Quick Self Assessment Question
Discussion
Well it appears I've forgotten to do my SA for year ending 09 (I know!), I'm trying to file online but I'm a trust beneficiary.
Where it asks me "Did you receive any dividends, for example, UK companies, authorised unit trusts, open-ended investment companies, foreign companies (up to £300)?" do I put Yes or No as I recieved a (small) trust payment?
Thanks!
Where it asks me "Did you receive any dividends, for example, UK companies, authorised unit trusts, open-ended investment companies, foreign companies (up to £300)?" do I put Yes or No as I recieved a (small) trust payment?
Thanks!
t84 said:
Well it appears I've forgotten to do my SA for year ending 09 (I know!), I'm trying to file online but I'm a trust beneficiary.
Where it asks me "Did you receive any dividends, for example, UK companies, authorised unit trusts, open-ended investment companies, foreign companies (up to £300)?" do I put Yes or No as I recieved a (small) trust payment?
Thanks!
Sounds like the answer is "Yes".Where it asks me "Did you receive any dividends, for example, UK companies, authorised unit trusts, open-ended investment companies, foreign companies (up to £300)?" do I put Yes or No as I recieved a (small) trust payment?
Thanks!
Is the trust income you receive net of tax deducted at source?
Do you receive any sort of income document (such as a Tax Certificate) from the Trust Administrator?
Are you a higher rate tax payer?
t84 said:
Also, can I use the HMRC online software to file details of trust payments?
I assume you are still talking about entering income details on your own personal Self Assessment tax return - rather than asking a question about having to file a Self Assessment tax return on behalf of a trust?Sorry yes, I mean on a Personal SA.
Is a payment from a Trust a dividend?
I do recieve a statement at the end of the year from the trust showing how much tax has been paid, etc.
I'm not a higher rate tax payer.
I really don't know why I have to Self-Assess really, I don't ever owe any tax, I went to my tax office to reclaim some tax I overpaid years ago, and the woman told me I have to Self Assess, I've tried to appeal the decision but they just say "If we've sent you one you have to fill it out".
The 08/09 return totally escaped my mine until I just got an utter rollicking from themselves this morning over the phone.
Is a payment from a Trust a dividend?
I do recieve a statement at the end of the year from the trust showing how much tax has been paid, etc.
I'm not a higher rate tax payer.
I really don't know why I have to Self-Assess really, I don't ever owe any tax, I went to my tax office to reclaim some tax I overpaid years ago, and the woman told me I have to Self Assess, I've tried to appeal the decision but they just say "If we've sent you one you have to fill it out".
The 08/09 return totally escaped my mine until I just got an utter rollicking from themselves this morning over the phone.
HMRC are correct - once the notification to make a return is issued, you have to complete the form and send it back - either on paper (by 31 October) or on-line (by 31 January).
Regarding your trust income, it is what it says, "Trust Income". It is not a dividend as such.
However, the rate of tax deducted at source on trust income depends on what type of trust income it actually is. Some trusts pass on income as if it was a dividend. Some will pass it on in the form of interest. Some will be rental income. Some might even be in the form of a Capital Gain. Different rules apply to all these different types of income.
Next question, what type of trust income is it?
Regarding your trust income, it is what it says, "Trust Income". It is not a dividend as such.
However, the rate of tax deducted at source on trust income depends on what type of trust income it actually is. Some trusts pass on income as if it was a dividend. Some will pass it on in the form of interest. Some will be rental income. Some might even be in the form of a Capital Gain. Different rules apply to all these different types of income.
Next question, what type of trust income is it?
What does your tax certificate show? In other words, what does it say regarding any tax deducted at source on the amount you received and at what rate was this tax calculated?
Does it say anything on the certficate about how you should show this income on your Self Assessment form?
Does it say anything on the certficate about how you should show this income on your Self Assessment form?
Edited by Eric Mc on Friday 7th May 14:25
Hi Eric, I'll have a look when I get home, if I can't file online it doesn't matter, I bought a copy of Ftax a while ago for the correct tax year, but I don't really understand what I'm doing and the SA website appears to make it easy...
Many thanks for your help,
Toby
Many thanks for your help,
Toby
Edited by t84 on Friday 7th May 14:29
There is a chance that you might have paid too much tax - depending on how much tax was taken out at source on the income from the trust. I would expect that you probably do not have a Self Assessment tax liability for 2008/09 and therefore you should not be liable for the £100 late filing penalty.
Eric Mc said:
There is a chance that you might have paid too much tax - depending on how much tax was taken out at source on the income from the trust. I would expect that you probably do not have a Self Assessment tax liability for 2008/09 and therefore you should not be liable for the £100 late filing penalty.
Can you explain that further Eric?I have been filing zero return (no uk based earnings apart from on one Uk property that is rented out which has always been assessed at zero rate).
I did not receive the 08/09 tax return and recently had a penalty notice served (quite why they stick a 2nd class stamp on something going overseas eludes me) saying I had failed to return the forms.
I have returned this with an explanatory note, pointing out that I never received it or the reminders and as I have been continually assessed at zero thought nothing of it.
I would expect that I again have no Self Assessment liability, but would like to know why that would exempt me from the late filing fine?
Thanks and sorry for hi-jack.
Under the penalty rules in place for tax years up to and including tax year 2008/09, the late filing penalty could only be charged IF there was an actual tax liability due to be paid at 31 January. The penalty was the maximum of £100 or the amount of tax payable at 31 January. For example, if you owed £95.39 tax, then the maximum penalty was £95.39. If you owed £15,025.45 tax, the maximum penalty was £100.00. If you had no liability, then the penalty was nil. If a penalty had already been charged, once it had been ascertained that no tax was actually due by 31 January, the penalty would be cancelled.
A new penalty regime is now in place which, in theory, means that HMRC MIGHT charge the £100 penalty irrespesctive as to whether the taxpayer had to pay any tax by 31 January. It is not absolutely clear whether HMRC is planning on applying this rule as many of us thought it would apply to the 2008/09 tax return too - but they didn't apply it for those returns.
A new penalty regime is now in place which, in theory, means that HMRC MIGHT charge the £100 penalty irrespesctive as to whether the taxpayer had to pay any tax by 31 January. It is not absolutely clear whether HMRC is planning on applying this rule as many of us thought it would apply to the 2008/09 tax return too - but they didn't apply it for those returns.
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