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Thread: at what point is it not worth filling in a short assessment tax return?

  1. #1
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    Default at what point is it not worth filling in a short assessment tax return?

    I don't know if this is a question or more of a rant but I know there are PTS who are very knowledgeable on the subject of tax.

    MY OH has filled in a short form of the self assessment tax form for a number of years. Today we got a letter from HMRC to say that based on the info they have this year will be the last year he needs to complete one.

    but nothing has drastically changed so I don't know how they have come to this conclusion.

    MY OH has some shares he inherited from his father about 15 years ago. He gets dividend on these but only 10% tax is paid so he owes the other 30% tax. We also do gift aid for various things. He is a 40% tax payer.

    We also got a 2nd letter which is the self assessment tax calculation for 2014-2015 - there was about £500 in dividends this last tax year so there is another £93 to pay in extra tax and they usually just adjust the tax code.

    so in future is this £93 not worth HMRC collecting or will they do a random audit in 4 years time and ask for 4 years of paperwork and back tax?

    HMRC have previously written to say we don't need to complete a short tax form years back but I got it re instated and my instinct is to do the same again. At their best the shares produced at least £1000 a year in dividends and often more so even though they don't produce a lot now its not to say they will do again.
    Achieved Gold award for my 50th blood donations in12/11. Now 07/03 just given my 62nd blood donations

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    You can always file a tax return online, regardless of whether or not they demand or expect you to do one.

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    I would call their help line and explain what you have said above. The tax rules on dividends change next tax year year and there will be tax to pay on any dividend income over £5k

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    thanks for this - even in the very best of years its never been dividend income of £5K
    Achieved Gold award for my 50th blood donations in12/11. Now 07/03 just given my 62nd blood donations

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    I'm interested in this as my OH was told he didn't need to file one this year, having done one for decades, self employed work alongside full time. He still gets a few hundred a year from this work so it seemed strange to me. Saved me a lot of work though, most of my work is self-employed so it takes me literally days to do mine
    we must live with our enemies as if they might become friends and our friends as if they might become enemies La Bruyere

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    It is a bit odd especially as this is an increasing number of people with a main job plus a part time or more than one part time job or a self employed job

    Its only a hundred or so in tax each year but multiply this by thousands and it does seem to be a lot of money for HMRC to be no longer bothered about.

    and then at which point does the other income become of significant interest to need a tax form again
    Achieved Gold award for my 50th blood donations in12/11. Now 07/03 just given my 62nd blood donations

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    They were scrapped in the budget weren't they?
    Those who think they know it all are very annoying to those of us who actually do.

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    Default at what point is it not worth filling in a short assessment tax return?

    Hmrc link giving criteria here:
    https://www.gov.uk/self-assessment-t...d-a-tax-return

    Yes the plan is to scrap returns in future but there is going to be some sort of online system to replace them!

    If you are in any doubt as to whether you need to complete a return or not, call HMRC and explain your circumstances. HMRC send out notices about completing/ cancelling tax returns required, based on the information they hold on their systems. There is no guarantee the information they hold is correct of course!

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    Quote Originally Posted by mhoc View Post
    I don't know if this is a question or more of a rant but I know there are PTS who are very knowledgeable on the subject of tax.

    MY OH has filled in a short form of the self assessment tax form for a number of years. Today we got a letter from HMRC to say that based on the info they have this year will be the last year he needs to complete one.

    but nothing has drastically changed so I don't know how they have come to this conclusion.

    MY OH has some shares he inherited from his father about 15 years ago. He gets dividend on these but only 10% tax is paid so he owes the other 30% tax. We also do gift aid for various things. He is a 40% tax payer.

    We also got a 2nd letter which is the self assessment tax calculation for 2014-2015 - there was about £500 in dividends this last tax year so there is another £93 to pay in extra tax and they usually just adjust the tax code.

    so in future is this £93 not worth HMRC collecting or will they do a random audit in 4 years time and ask for 4 years of paperwork and back tax?

    HMRC have previously written to say we don't need to complete a short tax form years back but I got it re instated and my instinct is to do the same again. At their best the shares produced at least £1000 a year in dividends and often more so even though they don't produce a lot now its not to say they will do again.
    If your husband has dividend income - AND he is a 40% tax payer then he still needs to submit a tax return. It is only if he is a basic rate taxpayer (or under the basic rate limit) that he would be entitled to not submit a return.

    For people who have multiple jobs - on a PAYE scheme - there is no longer a need for submission of a tax return as PAYE schemes are now all on RTI (real time processing) for tax purposes so each time an employee is paid the total figures year to date per job are updated to HMRC and so they can amend peoples tax codes accordingly as and when extra tax is due.

    Self employed people still also need to submit a tax return - it's not optional.

    More details from HMRC site are listed here:
    2. Who must send a tax return
    The tax year is from 6 April to 5 April the following year.

    Youíll need to send a tax return if, in the last tax year:

    you were self-employed - you can deduct allowable expenses
    you got £2,500 or more in untaxed income, eg from renting out a property or savings and investments - contact the helpline if it was less than £2,500
    your savings or investment income was £10,000 or more before tax
    you made profits from selling things like shares, a second home or other chargeable assets and need to pay Capital Gains Tax
    you were a company director - unless it was for a non-profit organisation (eg a charity) and you didnít get any pay or benefits, like a company car
    your income (or your partnerís) was over £50,000 and one of you claimed Child Benefit
    you had income from abroad that you needed to pay tax on
    you lived abroad and had a UK income
    you got dividends from shares and youíre a higher or additional rate taxpayer - but if you donít need to send a return for any other reason, contact the helpline instead
    your income was over £100,000
    you were a trustee of a trust or registered pension scheme
    Certain other people may need to send a return (eg religious ministers or Lloydís underwriters) - you can check whether you need to. You usually wonít need to send a return if your only income is from your wages or pension.

    If you get an email or letter from HM Revenue and Customs (HMRC) telling you send a return, you must send it - even if you donít have any tax to pay.

    Claiming tax relief
    Fill in a tax return to claim money back from HMRC for:

    donations to charity
    private pension contributions as a higher or additional rate taxpayer, or if your scheme isnít set up for automatic tax relief
    work expenses over £2,500 - if theyíre less and you donít need to send a return for any other reason, contact the helpline instead

  10. #10

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    Thanks Irish very intersting PAYE has gone to real time. I work as an associate for loads of different companies sometimes paying PAYE, mostly not. It will hopefully mean my tax bill at year end is closer to what has been paid now.

    Don't forget if you are a 40 % tax payer (not me sob) then you can claim back 18 % tax for yourself on any charity donations including things like gift aid when you go to museums or stately homes and donations in kind to places like Oxfam (register for gift aid with them and they send an annual statement to you).
    Last edited by Petermo; 29th July 2015 at 13:03.
    we must live with our enemies as if they might become friends and our friends as if they might become enemies La Bruyere

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