duck
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Post by duck on Mar 20, 2015 5:42:01 GMT
Read on HMRC budget overview, that they adjust your tax code to take account of interest over 1k...maybe through the new digital account?  That might be fine for those who are employed and are covered by PAYE. But what about all of us who are no longer employed? My income comes purely from my investments. If I have a tax code, I don't know what it is. And, in any case, it's irrelevant because none of my income sources pay any attention to it. They might be forced to ask for it in future, but I don't see what use they could put it to since each payer provides only a small part of my income. AIUI, a tax code is only of use where most of someone's income comes from a single source. From what I have read those that have retired and those of us who are working for our own Ltd Companies/Self Employed the onus will be to complete one of the 'new online' (as opposed to 'old online') self assessments .... and if Gross interest reaches a certain level (with/without other earnings) you end up having to pay tax in Jan and June (so some in advance) on projected interest ...... yes I got caught this year! The levels I'm uncertain about but this is one of my questions for my accountants next week as I plan running down my business in the most efficient manner.
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Post by batchoy on Mar 20, 2015 6:47:27 GMT
That might be fine for those who are employed and are covered by PAYE. But what about all of us who are no longer employed? My income comes purely from my investments. If I have a tax code, I don't know what it is. And, in any case, it's irrelevant because none of my income sources pay any attention to it. They might be forced to ask for it in future, but I don't see what use they could put it to since each payer provides only a small part of my income. AIUI, a tax code is only of use where most of someone's income comes from a single source. From what I have read those that have retired and those of us who are working for our own Ltd Companies/Self Employed the onus will be to complete one of the 'new online' (as opposed to 'old online') self assessments .... and if Gross interest reaches a certain level (with/without other earnings) you end up having to pay tax in Jan and June (so some in advance) on projected interest ...... yes I got caught this year! The levels I'm uncertain about but this is one of my questions for my accountants next week as I plan running down my business in the most efficient manner.
The way I am reading the 'new online' self assessment is that it is going to be a real time system similar to the PAYE RTI as opposed to a once a year system so you will have to log financial events as and when they occur rather than tallying them up 6-9 months after the end of the tax year in which they occurred.
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duck
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Post by duck on Mar 20, 2015 9:25:09 GMT
From what I have read those that have retired and those of us who are working for our own Ltd Companies/Self Employed the onus will be to complete one of the 'new online' (as opposed to 'old online') self assessments .... and if Gross interest reaches a certain level (with/without other earnings) you end up having to pay tax in Jan and June (so some in advance) on projected interest ...... yes I got caught this year! The levels I'm uncertain about but this is one of my questions for my accountants next week as I plan running down my business in the most efficient manner.
The way I am reading the 'new online' self assessment is that it is going to be a real time system similar to the PAYE RTI as opposed to a once a year system so you will have to log financial events as and when they occur rather than tallying them up 6-9 months after the end of the tax year in which they occurred. I read it the same, how compulsory the 'fill as you go' approach is to be is yet to be given as far as I can see. I feel this is to get rid of the end of year rush but no doubt there will be more stings in the tail than the average scorpion has ....
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oldgrumpy
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Post by oldgrumpy on Mar 20, 2015 9:44:15 GMT
I wonder if the software behind this new idea will be as good as certain other highly expensive government computer software which had to be scrapped because it "wasn't fit for purpose" i.e. didn't bloody work. <ahem ... language, Grumpy> |
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ilmoro
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Post by ilmoro on Mar 20, 2015 10:12:54 GMT
The way I am reading the 'new online' self assessment is that it is going to be a real time system similar to the PAYE RTI as opposed to a once a year system so you will have to log financial events as and when they occur rather than tallying them up 6-9 months after the end of the tax year in which they occurred. I read it the same, how compulsory the 'fill as you go' approach is to be is yet to be given as far as I can see. I feel this is to get rid of the end of year rush but no doubt there will be more stings in the tail than the average scorpion has .... From yesterdays DM 'No respite from online taxman PEOPLE who run their tax affairs with the Government’s new digital accounts will face steep fines if they do not keep them in order, it emerged last night. The Government has promised to replace annual paper self-assessment tax returns with online accounts that work like bank accounts by spring next year. But workers and small businesses face a £100 fine for failing to get up-to-date information online by January 31 each year, even if no tax is owed. Those who fail to hand over the information within the following six months could end up owing £1,600 in fines. Anyone who prefers to use the old paper method can still do so.'
c--I-I-I{
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Post by batchoy on Mar 20, 2015 10:34:11 GMT
Published by HMRC and referred to in the Budget documents on how they tax return will change: Making Tax Easier. Beyond this everything else seems to be up in the air and subject to consultation. |
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mikes1531
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Post by mikes1531 on Mar 20, 2015 10:58:44 GMT
I read it the same, how compulsory the 'fill as you go' approach is to be is yet to be given as far as I can see. I feel this is to get rid of the end of year rush but no doubt there will be more stings in the tail than the average scorpion has .... From yesterdays DM 'No respite from online taxman PEOPLE who run their tax affairs with the Government’s new digital accounts will face steep fines if they do not keep them in order, it emerged last night. The Government has promised to replace annual paper self-assessment tax returns with online accounts that work like bank accounts by spring next year. But workers and small businesses face a £100 fine for failing to get up-to-date information online by January 31 each year, even if no tax is owed. Those who fail to hand over the information within the following six months could end up owing £1,600 in fines. Anyone who prefers to use the old paper method can still do so.'
