I think I should have filled tax returns and I never have, help pls!

Discussion in 'benefits and housing' started by panpete, Jul 22, 2017.

  1. panpete

    panpete Blokes name, birds body.

    Hi
    I'm on ESA contribution based
    I get an I'll health pension of approx £550 a month and I get DLA of more than £2500 a year.
    I just read item 2 on this site Self Assessment tax returns: Who must send a tax return - GOV.UK
    And also as I pay tax cos my ESA plus pension is taxable, although DLA is not taxable, should I have been filling out a tax return, as the government site says "you got £2,500 or more in untaxed income, for example from tips" and my annual DLA of more than the £2500 per year is not taxable?
    I'm worried as I've never filled one out yet.
     
  2. cybershot

    cybershot Well-Known Member

    It's a tax free benefit, the wording is obviously not good, but n, you don't have to pay tax, on an untaxed benefit

    Tax-free state benefits
    The most common state benefits you don’t have to pay Income Tax on are:

    • Housing Benefit
    • Employment and Support Allowance (income related)
    • Income Support - though you may have to pay tax on Income Support if you’re involved in a strike
    • Working Tax Credit
    • Child Tax Credit
    • Disability Living Allowance
    • Child Benefit (income based - use the Child Benefit tax calculator to see if you’ll have to pay tax)
    • Personal Independence Payment (PIP)
    • Guardian’s Allowance
    • Attendance Allowance
    • Pension Credit
    • Winter Fuel Payments and Christmas Bonus
    • free TV licence for over-75s
    • lump-sum bereavement payments
    • Maternity Allowance
    • Industrial Injuries Benefit
    • Severe Disablement Allowance
    • Universal Credit
    • War Widow’s Pension
     
    panpete likes this.
  3. panpete

    panpete Blokes name, birds body.

    Hi cybershot
    Thanks for your reply.
    The CAB site says that it's a tax free benefit, but as my other two incomes are taxable and I get over £2500 in DLA the gov website seems to me to suggest that as it's an over-£2500 taxable income, I should be declaring it, sorry I'm still confused.
     
  4. bemused

    bemused Well-Known Member

    Ring the tax office and ask if you need to fill one out.
     
    ice-is-forming likes this.
  5. panpete

    panpete Blokes name, birds body.

    Yeah I could but I was rather hoping I could save myself the anxiety over the weekend.
    Thanks though plus it will mean a massive bill as I have been on DLA since I was in 2004
     
  6. B.I.G

    B.I.G Well-Known Member

    It applies to 2500 in taxable income.
     
  7. smmudge

    smmudge Sissy that walk!

    When says untaxed income it means stuff that they will want to tax you for if you get over a certain amount of it, but it's untaxed when you get it as it does not go through PAYE or whatever. DLA does not fall into this category, it is a tax free benefit. I assume they are already collecting tax on your pension & ESA so don't worry, you are paying the right amount of tax.
     
    B.I.G likes this.
  8. crossthebreeze

    crossthebreeze Well-Known Member

    You say you pay tax, so HMRC must work that out what tax you need to pay on your taxable income - your ESA and your pension - in some other way.

    There is a difference between untaxed and tax-free - DLA if tax-free - you don't pay any tax on it, even if you had other income which was taxed (and even if this other income was high). They won't want you to fill out a tax return to tell them you're getting DLA.

    By untaxed income, they mean things that they haven't been told about for tax in another way, that you might have to pay tax on. So things like tips - if you were working and your pay went through your employer's books (and they sorted out what tax got paid on it), but your tips went in your pocket. And things like if you sometimes let out a room on airbnb, or doing lots of buying and selling second hand stuff to get a profit, or whatever. But they only want people to tell them if that money is more than £2,500 because they don't want teenage babysitters and people selling a few bits on ebay to have to fill out tax returns.
     
    scifisam and panpete like this.
  9. panpete

    panpete Blokes name, birds body.

    They are collecting tax on ESA and pension, least I think so as contribution ESA is taxable, it's the wording of that gov site that had me panicking.
     
  10. crossthebreeze

    crossthebreeze Well-Known Member

    Your pension provider and the DWP will both be telling HMRC how much they pay out to you (for your pension and your ESA), and HMRC tell them what tax is owed on it and it gets taken straight off your benefits and pension before they pay you, and you should get a P60 from both of them every year. Does that sound familiar? You won't get a P60 for your DLA because it isn't taxable - and it would make no sense for them to sort out tax on your ESA at source and then expect you to fill in a tax return about DLA (which you don't get taxed on)>

    If your taxable income (ie pension + ESA) is less than the standard personal allowance (which is £11,500 this year), you won't be paying any tax at all.
     
