Tax form advice for 2006! (revived thread)

[Mrs Magpie]

Oh good. I started to get a bit paranoid.

 

[Pingu]

*Reads thread*

Thanks the lord she isn't SE

Good luck y'all

tbh its a piece of piss

step 1

get an accountant

step 2

answer their questions

step 3

sign bits of paper

step 4

pay less tax than if you hadnt done step 1




I have paid fuck alll in the way of income tax in that past 4 years because of having a decent accountant. I have paid tax in other means but its at a lower rate than the income tax rate.

most of my income is treated as dividends and has corporation tax paid on it at 19%. Only a small amount is treated as earnings - just enough to go over the LEL for NI so I maintain a full contribution record

 

[J77]

I haven't teceived any reply from the tax office for my last two correspondances - both to demonstarte that I hadn't worked in the UK for the full tax year (once in 2002/3, once 2005/6).

Is this normal? Do they always take forever to reply?

 

[Mrs Magpie]

If anyone needs a great accountant who isn't expensive PM me. My husband has used her for years. She's a star.

 

[William of Walworth]

PAYE -- sanity saver.

There were some Inland Revenue ads a while ago encouraging people to switch to self assessment, what was all that about then? Surely if you're in PAYE you're in it, and would have no rational reason on earth to switch to the pain and anguish of self assessment/annual tax returns unless you were mad (or had no choice).

My brother's self employed, and got into big trouble a few years back for letting his accounts get into a right old state -- he ended up being busted for several grand. Nowadays one of his muso mates who's also an accountant, helps him woith the returns,. He says that's the only way he can endure the process, because, like me, he finds figures and tax systems very confusing.

 

[Hollis]

PAYE -- sanity saver.

There were some Inland Revenue ads a while ago encouraging people to switch to self assessment, what was all that about then? Surely if you're in PAYE you're in it, and would have no rational reason on earth to switch to the pain and anguish of self assessment/annual tax returns unless you were mad (or had no choice).

If you're a higher rate tax payer, have more than 1 income, investments, rent out property, then you have to self-assess.

 

[Spymaster]

I work for an agency and it's PAYE. I've never had a self-assessment form ever. Should I?

You do if you pay higher than basic rate tax or if you gave any other form of income (rent, shares, savings interest etc.)

 

[William of Walworth]

If you're a higher rate tax payer, have more than 1 income, investments, rent out property, then you have to self-assess.

You have no choice?

I'm not in any of those categories and am unlikely to become so any time soon.

I still don't understand that advertising campaign from a while back that as I imperfectly remember, was encouraging people (or at least it looked like that!) to switch to self assessment. As if there WAS a choice for some categories of folk between PAYE (?) and self assessment, and as if (even more implausible) it made more sense to bring down all that pain on yourself when you didn't have to.

 

[Mrs Magpie]

The only savings I've got is in Premium Bonds and they're tax-free. Classroom Assistants will never reach the higher tax-bracket.

 

[Hollis]

You have no choice?

I'm not in any of those categories and am unlikely to become so any time soon.

I still don't understand that advertising campaign from a while back that as I imperfectly remember, was encouraging people (or at least it looked like that!) to switch to self assessment. As if there WAS a choice for some categories of folk between PAYE (?) and self assessment, and as if (even more implausible) it made more sense to bring down all that pain on yourself when you didn't have to.

The main reason for the advertising is to get people to fill in their returns on time, so they don't get the automatic £100 penalty. - I don't think you do get any choice.. as I can't imagine many people voluntarily doing it.

However they've now introduced a short 4-page tax return for people in the above categories with failry simple tax affairs.


"If you receive a tax return do you have to complete it?

Yes - even if you pay all your tax through PAYE. A tax return is sometimes required for other reasons, for example to check if the correct tax has been paid overall. So if you are sent a tax return, you must fill it in and send it back even if you believe that you have no extra tax to pay."

 

[rennie]

If anyone needs a great accountant who isn't expensive PM me. My husband has used her for years. She's a star.

we're going self- employed in June and I am only just starting to get to grips with all the tax stuff.

