalising people who are on the radar precisely because they do actually pay tax and complete tax returns.
Its because we are an easy target. My accountant warned me that as a 'soft' target I would get the attention of HMRC when they had targets to hit or points to make, because the real tough cookies with nasty dogs, nasty attitudes and a history of being awkward are to much trouble. He had even had HMRC on his doorstep within days when the boss had forgotten to post the PAYE cheque, but one if his clients who turned the dogs on them and told them to go away was left alone.
Eric Mc said:
The Payments on Account for 2005/06 would have beem set at a value equal to the Self Assessment tax liability for 2004/05. If the actual Self Assessment tax liability for 2005/06 turns out to be higher than the total of the two Payments on Account already made, you pay the difference by 31 January 2007. You will NOT be charged interest on the difference between the two amounts.
You WILL be charged interest if you had elected to have the two 2005/06 Payments on Acount reduced (by the completion and submission of the "Application to Reduce Payments on Account" Form SA303) and the reduced Payments on Account turned out to be too low. Then the Revenue will charge interest on the difference between what was actually paid and what should have been paid.
Of course, if you pay your 31 January tax payments late, interest will be levied.
You WILL be charged interest if you had elected to have the two 2005/06 Payments on Acount reduced (by the completion and submission of the "Application to Reduce Payments on Account" Form SA303) and the reduced Payments on Account turned out to be too low. Then the Revenue will charge interest on the difference between what was actually paid and what should have been paid.
Of course, if you pay your 31 January tax payments late, interest will be levied.
Ah OK.. that's better
So - in order for them to officially receive payment by 31 Jan - I guess I need to send them a cheque, since if I put payment through tomorrow (Internet, not BACS) it won't quite clear by 31st. Unles you get a day or two leeway??
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