Tax - Self Assessment

[Bozza]

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.

But even if you only have a basic current account yoy will receive a small amount of interest where tax has been deducted at basic rate. This could mean you owe the IR a few pence. On this basis should you be filling out a tax return?

 

[ben andrews' girlfriend]

anyone else highly confused?? i'm going to go back to my coursework for the easy life!!

 

[Deano's Right Foot]

It can also work for you. If you pay into most types of personal pension schemes you get 22% added to your pension contribution at source in lieu of the tax. If you are a 40% tax-payer then you get an additional 18% (diff between 22% and 40%) set off against your tax bill, and you normally claim this on your tax return, and you could end up getting a refund.

 

[Giant Seagull]

TAXES what are they then?

 

[Barnet Seagull]

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

That's the puppy. Cheers.

 

[Seagull over NZ]

But even if you only have a basic current account yoy will receive a small amount of interest where tax has been deducted at basic rate. This could mean you owe the IR a few pence. On this basis should you be filling out a tax return?

True - but it shouldn't be too complicated. You can request from the bank a summary which they will give you details of interest earned, tax deducted etc.

Apparently a mate of mine who does it over the internet says the IR's internet submission is way easier than the manual forms - ie. if you have your P60 summary of earnings together with the banks interest summary and whatever other interest you have, its hard to go wrong.

 

[Artois]

We did over 200 returns over the internet this year and it's much simpler IMHO.

You get an immediate tax calculation confirmed and if you are due a refund, the cheque is automatically issued, without waiting weeks/months for some pencil pusher to get off their arse and do it.

 

[Beach Hut]

As soon as you move into the higher tax bracket they've got you.

I go skinned a year or so ago but now having transferred various things am OK.

 

[mk_bha]

i am thinking of quitting my job and getting something LESS PAID!

yes, thats true.

40p in the pound to pay for immigrants and lazy scumbags. hmmm gets to me every day.

I Could get a job which gave less stress, less hassle, took less time and gave less pay. The lower pay would mean a lower tax bracket so i wouldnt be too far worse off.

ppl on the radio the other day admitted to giving up high paid jobs because it isn't worth it.

or i could negotiate a 4 day week hmmm - the mind boggles.

 

[London Calling]

i am thinking of quitting my job and getting something LESS PAID!

yes, thats true.

40p in the pound to pay for immigrants and lazy scumbags. hmmm gets to me every day.

I Could get a job which gave less stress, less hassle, took less time and gave less pay. The lower pay would mean a lower tax bracket so i wouldnt be too far worse off.

ppl on the radio the other day admitted to giving up high paid jobs because it isn't worth it.

or i could negotiate a 4 day week hmmm - the mind boggles.

APART FROM YOUR IGNORANT RACIST BOLLOCKS

I HAVE MOVED TO A 4 DAY WEEK, ITS BRILLIANT, YES I EARN LESS BUT I HAVE A THREE DAY WEEKEND, TO SPEND WHAT I EARN.

LC

 

[The Clown of Pevensey Bay]

I was self-employed for eight months or so after leaving university, and only really understood the whole thing from what other people had told me.

When I did a tax return, I'd been quite careful to keep receipts and log mileage, then I filled it in online... which was still quite confusing.

I'd done the sums in my head, and thought I was in line for a rebate, or at worst a very small bill.

Then earlier in January I got a bill for eight hundred quid. How marvellous.

Luckily, I'm now employed so they've adjusted my tax code and the money will come out of my payslips from April.

 

[Simster]

I'm self employed and basically just tax myself 40% on my earnings, leaving 20% in the business account to pay for corporation tax and 20% in a savings account which cunningly offsets against my mortgage until the IR come knocking.

I then pay my accountant £40 to do my self assessment. Then hey presto! I get a rebate every year since there is no way I owe 40% on my total earnings. My rebate paid for my new kitchen last year.