Tax Returns (new question)
Discussion
Of course the IR helpdesk is permanently engaged so thought I would ask a question here
Last Feb after completing my 2003-2004 return the IR wrote back saying that they didnt propose in sending me a Tax Return in the future.
However they say if there is a change in my financial circumstances then I should let them know.
Well what is the definition of change in circumstances....my income has increased though I am on PAYE, my interest on savings has increased though it is the same accounts and dividends have increased.
So the question is should I do something before the end of January and advise them online?
Cheers
Last Feb after completing my 2003-2004 return the IR wrote back saying that they didnt propose in sending me a Tax Return in the future.
However they say if there is a change in my financial circumstances then I should let them know.
Well what is the definition of change in circumstances....my income has increased though I am on PAYE, my interest on savings has increased though it is the same accounts and dividends have increased.
So the question is should I do something before the end of January and advise them online?
Cheers
If you feel you will underpay tax then you should file a return, equally if you feel you will overpay then this may be the easiest way to generate a refund.
By change of circumstances they men things like, did you begin self-employment, do you have any capital gains which need declaring, have you dividend income when you are a 40% tax payer, etc, etc.
If you have just earned a bit more money and have received a bit of interest on savings then I wouldn't worry too much TBH.
Bizarlly (sp?), the Revenue also told me I no longer needed to file a return and I'm self-employed! Obviously I have filed one!
By change of circumstances they men things like, did you begin self-employment, do you have any capital gains which need declaring, have you dividend income when you are a 40% tax payer, etc, etc.
If you have just earned a bit more money and have received a bit of interest on savings then I wouldn't worry too much TBH.
Bizarlly (sp?), the Revenue also told me I no longer needed to file a return and I'm self-employed! Obviously I have filed one!
Scooby_snax said:
Well what is the definition of change in circumstances....my income has increased though I am on PAYE, my interest on savings has increased though it is the same accounts and dividends have increased.
So the question is should I do something before the end of January and advise them online?
Cheers
You only need to file a tax return if on Paye if you are a higher rate tax payer (or a director).
If you are a basic rate tax payer, regardless of whether your income has increased by a few thousand, if the payroll at your firm is operating correctly then producing a tax return would merely show a rounding difference of a few pence payable/ refundable.
I am a high rate tax payer....have just spoken to their help desk and have been advised that as they havent sent me a Tax Return to complete then the £100 fine at the end of January will not apply. They said i will probably get a 'short form' return to do sometime in late spring just to bring things inline.
Don't rely on ANY communication or advice for the Revenue. Last year a client of mine was fined £100 even though they had written to her earlier telling her she didn't need to complete a returm. The Revenmue will not stand by any advice they give anyway, especially advice given over the phone..
They should not write these letters as they CANNOT predict your circumsatances based on last year's information - which is what they are trying to do. That's why they go to great lengths to explain in these letters why, even if they have told you they are not sending one to you, it is stil YOUR fault if you fail to file a return when you should have.
I my opinion, ANYONE who pays tax at the higher rates and /or is a company director should ALWAYS file tax returns - especially if they remunerate themselves wholly ar partly through dividends.
They have also muddied the waters terribly by issuing this new style short return. When SA was intoduced in 1996/97., the Revenue hailed it as the end of multiple tax forms. From now on there was only going to be one type of tax return - the Self Assessment tax return. They have obviously now changed their minds. Bear in mind, it is a criminal offence to file a short form if you should really have filed a full Self Assessment return - EVEN IF THEY ONLY SENT YOU A SHORT FORM .
They should not write these letters as they CANNOT predict your circumsatances based on last year's information - which is what they are trying to do. That's why they go to great lengths to explain in these letters why, even if they have told you they are not sending one to you, it is stil YOUR fault if you fail to file a return when you should have.
I my opinion, ANYONE who pays tax at the higher rates and /or is a company director should ALWAYS file tax returns - especially if they remunerate themselves wholly ar partly through dividends.
They have also muddied the waters terribly by issuing this new style short return. When SA was intoduced in 1996/97., the Revenue hailed it as the end of multiple tax forms. From now on there was only going to be one type of tax return - the Self Assessment tax return. They have obviously now changed their minds. Bear in mind, it is a criminal offence to file a short form if you should really have filed a full Self Assessment return - EVEN IF THEY ONLY SENT YOU A SHORT FORM .
Sorry for the thread hijack.
My husband as some of you know works in Iraq, and so is registered with the tax office as being ex pat and not paying tax in this country due to him being home less than 96 days a year. His wage is paid in dollars and goes into an offshore account.
He got a letter from the IR last week saying that they hadn't received his tax return for this year, and if they didn't receive it by 31 Jan he was liable for a £100 fine. He has put all his paperwork in with the IR saying he doesn't earn in this country he did so 18 months ago. And he isn't due back now till the end of Feb, and of course they won't discuss his tax details with me. So where does this leave us?
They also owe him a rebate, which still hasn't shown up.
My husband as some of you know works in Iraq, and so is registered with the tax office as being ex pat and not paying tax in this country due to him being home less than 96 days a year. His wage is paid in dollars and goes into an offshore account.
He got a letter from the IR last week saying that they hadn't received his tax return for this year, and if they didn't receive it by 31 Jan he was liable for a £100 fine. He has put all his paperwork in with the IR saying he doesn't earn in this country he did so 18 months ago. And he isn't due back now till the end of Feb, and of course they won't discuss his tax details with me. So where does this leave us?
They also owe him a rebate, which still hasn't shown up.
Grasswidow, I can't help you on the tax front but if your OH is away at length you should consider getting an enduring power of attorney drawn up which will give you authority to deal with his affairs (let's hope not!!) in his absence. He can alter it to give as much or as little power to you as he wishes and if he wishes he can appoint two attorney's to act together rather than just one (if he doesn't trust you!!).
