Pensioner Income Over Tax Free Allowance

[DDIL]

My neighbour asked for my help at the weekend with some paperwork.

We were working out her income and I discovered it was over the tax free allowance by £600.

Looking back on previous years as far as I could go - her income has always been over the allowance, but she has never completed a tax return.

Her attitude is she paid enough in during the 15 years she was a business owner so why should she give them more now!

What are the chances of her getting caught?

Thank you

[davebro3]

no need to get all uppity - you got your advice....

[Peter Pedant]

yeah I dont think anyone has asked me for tax advice and then dumped a years worth of figures...

she has never filled out a tax form yet ran a business and paid tax on it - hem hem so THAT can't be true

well the tax due here is £120 - going back six years it is £720. she shd.  check that to be honest....I think this is the first year ( hence her seeking advice)- and the penalty wd be £300 taking it up to a round £1000 ( in a voluntary declaration, which I have actually done)

and she then after has to make out a tax form every year in perpetuity - I think as usual we on AB are getting half the story

[DDIL]

Peter Pendent - I meant she has never filled out a tax return to declare income over her pension.

As a business owner someone did it for her - so again not filled out a tax return.

[Peter Pedant]

As a business owner someone did it for her - so again not filled out a tax return.

come on come on - that someone is called an accountant.... and yes in law she ( would be) deemed to have filled out a tax return and so cd easily have done it again

( I did ) - yes, I think I wd say " yes it looks like you owe £120 a year recurrently and I dont know what you do about it"

[Peter Pedant]

Perhaps you should report her in case you are treated as an accomplice! 

nope - no duty to report someone else you are unconnected with ( durrr!) - no AB jokes about tax please like : ( no one on AB pays tax so tell her to go and fire-bomb the local tax office ! ahahahahahah) foo!

[DDIL]

I was more concerned about what would happen to her for not completing a tax return.

I have never said I would report her despite me not agreeing with her.

I did rough calculations based on the information provided to me.

It is no wonder that the most questions on this site is slating the government, asking what job or top to wear/take or other such tripe!

 

[Peter Pedant]

I came here to ask advice and I am not sharing financial information other than where her income is coming from 

then we can't give sensible advice ( and THAT may have been the  old bat's intention)

actually I have re-read all the posts of this thread including the crass one liners like " foo don't pay, yeah!"

and I think you should keep to "yeah you're over the limit" and then back away.

as for fifteen years of a foreign  pension - it is clear she  has made a decision not to declare income over the  long  term.

( paying tax and filling out a tax return and then retiring and securing permission NOT to fill out a tax return is an involved process - which MAY have involved in making a false declaration ( "I did have income greater than X and now I dont"). It is NOT a case of just not sending in that years tax return

and.... I dont think I wd get involved in a silly old girl saying she doesnt have income er when she does ! long term

[ in short getting permission NOT to send in a tax return when you have previously is a hurdle and an involved process and not just a whoopsie I forgot ]

stinks -  and even explains whe she has asked a walk in to tot up her income when she has had an acct to do it  for her previously

 

[Peter Pedant]

from what you say she does'nt even want to, so how about minding your own business.

yeah - it does seem to be a dear old pensioner saying " I want more free untaxable loola like all the other pensioners"

and you saying " I am sorry you owe tax as it is!"

[Maydup]

I think the chances of her getting caught are slim, but HMRC do receive details of private pensions and interest from savings,  so it's not a zero chance.

However the penalty is likely to be minimal and not worth them following up on.