  11. bemused

    bemused Well-Known Member

    They sent me a letter every year, every year I rang up and they told me I didn't have to do a tax return. Eventually I had to and it has been a pain the arse ever since.
     
  12. panpete

    panpete Blokes name, birds body.

    Thanks for your reply. I just looked at march 2017 work pension payslip of £544 odd and I only paid £1.80 income tax. In past years I've paid £40 odd to £60 odd in tax.
    I hope HMRC haven't made any more errors cos in the past I've had a couple of tax under payment notices to pay due to their errors.
     
  13. panpete

    panpete Blokes name, birds body.

    Are you self employed?
    Do you get untaxed payment?
    Do you get DLA?
    crossthebreeze clarified things for me but dunno why you are being asked to provide tax returns.
     
  14. panpete

    panpete Blokes name, birds body.

    I get one p60 a yr, I'm crap at paperwork so I just file it on my index file under "t" for tax.
    Does it matter that I only get the one, I think from HMRC crossthebreeze ?
     
  15. Rutita1

    Rutita1 Scum with no integrity, apparently.

    We all only get one Pete.
     
  16. crossthebreeze

    crossthebreeze Well-Known Member

    Yeah, sorry its me getting confused - you get one but it'll have on it details of any tax thats been paid on any of your income.
     
  17. crossthebreeze

    crossthebreeze Well-Known Member

    They've increased the personal allowance by quite a lot recently. I'm paying less income tax than I used to too.
     
    panpete likes this.
  18. panpete

    panpete Blokes name, birds body.

    Thanks Rutita1 I thought crossthebreeze mean ishould get one from HMRC and one from pension provider
     
  19. panpete

    panpete Blokes name, birds body.

    That's good then, shame public sector pay has been pretty stagnant.
     
    crossthebreeze likes this.
  20. bemused

    bemused Well-Known Member

    Because once they ask you to complete one you can't get off the treadmill.
     
  21. panpete

    panpete Blokes name, birds body.

    Why are you being asked though if you don't mind me asking?
    What sources does your income come from?
     
  22. bemused

    bemused Well-Known Member

    Based on my earnings which are bonus based so my taxable income can go higher than the tax code I start the year on.
     
    panpete likes this.
  23. panpete

    panpete Blokes name, birds body.

    I see. Different circumstances to me.
     
  24. Sasaferrato

    Sasaferrato Thank fuck it's not over.

    I can confirm that if a benefit is non taxable, it is non declarable. I get a War Pension, which I do not have to declare on my Tax Return.
     
    A380 likes this.
  25. Pickman's model

    Pickman's model One star in sight

    I get a phwoar pension
     
  26. Sasaferrato

    Sasaferrato Thank fuck it's not over.

    It's enough to pay the Council Tax, holidays and any general things needed like a new fridge etc. It also went up by over eighteen quid a week when I hit 65, which was nice. Make it to 80, and the weekly lift is £42. Gives me an incentive to try and live for another 15 years.

    It will be interesting to see what the years bring.
     
    Pickman's model likes this.
  27. twentythreedom

    twentythreedom Seagulls are cunts

    No it won't
     
  28. Sasaferrato

    Sasaferrato Thank fuck it's not over.

    That's rather a gloomy view.
     
  29. twentythreedom

    twentythreedom Seagulls are cunts

    I suppose it is, yes :(
     
  30. Sasaferrato

    Sasaferrato Thank fuck it's not over.

    If Your bonus and salary takes you over the Personal Allowance there is tax to be paid, however, if you are purely an employee, your company should pay the tax due on your behalf.

    It can be, depending on when bonuses are paid, that there will be some extra tax to pay, if that is the case, get on to HMRC straight away and ask for it to be Coded Out, this means that your Tax Code number will go down slightly, and your employer will send the tax to HMRC. Doing that saves either paying as a lump, or having a credit arrangement with HMRC.

    BTW, if you are Self Employed, and routinely have had Time To Pay for tax due, be a bit careful, there is a crackdown on serial years of TTP, they are trying to break people of the TTP habit.
     

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