PM on its way Mrs M.

AND as we'll be working from home does it mean that I need to save all the receipts from rent/bills/groceries/transport?

fuckign headache.

 

[rennie]

Oh and another question related to tax. I work 9 to 5 and pay PAYE taxes but the other half will be starting his own business.

Will that affect his tax returns? and if so, how?

 

[William of Walworth]

The main reason for the advertising is to get people to fill in their returns on time, so they don't get the automatic £100 penalty. - I don't think you do get any choice.. as I can't imagine many people voluntarily doing it.

However they've now introduced a short 4-page tax return for people in the above categories with failry simple tax affairs.


"If you receive a tax return do you have to complete it?

Yes - even if you pay all your tax through PAYE. A tax return is sometimes required for other reasons, for example to check if the correct tax has been paid overall. So if you are sent a tax return, you must fill it in and send it back even if you believe that you have no extra tax to pay."

Thanks for that, I'm either massively misremembering the IR campaign (always
possible ) or we're talking about different ones ...

 

[J77]

I haven't teceived any reply from the tax office for my last two correspondances - both to demonstarte that I hadn't worked in the UK for the full tax year (once in 2002/3, once 2005/6).

Is this normal? Do they always take forever to reply?

Weirdly, just got a letter to say they're giving me over 700 quid back + whatever for this tax year

 

[editor]

I'm going through my bank balances now. It's a fucking living nightmare.

 

[marty21]

i'm glad i'm on paye, it's enough of a nightmare when i have to find all the paper work to renew my car tax once a year

 

[discplayer]

Am trying to do it for the first time. Or I would be if they didn't keep posting stuff to an old address. Four times I've told them! I don't hold out much hope of getting the activation password this time either. I suspect they will get the address right in time to ask for the £100 penalty.



I need a smiley depicting high blood pressure and impending heart attack!

 

[Mrs Magpie]

I'm now in a panic because I do (unpaid) work for three voluntary organisations, two of which I'm a director of. I've just been told that because I'm a director even though I've never made a penny, or claim expenses from them, that I have to pay NI in respect of those, rather than NI just for the times when I get paid work from the agency.

 

[EastEnder]

Tax should be banned.

Guess who's just had to take out a big loan to cover the tax bill he rather foolishly didn't bother calculating until last night........

Looks like February's going to be a rather frugal month.

 

[pinkmonkey]

I just paid my tax bill today - tumbleweed is now rolling through our joint savings account and half my possessions are on ebay.

 

[EastEnder]

I just paid my tax bill today - tumbleweed is now rolling through our joint savings account and half my possessions are on ebay.

(((pinkmonkey)))

At least you could pay it.

I've really got to take my personal accounting practices beyond the level of assorted Post-It notes..........

 

[rorymac]

I have loads of messages from my accountant about today being the last day to post off my return but I decided to do it myself this year. Well it's money for old rope and I now try to plan beyond next week where possible. I find it very difficult and I hate it actually but this year's return is simple as I earned practically nought ie minus nought. : - / That's it.
Now I have an hour or so to decide whether I do it or ring the accountant.
Are you scrutinised more if you suddenly do your own return ? .. I can copy what the accountant always does with the adjusted figures .. it would take about 5 minutes and it would be correct too. I have nothing to hide etc etc but if I knew I was more likely to be given the once over then I wouldn't do it myself.
I also now have to post it as my activation pin is not usable to do the tax return . I applied for it yesterday. If I post it tomorrow is it too late ?

 

[Looby]

I have loads of messages from my accountant about today being the last day to post off my return but I decided to do it myself this year. Well it's money for old rope and I now try to plan beyond next week where possible. I find it very difficult and I hate it actually but this year's return is simple as I earned practically nought ie minus nought. : - / That's it.
Now I have an hour or so to decide whether I do it or ring the accountant.
Are you scrutinised more if you suddenly do your own return ? .. I can copy what the accountant always does with the adjusted figures .. it would take about 5 minutes and it would be correct too. I have nothing to hide etc etc but if I knew I was more likely to be given the once over then I wouldn't do it myself.
I also now have to post it as my activation pin is not usable to do the tax return . I applied for it yesterday. If I post it tomorrow is it too late ?

