toffeeboy
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Post by toffeeboy on Mar 1, 2016 18:35:30 GMT
We are all supposed to get our own on-line tax accounts soon. Will it make a difference for self-employed? If you are self employed then I would have expected you to already have an online account even if you don't use it. Your accountant probably has your online details already assuming they file your tax return on your behalf.
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Post by blanik on Mar 5, 2016 17:18:37 GMT
Interesting, I would be interested to know how receptive they are to reclassifying it as "savings income". Got an e-mail reply from HMRC after a couple of weeks "We have updated your tax code based on the information you have supplied." but it doesn't tell me what the change is - I have to wait another 2 weeks for it to turn up in the post. But looks like it has been done.
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ablender
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Post by ablender on Mar 5, 2016 21:09:22 GMT
Will it make a difference for self-employed? If you are self employed then I would have expected you to already have an online account even if you don't use it. Your accountant probably has your online details already assuming they file your tax return on your behalf. Yes my accountant deals with that part. I have no idea what he does. The important thing is that I do not have to do things on a regular basis. Once a year is already more than enough.
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stevio
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Post by stevio on Mar 5, 2016 21:15:01 GMT
How do you account for the various differing SM sales?
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Hairbear
He who dares..wins (most of the time)
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Post by Hairbear on Mar 6, 2016 9:36:46 GMT
COME ON PEOPLE.. WE CAN ALL CUT OUR TAX BILLS IN HALF....
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Hairbear
He who dares..wins (most of the time)
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Post by Hairbear on Mar 6, 2016 9:38:37 GMT
With these amazingly sharp scissors, only £2.99.....
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Hairbear
He who dares..wins (most of the time)
Posts: 144
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Post by Hairbear on Mar 6, 2016 10:05:11 GMT
NOOOOOOO... I JUST REMEMBERED... I WENT PAPERLESS LAST YEAR....
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stevio
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Post by stevio on Mar 6, 2016 13:06:42 GMT
How do you account for the various differing SM sales? Thinking of SS, FS, MT and AB SM in particular
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Post by blanik on Mar 19, 2016 18:08:48 GMT
Interesting, I would be interested to know how receptive they are to reclassifying it as "savings income". Got an e-mail reply from HMRC after a couple of weeks "We have updated your tax code based on the information you have supplied." but it doesn't tell me what the change is - I have to wait another 2 weeks for it to turn up in the post. But looks like it has been done. Paper P2 arrived with new tax code - no mention of P2P interest for 2016/17 so looks good. There is still an underpayment restriction as a result of underpaid tax (on P2P interest) in previous years - this is correct, I expect to see this for the next couple of years due to the way the system works!
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james
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Post by james on Mar 19, 2016 21:47:15 GMT
How do you account for the various differing SM sales? Thinking of SS, FS, MT and AB SM in particular Make an educated guess, use a return with estimated amounts and note in the comments box on the tax return that "there are uncertainties about tax treatment of some payments and if the final result of their consultations is different I may need to revise the numbers, my estimate of the potential maximum tax difference is x up or y down depending on the results". It'll sit nicely alongside "the tax treatment of specific peer to peer bad debt deductions remains uncertain so I have made what I believe to be reasonable estimates of the effects, having read what is known about the rules so far. If final rules require different treatment I may need to submit a revised return. My estimate of the maximum potential tax difference is x up or y down". To date I haven't yet had trouble on returns with estimated numbers when I've indicated the numbers affected, the reason for the uncertainty and the potential amounts involved.
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guff
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Post by guff on Apr 2, 2016 22:24:37 GMT
Several years ago HMRC wrote to me after I had submitted my tax return and they suggested that my tax affairs were relatively straightforward and offered me the opportunity to stop doing tax returns. The next day I got a tax rebate of maybe £20 but I took them up on their offer anyway as it seemed like a fair price for not having to fill in a return. This has worked well until I started investing in P2P in 2014. On 10th January this year, I sent them a covering letter (explaining that I had tried ringing but never got through and was out of the country until February) with a copy of my P2P interest statements for 2014-15 and made a transfer of 20% of the interest to the account number I'd still got from way back. I did the same for my wife who has never done a tax return and enclosed a cheque with the letter: The cheque was cashed on the 5th February. I expected to hear something but I have heard nothing. My wife has just received her notification but there is no mention of P2P. I've been doing a bit of research and came across an interesting HMRC consultation document from last year and an article in the FT which may be of interest. |
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ablender
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Post by ablender on Apr 6, 2016 4:38:04 GMT
I've been doing a bit of research and came across an interesting HMRC consultation document from last year and an article in the FT which may be of interest. I hope that they will not make/enforce a law where the borrower collects the tax. (mentioned in various places in the linked document.) That can potentially be open to all sorts of abuse. What would happen with a borrower who collects tax, then defaults and not pass on the tax to HMRC? Where would that situation leave us?
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Post by dualinvestor on Apr 12, 2016 16:30:31 GMT
If your affairs are relatively simple you can just register yourself for an online HMRC account. You will be surprised at the amount of information already on there, for instance those paid under PAYE or the sub-contractors scheme have the details entered under RTF (Real Time Filing) by their employer. For a while banks have supplied details interest received, and contrary to what someone said earlier this information is used to calculate tax due and/or amend PAYE codes, I believe at least Zopa do the same (or so it would appear from my own tax affairs, but cannot confirm this as they do not break down from whom the interest was received). The software will be capable of taking into account the savings income exemption and calculating everyone's liability. If the total amount you owe is less than £2,000 you have the option of having your code changed or paying in lump sums on January 31 and July 31, for greater amounts you have to make the payments and possibly payments on account of the following years liability.
At present the only people obliged to file a tax return are the self-employed, most company directors, people with rental and foreign income and anybody who HMRC serve a notice. However it has always been the case that it is the duty of the taxpayer to inform the authorities of income and the usual deadline is 31 January (or 31 October for paper returns). Once the system of online accounts has gained enough momentum HMRC have indicated that they will do away with the annual ritual but for the time being we are stuck with it.
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duck
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Post by duck on Apr 13, 2016 6:27:41 GMT
I've been doing a bit of research and came across an interesting HMRC consultation document from last year and an article in the FT which may be of interest. I hope that they will not make/enforce a law where the borrower collects the tax. (mentioned in various places in the linked document.) That can potentially be open to all sorts of abuse. What would happen with a borrower who collects tax, then defaults and not pass on the tax to HMRC? Where would that situation leave us? That is a real worry ablender. Many years ago when I was PAYE my employer deducted NI and didn't pay it over, I ended up in Court! OK the case was dismissed since I had all the paperwork but stress you just don't need.
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pikestaff
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Post by pikestaff on Apr 13, 2016 7:17:06 GMT
I've been doing a bit of research and came across an interesting HMRC consultation document from last year and an article in the FT which may be of interest. I hope that they will not make/enforce a law where the borrower collects the tax. (mentioned in various places in the linked document.) That can potentially be open to all sorts of abuse. What would happen with a borrower who collects tax, then defaults and not pass on the tax to HMRC? Where would that situation leave us? Relax. It's not going to happen. The consultation took place in order to fix the inconsistency between practice (no deduction at source) and the law (deduction at source required where lenders are individuals and in some other cases, but extremely impractical). The intended outcome is that the status quo will be retained and I'm sure that it will be. Until the law is brought in line, HMRC is (by concession) allowing current practice to continue.
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