Tax - Self Assessment

[London Irish]

What is the higher tax bracket - I've never been issued with a tax return but I get a leaflet a few months ago teling me that I can fill in a tax assessment online. Is this a scary sign they might be on to me?

Like everyone in my family has been trained to do when confronted by officialdom of any kind, I chucked the leaflet in the bin and moved my caravan to the next town.

 

[tinx]

I have been in the highest tax bracket for a while now and have not been caught yet. One of my colleagues got caught and had to do a years worth of it owe dnothing and he just does it on a yearly basis so I am not too worried about it, I am expecting to be caught out by them at some point

 

[Artois]

What is the higher tax bracket - I've never been issued with a tax return but I get a leaflet a few months ago teling me that I can fill in a tax assessment online. Is this a scary sign they might be on to me?

Like everyone in my family has been trained to do when confronted by officialdom of any kind, I chucked the leaflet in the bin and moved my caravan to the next town.

In order to hit the higher rate tax band, your earnings in a tax year need to exceed £35,115 (2003/04).

Earnings include Gross Salary, P11D benefits, interest received, Dividends etc etc.


Tinx - Are you just on PAYE, or do you have benefits / dividends etc?

 

[Dick Knights Mumm]

I have had to fill in a tax form every bleedin year for both me and my darling for as long as I can remember. 1985 at least.

I am not bitter though.

 

[Barnet Seagull]

Phew!

I was a little worried but now I'm not.

Seems you don't have to declare any lodging income under £4k in certain circumstances.

So it'll be a one-pager for me.

 

[tinx]

In order to hit the higher rate tax band, your earnings in a tax year need to exceed £35,115 (2003/04).

Earnings include Gross Salary, P11D benefits, interest received, Dividends etc etc.


Tinx - Are you just on PAYE, or do you have benefits / dividends etc?

I'm on PAYE but I do have private medical which is the only thing that appears on my P11D

 

[Guinness Boy]

Bugger.

How are you supposed to know this though? I bloody didn't?!?

Ask Pete C. If you can find his lucid moment.

 

[GUNTER]

Can anyone recommend a good, resonably priced accountant?

 

[The Antikythera Mechanism]

ry TaxCalc. Its free if you don't complete your tax return in 30 minutes.
TaxCalc

 

[CAFC Matt]

Students don't pay any

 

[Barnet Seagull]

OK here's a theroetical question, as I'm looking to rent out another room.

Say I have two lodgers in a house I'm a 50% shared owner of.

They pay £500 p.c.m into a joint account. held by the owners.

The earnings therefore are £6000 a year (higher than the tax exempt threshold of £4300 odd)

Does this income get split between the owners (i.e, £3000 a year) thus under the allowance.?

 

[Easy 10]

The train to Kentucky would be doing 88mph.

 

[aftershavedave]

as long as the joint owners are not connected then the answer is yes barnet.

 

[London Calling]

Bugger.

How are you supposed to know this though? I bloody didn't?!?

I had three days to do three years worth.

For anyone else if your salary is around £35000 you may also get caught out.

Legally the onus is on you to do a self assessment.

LC

 

[Barnet Seagull]

as long as the joint owners are not connected then the answer is yes barnet.

Ok, what if it's a family member?

 

[Seagull over NZ]

To all those in a panic about being a higher rate tax payer. If you don't have other income and benefits outside of work (ie you only pay PAYE and get P11D benefits) then you won't need to do a tax form.

Its when you have dividends, interest, other ince etc outside of work where the source only deducts basic rate tax. Then you have to do a tax form to pay over the remaining tax as its all payable at the higher rate.

 

[Seagull over NZ]

Ok, what if it's a family member?

If you are talking about the personal allowance limit of £4,615 then it shouldn't matter as the other family member will have their own allowance. Thats why its always advantageous if you have a spouse who doesn't work becuase your income you get from savings etc can be in a joint name and then the interest shared so you use the personal allowance of your spouse.

 

[London Calling]

Oh Yes the IR forms online are not yet MAC user friendly

LC

 

[Artois]

OK here's a theroetical question, as I'm looking to rent out another room.

Say I have two lodgers in a house I'm a 50% shared owner of.

They pay £500 p.c.m into a joint account. held by the owners.

The earnings therefore are £6000 a year (higher than the tax exempt threshold of £4300 odd)

Does this income get split between the owners (i.e, £3000 a year) thus under the allowance.?

No, unfortunately not.

If you share the income, the exemption will be £2125 for each of you.

If your share of the income exceeds £2125 (which in your example it does) then you have two options:


1) Paying tax on the amount by which your share of the gross rent exceeds £2125, or

2) Calculating your profit from letting in the normal way (including expenses) without the exempt amount.

 

[Seagull over NZ]

Barnet - have a look at this:

http://www.inlandrevenue.gov.uk/pdfs/ir87.pdf

I think you were talking about the rent free allowance - looks like it gets halved.

Don't forget that if you rent out a house you can deduct a number of expenses such as the insurance, council tax (if you pay it) etc as well as a depreciation/ wear and tear allowance