It will generally only be scrutinised if you have claimed something you didn't last year or changed something but you said you haven't so unless you are subject to a random check then you should be fine.

If you're going to post your tax return send it special delivery so you can guarantee it will arrive the next day, or hand it in to your local tax office.

 

[radio_atomica]

(((pinkmonkey)))

At least you could pay it.

I've really got to take my personal accounting practices beyond the level of assorted Post-It notes..........

You think it's difficult to do your own accounts at work I have to do the VAT 4 times a year, prepare the end of year accounts for the company and the Inland Revenue returns for a payroll of about 500 staff and most of my colleagues haven't grasped the concept of post-it notes yet The answer, I've found, is to start planning early...

 

[Paul Russell]

A few years ago Brown brought in a thing where you could treat all computer equipment and software that you used for your business as 100% expense rather than farting around with capital allowances.

Does that still apply? I bought an external hard drive for back-ups.

 

[equationgirl]

I'm now in a panic because I do (unpaid) work for three voluntary organisations, two of which I'm a director of. I've just been told that because I'm a director even though I've never made a penny, or claim expenses from them, that I have to pay NI in respect of those, rather than NI just for the times when I get paid work from the agency.

I found this on the Inland Revenue site FAQs:

Q. Do all directors have to complete a Tax Return?

A. There are a few directorships where Tax Returns do not need to be completed for the reason of the directorship alone. Returns will not be required from directors of companies: –

set up for charitable purposes, or that are neither profit making nor trading and
that do not make payments in any way or provide any company benefits for the directors.
The following are examples of these -

directors of Community Amateur Sports Clubs (CASCs),
directors of companies set up by tenants to manage freeholds,
nominal directorships (e.g. school governors),
provided that their affairs do not otherwise require them to complete returns. If you are in any doubt you should contact your tax office.

I don't think you need to do an SA.

NI contributions are calculated on director's salaries and payments, so if you're not receiving any payments or salaries for your directorship, no NI contributions would be payable, since a percentage of zero is still zero.

 

[eme]

A few years ago Brown brought in a thing where you could treat all computer equipment and software that you used for your business as 100% expense rather than farting around with capital allowances.

Does that still apply? I bought an external hard drive for back-ups.

It ended the tax year 03 / 04 I think - now it is 40% of what it cost, then you work out what percentage you use it for work... then in following years you do some crazy jazz like calculations for depreciation... (haven't got there yet!)

 

[editor]

A few years ago Brown brought in a thing where you could treat all computer equipment and software that you used for your business as 100% expense rather than farting around with capital allowances.

That ended last year, IIRC.

It's 50% now minus whatever percentage you use it for personal use (so it if cost £100, you can claim £50, but if 10% of its use is personal, you have to take that off, leaving you with a £45 claim).

You can also claim a percentage back the following year, although it involves so much pissing about that you end up with virtually nothing.

 

[Paul Russell]

That ended last year, IIRC.

It's 50% now minus whatever percentage you use it for personal use (so it if cost £100, you can claim £50, but if 10% of its use is personal, you have to take that off, leaving you with a £45 claim).

You can also claim a percentage back the following year, although it involves so much pissing about that you end up with virtually nothing.

Cheers. It only cost £89 so it won't make a load of difference to my bill, unfortunately especially as it's sort of for personal use as well.

I don't usually leave it quite this late so I'm panicking a bit. Just want to get rid of the thing.

I thought this thread would be buzzing with people. I must be last...

 

[Paul Russell]

then in following years you do some crazy jazz like calculations for depreciation... (haven't got there yet!)

Yeah, I'm still claiming a tiny amount of (every decreasing) capital allowance for a laptop I bought umpteen years ago.