Free tax advice available for those on a low income

Former_MSE_Wendy · 18 July 2008 at 10:48AM

Updated 30 September 08
(Some of the early discussion may be old)

What this is all about?

It's important to do your return on time or you will be fined £100. For the first time in donkey's years, the deadlines for filling in tax returns have changed, and time is now running out if you want to submit a paper return. Plus if you're on a low income and stuggling to do a return there are ways to get free help.

Who needs to do a return?

Don't automatically think you need to do a return...

If you've not been sent a self-assessment form, pay tax through the payroll, and don't have any other complicated finances you don't need to do one.

So this only really hits those who are self-employed, or have been sent a form (yes literally the fact you are sent a form is what counts). If you're in any doubt call your local tax office to check.

What are the key dates?

It used to be you had until 31 Jan to file a tax return without being charged interest and £100 fine.

Yet if you’re going to file a paper return, for the 2007-8 returns for the year ending 5 April, the deadline’s earlier: 31 Oct or you’re fined. Of course, after that you could decide to file an online return before 31 Jan to save the fine, but if not, go quick.

However filing online is the best bet as then you’ll get an immediate acknowledgement and more time.

See full details of KeyTax Dates and more info on the 31 Oct filing deadline (includes details on hand delivery over the weekend, but be careful of this as many tax offices do not have a letterbox).

* If you miss the relevant deadline you'll be charged an automatic £100 penalty. *

Which organisations offer free help?

TaxAid: A charity that provides free advice on your rights and responsibilities under the UK tax system and can help with any aspect of tax, not just your self assessment. Help is available for anyone on a low income - whether employed, self-employed, retired or on benefits - who cannot afford to pay for professional advice. Link: TaxAid

TaxHelp for Older People (TOP): An independent free tax advice service for anyone over pension age with taxable household income of less than £15k. It has around 550 volunteers able to provide free home visits in many locations, otherwise by telephone or post. Link: TOP

Citizens Advice Bureau: Most advisers can help with basic tax queries but may also be able to help find a local tax adviser. Link: Citizens Advice or visit your local bureau (find nearest)

HM Revenue & Customs: The tax office is able to help with tax queries at its enquiry centres or by phone on 0161 931 9070. Link: HMRC

UPDATE 28 JULY 08 - As mentioned in the dicussion below, thanks to MoneySaver chapperz for the top spot, there are also FREE tax workshops around the country for employers (inc. 'Paying your employees' and 'Paying expenses and giving benefits to your employees') and the self employed ('Becoming self employed' and 'Self assessment for self employed people'). Link: HMRC Workshops

Low Incomes Tax Reform Group: A service by the Chartered Institute of Taxation to provide general guidance on tax and related benefits for those who want to do their own tax affairs. Link: LITRG

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LongTermLurker · 23 July 2008 at 11:04AM

If you've not been sent a self-assessment form, pay tax through the payroll, and don't have any other complicated finances you don't need to do one.

What constitutes "Complicated Finances"?

fengirl_2 · 23 July 2008 at 11:38AM

Complicated finances basically means anyone who will have tax to pay at the end of the year, ie it has not all been collected through PAYE. It also includes Company Directors, people with self employed earnings on the side, income from property, higher rate taxpayers who have tax to pay on their investments or have large claims to relief to make, people with Capital Gains to declare.

LongTermLurker · 23 July 2008 at 1:13PM

fengirl wrote: »

Complicated finances basically means anyone who will have tax to pay at the end of the year, ie it has not all been collected through PAYE. It also includes Company Directors, people with self employed earnings on the side, income from property, higher rate taxpayers who have tax to pay on their investments or have large claims to relief to make, people with Capital Gains to declare.

Thanks. What about if savings income will put you into the higher-rate band but you haven't been sent a form? HMRC should know I'm either in, or very close to, the High Rate band from a PAYE perspective because I've recently had my tax code adjusted. Do I need to get a form, phone them up or just send a letter?

fengirl_2 · 23 July 2008 at 1:24PM

It's not HMRC's job to 'know' anything - the responsibility clearly lies with the taxpayer to notify liability. You will need to ring for a form.

LongTermLurker · 23 July 2008 at 2:11PM

fengirl wrote: »

It's not HMRC's job to 'know' anything - the responsibility clearly lies with the taxpayer to notify liability. You will need to ring for a form.

OK thanks. Like any comany, I would expect them to co-ordinate information and know what I should be paying if they've only just gone through my records (it's a bit like having a blood test done for something and them not noticing that you have something else), but judging by the lack of co-ordination between tax offices when I was moved across the country (although it's the same "company", they apparantly have no internal means of communication or data sharing) I doubt it.

Sorry if you work for the tax office, and thanks a lot for your help.

MSE_Martin · 23 July 2008 at 2:23PM

Thanks Fengirl for the good tips... and to echo what you say

Saying you should've known to the tax office doesn't work. The obligation is ALWAYS for you to tell 'em.

LongTermLurker · 23 July 2008 at 4:10PM

MSE_Martin wrote: »

Thanks Fengirl for the good tips... and to echo what you say

Saying you should've known to the tax office doesn't work. The obligation is ALWAYS for you to tell 'em.

Yeah, I realise that the obligation is with the individual, but I do feel they hide a lot behind the "it's your responsibility" shield (like all sections of government). My biggest gripe is that they don't talk to each other - no private organisation could get away with it.

Anyway, I called them, and the nice lady said I'd no need to worry as it will all be taken care of through PAYE - my savings/investment income for last year is negligable or within CGT allowances. Thanks again Fengirl.

chapperz_2 · 23 July 2008 at 4:28PM

Hi all,

I work for the HMRC Advice Team and would just mention that we do offer a course which is free of charge which is designed to show the Self-Employed how to do their Tax Return, either on paper or online. Have included a link due to it being a Government website & a free service. We run them at various locations around the country.

For more details go to https://www.hmrc.gov.uk/bst

Hope this helps someone! :T

Chapperz

LongTermLurker · 23 July 2008 at 4:44PM

Thanks for that Chapperz. I'm not self employed but I'm sure that's got to be worthwhile - being taken through the maze should help people understand what it's all about.

MSE_Martin · 23 July 2008 at 6:43PM

Thanks chapperz - sounds good will take a look

Free tax advice available for those on a low income

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