To be honest, this looks exactly like the current system where a SA tax return has to be filed online by 31/Jan, and failure to do so means an immediate £100 penalty, with the penalty rising as the return gets later and later. The main change, therefore, would seem to be the scrapping of the option to submit a paper return. If that's the case, this may be a tempest in a teapot, though I haven't a clue what proportion of SA returns are filed on paper vs. the proportion filed on line. If they're mostly done on paper now, then a lot of peole will have to change, but I suspect most are done online these days.
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Post by batchoy on Mar 20, 2015 11:14:57 GMT
From yesterdays DM 'No respite from online taxman PEOPLE who run their tax affairs with the Government’s new digital accounts will face steep fines if they do not keep them in order, it emerged last night. The Government has promised to replace annual paper self-assessment tax returns with online accounts that work like bank accounts by spring next year. But workers and small businesses face a £100 fine for failing to get up-to-date information online by January 31 each year, even if no tax is owed. Those who fail to hand over the information within the following six months could end up owing £1,600 in fines. Anyone who prefers to use the old paper method can still do so.'
To be honest, this looks exactly like the current system where a SA tax return has to be filed online by 31/Jan, and failure to do so means an immediate £100 penalty, with the penalty rising as the return gets later and later. The main change, therefore, would seem to be the scrapping of the option to submit a paper return. If that's the case, this may be a tempest in a teapot, though I haven't a clue what proportion of SA returns are filed on paper vs. the proportion filed on line. If they're mostly done on paper now, then a lot of peole will have to change, but I suspect most are done online these days. What was described in the DM is the current situation. What appears to be being proposed by HMRC is a real time system where by information will have to be input as and when it occurs, but according to their pamphlet (see my earlier post) there are consultations to be done first. The real danger that I see from a real time system is that they will want the tax paid in real time as well, so no possibility of investing the money until it needs to be paid you will have to pay it when you receive it ie personal PAYE
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bigfoot12
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Post by bigfoot12 on Mar 20, 2015 14:39:24 GMT
But presumably this is part of pre filling in the data from P60 returns which is already announced. Pre-filled tax returns set for 2014-15 If this gets extended to bank accounts and P2P accounts it will make life much easier. Quoted UK dividends shouldn't be that hard either. They all have my NI number. |
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duck
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Post by duck on Mar 20, 2015 17:04:42 GMT
I just see this getting horribly messy.
Last year I fell foul of the VAT man (@15 years VAT registered and unblemished record) .... I submitted an online query and waited ..... 2 weeks later I got an Email back saying I had submitted the query to the wrong Email address and it would not be dealt with - they did not tell me where to send the query. Back on line I submitted the same query to the only other available 'contact us' Email address and after the same wait I got the same response. So neither available Email address was the correct one! In the mean time I received an assessment (this amounted to a normal ~9 months trading not 3) a demand for immediate payment and a hefty 4 figure fine for late submission!
A few years ago I applied for a VAT rebate and waited and waited only to find out that the office that I had sent the paperwork to (correct at time of sending) had been closed down and all pending paperwork had been 'archived without action'. Start all over again .......
Just a couple of personal examples of why I dread what appears to be about to happen.
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duck
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Post by duck on Mar 20, 2015 17:36:11 GMT
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Post by xyon100 on Mar 23, 2015 0:33:26 GMT
You are confused? Walk a mile in my shoes between the UK, Belgium and the Czech republic.
Oh yes, deducting tax at source sounds all very reasonable unless you don't actually live in the country. For instance, I have a UK property I rent out. According to HMRC, my TENANTS should be deducting 20 percent tax from the rent and be submitting quarterly returns to HMRC. My tenants?! Better, when they do this (IF!) I lose all opportunity to deduct any expenses from that tax, unlike a UK resident landlord. Oh, and then Belgium applies ILLEGAL taxation on the remainder, illegal because no tax would be applied to rental income on a domestic rental property, a flagrant breach of EU rules that will take years to be stopped though the EU courts.
So, going by the UK governments treatment of overseas landlords (they would NEVER have got away with that if it were not applied to a few furriners) I can expect my UK interest payments to be subject to withholding taxation with no opportunity to offset that tax against expenses. The UK government has form for this already.
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adrianc
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Post by adrianc on Mar 23, 2015 8:21:45 GMT
For instance, I have a UK property I rent out. According to HMRC, my TENANTS should be deducting 20 percent tax from the rent and be submitting quarterly returns to HMRC. My tenants?!
No, your letting agent should be doing that, with any expenses they've paid on your behalf already taken into account. You do, I presume, have a letting agent? You can then offset expenses against that income on your self-assessment return.
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Post by xyon100 on Mar 23, 2015 12:18:33 GMT
Nope, I don't have a letting agent. May I ask if you are also not UK resident and have some experience of this? I only recently bought the place and was completely unaware of these "overseas landlord" regulations.
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adrianc
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Post by adrianc on Mar 23, 2015 13:05:02 GMT
Nope, I don't have a letting agent. So what UK contact address do you give your tenant, as legally required?
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