Is it easy to fill in a tax return?
Discussion
raptor600 said:
If you just have to put on PAYE and no other income - it really couldn't be simpler.
Not always. PAYE earners can have quirks and traps that they might want to watch out for - usually to do with complications to their PAYE tax coding - such as benefit in kind details
declaration of expense payments received already returned on P11ds
collection of PAYE tax arrears through the PAYE coding system
claims for pension contributions
claims for charity contributions
Deva Link said:
If your affairs are straightforward and you've got your P11D, if appropriate, and P60 in front of you then it takes about 10 mins.
Keep a note of the figures you input.
Agreed. Although 10 mins feels optimistic I certainly take less than 1 hour including digging out the paperwork - P60, P11D, interest on bank accounts (minimal but I like to be thorough), gift aid donations through the year, log in details for HMRC. And doing a rough check on the end result to make sure the extra HMRC is demanding from me is about right.Keep a note of the figures you input.
Eric Mc said:
People who are concerned about losing their child allowance may want to consider some form of legitimate means to enable them to declare reduced gross income. This is particularly relevant to those who are at or just above the £50,000 threshold.
Such as increasing pension and charitable contributions being the most common.David
Zigster said:
Agreed. Although 10 mins feels optimistic I certainly take less than 1 hour including digging out the paperwork - P60, P11D, interest on bank accounts (minimal but I like to be thorough), gift aid donations through the year, log in details for HMRC. And doing a rough check on the end result to make sure the extra HMRC is demanding from me is about right.
I did mine on paper the other day. The OP says he's on PAYE with no other income (same as me, except mine is split salary and dividends) and his saving are in ISAs (same as me, everything else belongs to my wife). I have pruvate medical cover, and put in an amount for gift aid.So I only have 5 boxes to fill in - salary, tax, dividend, medical and gift aid. I always hesitate on the dividend as you used to have to gross it up, but you don't even have to do that now.
It CAN be simple for some people - usually Higher Rate Tax payers who receive the bulk of their income through PAYE.
However, those who submit their own returns on-line or on paper (before today)are essentially relying on HMRC to get it right at their end.
And, as I said earlier, sometimes there can be odd-ball issues with PAYE codings which have strange consequences for self assessment tax calculations - and people may not be aware of these effects.
The classic example is when the tax coding for the year covered by the self assessment tax return was adjusted in order to collect tax arrears from an earlier tax year. This arrears of tax for the earlier year MUST be separately disclosed on the self assessment return because otherwise, the tax return will be incorrectly stating that all the PAYE deducted IN the tax return year stands to be credited against the overall tax liability for the tax return year.
I've seen that situation badly handled so many times.
However, those who submit their own returns on-line or on paper (before today)are essentially relying on HMRC to get it right at their end.
And, as I said earlier, sometimes there can be odd-ball issues with PAYE codings which have strange consequences for self assessment tax calculations - and people may not be aware of these effects.
The classic example is when the tax coding for the year covered by the self assessment tax return was adjusted in order to collect tax arrears from an earlier tax year. This arrears of tax for the earlier year MUST be separately disclosed on the self assessment return because otherwise, the tax return will be incorrectly stating that all the PAYE deducted IN the tax return year stands to be credited against the overall tax liability for the tax return year.
I've seen that situation badly handled so many times.
Eric Mc said:
The classic example is when the tax coding for the year covered by the self assessment tax return was adjusted in order to collect tax arrears from an earlier tax year. This arrears of tax for the earlier year MUST be separately disclosed on the self assessment return because otherwise, the tax return will be incorrectly stating that all the PAYE deducted IN the tax return year stands to be credited against the overall tax liability for the tax return year.
Actually, I do have that (due to the extra tax required on the dividends once over the threashold) but it's never bothered me as the statements catch up with themselves eventually, and there's no penalty amount involved. So I'll be paying last year's extra tax from next year's pay.But, again, most employees on PAYE wouldn't have that to contend with anyway.
I've been using software called TaxCalc (about £27) to do my Tax Return since 2009
Have a mix of PAYE, Dividend and pension income, but its pretty easy to enter the data
If you have the relevant documentation - P60's, Dividend statements etc its all straightforward and manages the submission to HMRC for you
I get the output file checked by my accountant and they have not highlighted any issues with the calculations etc yet
Have a mix of PAYE, Dividend and pension income, but its pretty easy to enter the data
If you have the relevant documentation - P60's, Dividend statements etc its all straightforward and manages the submission to HMRC for you
I get the output file checked by my accountant and they have not highlighted any issues with the calculations etc yet
There is an option on every self assessment tax return where the taxpayer can instruct HMRC to collect tax arrears through a PAYE coding adjustment. This is also an option for tax refunds that may be repayable to a taxpayer.
It is a "tick box" which, if ignored, should mean that HMRC expects the taxpayer to pay the arrears directly (or accept a tax refund directly).
My preference is to leave the box unticked so that clients' tax coding are kept as simple as possible.
If the amount of tax arrears exceeds £3,000 (was £2,000 up until teh end of tax year 2011/12), then the Tax Coding adjustment option cannot be exercised.
It is a "tick box" which, if ignored, should mean that HMRC expects the taxpayer to pay the arrears directly (or accept a tax refund directly).
My preference is to leave the box unticked so that clients' tax coding are kept as simple as possible.
If the amount of tax arrears exceeds £3,000 (was £2,000 up until teh end of tax year 2011/12), then the Tax Coding adjustment option cannot be exercised.
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