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High rate tax
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If you're in the higher rate tax band, do they send out tax forms automatically or are you supposed contact them for one?
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If you are self-employed you would receive a tax return in any event regardless of whether or not you are in the higher tax rate band.
If you are employed you will not automatically receive a tax return merely because you are a higher rate taxpayer. If you feel that it would be in your interests to complete a tax return you can ring the Inland Revenue Orderline on 0845 9000 404 requesting a blank return for completion. You should have your tax reference number to hand when you ring which you can obtain from your wages slips or Form P60 if issued at this stage for the year ended 5th April 2008.Hope this helps you Maidup!
If you are employed you will not automatically receive a tax return merely because you are a higher rate taxpayer. If you feel that it would be in your interests to complete a tax return you can ring the Inland Revenue Orderline on 0845 9000 404 requesting a blank return for completion. You should have your tax reference number to hand when you ring which you can obtain from your wages slips or Form P60 if issued at this stage for the year ended 5th April 2008.Hope this helps you Maidup!
Hi Alcan
Thanks for that. Its my boyfriend who's PAYE and has no complicated tax issues, so wouldn't "benefit" from completing a tax form, just pay more tax on his savings. He's saying that they'd send him a form if he should be completing one, but I was just wondering if he's right or whether we're supposed to do one of our own accord. Didn't want to get behind if we owe a bit more tax.
Thanks for that. Its my boyfriend who's PAYE and has no complicated tax issues, so wouldn't "benefit" from completing a tax form, just pay more tax on his savings. He's saying that they'd send him a form if he should be completing one, but I was just wondering if he's right or whether we're supposed to do one of our own accord. Didn't want to get behind if we owe a bit more tax.
If you think you should be paying more tax then you must tell HMRC. The fact that they do not send you a tax return is no excuse. The safest course is to ask for one and complete it. If there is no more tax due you have not lost and if there is you will only have to pay the tax - not penalties and interest on top when they catch up with you as they will.
Evening Maidup it's me again!
When I initially answered your question regarding tax returns I assumed that you were querying the higher rate tax that your boyfriend is paying as being correct.
However as you have mentioned additional income in the form of 20% taxed at source investment income your boyfriend will now be liable to an additional 20% taxation on this income by virtue of being a higher rate tax payer.
The Inland Revenue are not made aware from third parties of the investment interest paid to taxpayers where it is below a certain figure.
Therefore your boyfriend cannot assume that he does not need to complete a tax return merely because he has not received one.
My advise to you is simple - request a blank return for 2007/08 and for earlier years if necessary - declare all investment income on these returns along with all other income - pay the additional income tax due by way of your voluntary declaration of this income - then you can both sleep at night in the knowledge that you owe nothing to HMRC.
When I initially answered your question regarding tax returns I assumed that you were querying the higher rate tax that your boyfriend is paying as being correct.
However as you have mentioned additional income in the form of 20% taxed at source investment income your boyfriend will now be liable to an additional 20% taxation on this income by virtue of being a higher rate tax payer.
The Inland Revenue are not made aware from third parties of the investment interest paid to taxpayers where it is below a certain figure.
Therefore your boyfriend cannot assume that he does not need to complete a tax return merely because he has not received one.
My advise to you is simple - request a blank return for 2007/08 and for earlier years if necessary - declare all investment income on these returns along with all other income - pay the additional income tax due by way of your voluntary declaration of this income - then you can both sleep at night in the knowledge that you owe nothing to HMRC.
If someone came to me with same question, I would advise them to wait for HMRC to contact them with regards Self Assessment return.
I believe the HMRC would notice your partner is now on the higher rate tax band once they receive his P60. (Around now). This would probably trigger a return to be issued.
I would not complicate things by requesting one. He will not do yourself any harm by not requesting one.
I believe the HMRC would notice your partner is now on the higher rate tax band once they receive his P60. (Around now). This would probably trigger a return to be issued.
I would not complicate things by requesting one. He will not do yourself any harm by not requesting one.
I just had to go and check if this was still the case and it seems so for this year.
Ask him to keep track of any charitable donations he makes. This can be entered onto a return and will lessen his tax liabilty. The amount of the donation will make the normal rate of tax oncrease accordingly before the higher rate sets in.
Ask him to keep track of any charitable donations he makes. This can be entered onto a return and will lessen his tax liabilty. The amount of the donation will make the normal rate of tax oncrease accordingly before the higher rate sets in.
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