I have one for my Dad as he's in his 70's and often prefers me to deal with things for him. Also he spends two months of the year abroad and if there are any problems in the meantime I need to be able to deal with them.
It's a very straightforward form which your solicitor can sort out for you, alternatively I can send you a copy of the form although he really ought to get some advice so that he is aware of the power that he is giving to you.
I have one for my Dad as he's in his 70's and often prefers me to deal with things for him. Also he spends two months of the year abroad and if there are any problems in the meantime I need to be able to deal with them.
It's a very straightforward form which your solicitor can sort out for you, alternatively I can send you a copy of the form although he really ought to get some advice so that he is aware of the power that he is giving to you.
Thanks Piglet, was thinking of the power of attorney anyway, we're due to sign on a barn due for conversion in a couple of months, and it will be me dealing with most of that. So it might be worth doing it for his tax dealings as well. Solicitor had already mentioned it due to the barn purchase.
But as to how much power he's giving me, he hasn't got much left to give me, most of its mine anyway.
But as to how much power he's giving me, he hasn't got much left to give me, most of its mine anyway.
Scooby_snax said:
I am a high rate tax payer....have just spoken to their help desk and have been advised that as they havent sent me a Tax Return to complete then the £100 fine at the end of January will not apply. They said i will probably get a 'short form' return to do sometime in late spring just to bring things inline.
A rather odd response from the Revenue .....- if you are a 40 % taxpayer and also have savings interest and divi's , then you would normally have to fill out a self-assessmant form .....as you will owe additional tax. You can just pop down to your local tax office and pick up all the forms if you want to file by 31st Jan.
grass widow said:
But as to how much power he's giving me, he hasn't got much left to give me, most of its mine anyway.
...as it should be!!!
Seriously it is worth having for all sorts of reasons. Get the solicitor to give you a good quantity of certified copies of the POA so that you can send these off when necessary and then leave the original with the solicitor for safe keeping.
As Eric Says if you are a 40% tax payer and receive any income other than through PAYE YOU MUST do a tax return. Ignore what they say as they are generaly wrong. A short from in the spring and no £100, pull the other on it's got bells on. If you did that you'll spend longer trying to tell them were to stick the fine.
The letters they send saying you don't need to do one are stupid.
The letters they send saying you don't need to do one are stupid.
Also need to fill one in if you are a higher rate tax payer and receive company benefits such as private medical cover, company car etc, anything that appears on a P11D, unless it goes through your PAYE as a notional amount. The IR started sending me the short form only after my medical cover moved from my P11D onto the payslip to be taxed at source.
However I reckon if you pay higher rate tax on PAYE, BUT don't have any other sources of income or company benefits on your P11D then you don't need to submit a full tax return.
Surely you can write on the short form anything that you think should be taken into account, such as charitable donations, dividends, interest, capital gains etc. and they either adjust your tax based on that, or send you a full form. That's what I did in September for 2004-5 tax year, still awaiting a reply though.
However I reckon if you pay higher rate tax on PAYE, BUT don't have any other sources of income or company benefits on your P11D then you don't need to submit a full tax return.
Surely you can write on the short form anything that you think should be taken into account, such as charitable donations, dividends, interest, capital gains etc. and they either adjust your tax based on that, or send you a full form. That's what I did in September for 2004-5 tax year, still awaiting a reply though.
munky said:
Surely you can write on the short form anything that you think should be taken into account, such as charitable donations, dividends, interest, capital gains etc. and they either adjust your tax based on that, or send you a full form. That's what I did in September for 2004-5 tax year, still awaiting a reply though.
Generally they don't take an awful lot of notice, just monkeys entering the figures onto the IR system!
Ok decided to do it online as in previous years....have to agree with the above consensus as not all my income can be predicted and again with interest etc thats all at basic rate tax, so as it is unlikely the Tax Man giveth away or not collect everything they can they would come knocking for it at some point.
Would be quite an interesting challenge though having got something in writing that they renege on it.
Would be quite an interesting challenge though having got something in writing that they renege on it.
Grass Widow - if your huisband actually received a Self Assessment tax return for 2004/05 for completion HE MUST complete it and send it back to the Revenue. If they do not get it by 31 January they will AUTOMATICALLY fine him the £100.
However, if he is technically a non UK resident for 2004/05, he will not be liable to UK tax so the £100 fine will not be payable. What he needs to do is submit the return showing NO UK income for the entirety of tax year 2004/05.This will result in a Nil 2004/05 UK tax liability and a cancellation of the £100 fine.
But the return MUST be submitted to get them of his back and to stop them chasing the £100 fine.
However, if he is technically a non UK resident for 2004/05, he will not be liable to UK tax so the £100 fine will not be payable. What he needs to do is submit the return showing NO UK income for the entirety of tax year 2004/05.This will result in a Nil 2004/05 UK tax liability and a cancellation of the £100 fine.
But the return MUST be submitted to get them of his back and to stop them chasing the £100 fine.
Scooby_snax said:
Grass Widow as time seems to be of the essence can your husband not go onto the IR online site and do the necessary?
Only if he's already registered, otherwise he'll have to apply for a password which gets sent by post. Actually I guess it might arrive in time for him to register but it's not a straightforward process!
If he has no tax liability the £100 fine is not chargeable. In this case, it might not matter if the return misses the 31 January deadline.
As I said earlier, if the Revenue go ahead and levy the fine, they will cancel it once the return is submitted and it is obvious that the tax liability is Nil.
As I said earlier, if the Revenue go ahead and levy the fine, they will cancel it once the return is submitted and it is obvious that the tax liability is Nil.
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