No need for Self Assessment?

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No need for Self Assessment?

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Nick

Joined: 02 Nov 2004
Posts: 34535
Location: Hereford

Posted: Fri Jan 13, 12 12:37 pm Post subject: No need for Self Assessment?

Quote:

Income above a certain level from savings, investment or property
If you don't already complete a tax return, you'll need to do so if you receive any of the following:
ï¿½10,000 or more income from savings and investments
ï¿½2,500 or more income from untaxed savings and investments
ï¿½10,000 or more income from property (before deducting allowable expenses)
ï¿½2,500 or more income from property (after deducting allowable expenses)

So, if I'm reading this right, if you make less than ï¿½2,500 profit, you don't have to pay any tax on it. Is that right?

Clearly, I could ring them, but it takes forever in January.

From https://www.hmrc.gov.uk/sa/need-tax-return.htm

Anyone know?

onemanband

Joined: 26 Dec 2010
Posts: 1473
Location: NCA90

Posted: Fri Jan 13, 12 8:33 pm Post subject:

I think what they are saying is you don't have to fill out a return, not necesserily that you don't pay tax.
Savings and investments are also on the list and they are usually taxed before you recieve interest.

As to wether there is a ï¿½2500 tax free allowance on rental property I don't know. I would guess that if you are paying income tax, any profit from 2nd property rental is then taxed at normal rate.

I do know you can earn upto ï¿½4250 tax free (regardless of other income) under the rent a room scheme. That is renting a room in the house you live. I enter this in my return - it is simply one box to tick.

Nick

Joined: 02 Nov 2004
Posts: 34535
Location: Hereford

Posted: Fri Jan 13, 12 8:37 pm Post subject:
But without a return, theres no way to pay the tax. You wouldn't have a UTR, for example. Clearly any tax would be at the rate you'd expect, but how would you pay without filing a return? I'll ring them in about April.

Treacodactyl
Downsizer Moderator

Joined: 28 Oct 2004
Posts: 25795
Location: Jumping on the bandwagon of opportunism

Posted: Fri Jan 13, 12 9:25 pm Post subject:

When I finally managed to stop having to fill out the full self assessment forms I still had to fill out a one or two page form that listed incomes.

I assume you'll get sent such a form and then the tax you owe will be collected via PAYE via a new tax code.

A word of caution though, try and find out what you need to do because it's no unheard of for them to send out a self assessment form which you will then have to fill in.

Nick

Joined: 02 Nov 2004
Posts: 34535
Location: Hereford

Posted: Fri Jan 13, 12 9:46 pm Post subject:
Oh, I do self assessment, I just saw it on a page, and wondered.

onemanband

Joined: 26 Dec 2010
Posts: 1473
Location: NCA90

Posted: Fri Jan 13, 12 9:54 pm Post subject:
a short tax return (sa200) ?

Nick

Joined: 02 Nov 2004
Posts: 34535
Location: Hereford

Posted: Fri Jan 13, 12 10:01 pm Post subject:
Aha.

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