HMRC "Stopping Self Assesssment" - what to do?

[JtB]

Taken from the HMRC website:
You need to register for Self Assessment if your income from savings and investments is over £10,000.

 

[figbat]

Even with 100k threshold, if that much of a hated chore, accountant fees are affordable surely

Maybe, but that’s gross income. When you strip out deductions and expenses it soon dwindles.

As I said, there’s a “do I need to self-assess?” questionnaire on the HMRC website. If it comes up “no” but you have been asked to do one there’s another link to “request removal from self-assessment”.

 

[vickster]

Maybe, but that’s gross income. When you strip out deductions and expenses it soon dwindles.

As I said, there’s a “do I need to self-assess?” questionnaire on the HMRC website. If it comes up “no” but you have been asked to do one there’s another link to “request removal from self-assessment”.

if you can't afford to pay a couple of hundred in accountancy fees on a combined gross salary of £200k+, then you probably need some other help with financial management?! Or even an addiction

 

[roubaixtuesday]

OK, so it looks like what I'm supposed to do is phone up HMRC with the dividends rather than do a self assessment

https://www.gov.uk/tax-on-dividends

For savings they work it out with the bank, although how they do this when interest is on a joint account I've no idea (I've always allocated 50:50 to Mrs T and myself).

So I think I'll just carry on doing SA as that's less hassle than taking to them on the phone and more likely to be accurate for savings interest too.

 

[vickster]

OK, so it looks like what I'm supposed to do is phone up HMRC with the dividends rather than do a self assessment

https://www.gov.uk/tax-on-dividends

For savings they work it out with the bank, although how they do this when interest is on a joint account I've no idea (I've always allocated 50:50 to Mrs T and myself).

So I think I'll just carry on doing SA as that's less hassle than taking to them on the phone and more likely to be accurate for savings interest too.

Presumably HMRC would too as they will have both NI numbers?

 

[roubaixtuesday]

Presumably HMRC would too as they will have both NI numbers?

Maybe, but how to they apportion it?

 

[gzoom]

You just ask him/her to complete your tax returns. The accountant will know what questions to ask you.

I just cannot be bothered and have no interest. We did ask someone once and lost interest in what they were saying after about 60 seconds. Login and pressing no or yes as quickly as possible will do me fine, though I just rather be a normal PAYE and not have to bother with any of it.

 

[gzoom]

if you can't afford to pay a couple of hundred in accountancy fees on a combined gross salary of £200k+, then you probably need some other help with financial management?! Or even an addiction

For us is not the fee, but we absolutely have zero knowledge (or interest) in financial management. We just want to do our job and get paid the right amount.

I spend enough time at work looking at numbers, accounts etc etc. I don't want to do that at home when PAYE should just sort it, given how simple our financial situation is.

 

[PaulSB]

I just cannot be bothered and have no interest. We did ask someone once and lost interest in what they were saying after about 60 seconds. Login and pressing no or yes as quickly as possible will do me fine, though I just rather be a normal PAYE and not have to bother with any of it.

It seems you feel you made mistakes last year and got the returns wrong. Obviously this is your choice but an accountant will easily take the stress away for you.

If HMRC smell a rat and come knocking you really will have reason to complain. They can look back seven years.

Long story short I was subject of an HMRC investigation. They found one £60 petrol receipt in my expenses claim. I drove a diesel. I had mistakenly filled my car with petrol. Inside an hour we provided a garage invoice for draining the system.

This tiny incident triggered a 15 month investigation into my business expenses. It was absolute hell. HMRC found nothing.

If you're not interested to ensure your return is correct you run the risk of a great deal of hassle.

 

[gzoom]

If you're not interested to ensure your return is correct you run the risk of a great deal of hassle.

I guess the difference is we don’t claim on any single item, nothing, not a penny. The overpay/underpay calculations came out of the P60 figures so I’m presuming issues from our employer end. Regardless we don’t go to work to than waste time at home with tax calculations, we pay tax and plenty of it.

 

[PaulSB]

I guess the difference is we don’t claim on any single item, nothing, not a penny. The overpay/underpay calculations came out of the P60 figures so I’m presuming issues from our employer end. Regardless we don’t go to work to than waste time at home with tax calculations, we pay tax and plenty of it.

I think I'll make this my last remark. I really have only been trying to help. Your P60 is simply a statement of tax and NI paid, unless you do an SA you can't know if these are accurate. The "issues," if any, aren't with the employer unless the employer makes a mistake. HMRC provides the employer with a tax code based on data you provide, or don't, to HMRC.

In your case I'd instruct an accountant. All you have to do is request "please complete my tax return." If your affairs are as simple as stated that should be that!

 

[Mattk50]

I speak as an Accountant but not in practice. The litmus test is doing a tax return if you feel you have taxable income that HMRC would not be aware of, you earn over £150k gross or you wish to claim taxable deductions like

That one passed me by - I just ran the "do you need to do a self-assessment" questionnaire and came out "no". It seems that, as you say, earning <£150k and dividends/interest <£5k they aren't bothered about.

No. Because the interest you received probably had 20% tax deducted and if you are a higher rate tax payer and received interest over £500 then you need to pay more tax on it.

 

[Mattk50]

I'm in a similar position except I was told no need to do more several years ago but I'm now above thresholds and am finding it a nightmare to reactivate my HMRC self-assessment. Had 3 calls so far and getting nowhere.

Seems (in my case) when they sent the letter saying not needed in future they closed my self-assesment account and it's getting theat re-opened that is proving a challenge.

Ian

Can't you reactivate it again online?

 

[figbat]

I speak as an Accountant but not in practice. The litmus test is doing a tax return if you feel you have taxable income that HMRC would not be aware of, you earn over £150k gross or you wish to claim taxable deductions like

No. Because the interest you received probably had 20% tax deducted and if you are a higher rate tax payer and received interest over £500 then you need to pay more tax on it.

All the interest I receive is not taxed at all (at source). It's up to me to track how much I get and make a tax return if it exceeds the threshold. You can declare to HMRC your income sources (outside of the self-assessment) but I find that interest and dividends are somewhat variable.

 

[Psamathe]

Can't you reactivate it again online?

When I've called them they never said I could. I just get different excuses when I call so I've given-up for now. HMRC are aware of all my taxable income (ie no income from sources that don't report amounts direct to them). Maybe I'll try again at some point.

nb even if I do complete a self-assessment the amount owed will be trivial.

Ian