PAYE sent self assessment???

dragonfly02 · 22 January 2006 at 6:38PM

My partner was sent a self assessment form months ago and we disguarded it assuming the tax people had made a mistake, I have sinse been talking to my dad who is also PAYE and he said he had to file self assessment last year.

Can anyone help? do you have to fill out self assessment if you are PAYE and not self employed? if so why?

Murtle · 22 January 2006 at 6:44PM

Yes, people who are PAYE can have to fill in tax forms. Why? could be various reasons I guess but I have worked with lots of PAYE people who've completed self assessment. I hope someone else can answer that bit, I'll have a look around though!

Murtle · 22 January 2006 at 6:46PM

Q.Who does Self Assessment apply to?

A. Self Assessment applies to:

self employed people including business partners
company directors
other people with more complicated tax affairs including people who pay higher rate tax
pensioners with more complex tax affairs
people who received rent or other income from land and property in the UK
trustees and personal representatives
trustees of approved self-administered pension schemes
non-resident company landlords

taken from http://www.hmrc.gov.uk/sa/faqs/general.htm

does any of this apply?

dragonfly02 · 22 January 2006 at 7:25PM

Murtle I'm so greatful for a reply considering I think I posted in the wrong forum.
I also found the info on the hmrc website and none of the above apply so I'm even more bamboozled

Murtle · 22 January 2006 at 7:29PM

I would suggest getting the paperwork together to send off and phone them up when they are open to ask why he has to. However, as they have sent one, if it's not returned there will be a fine to pay. However, if everything has been PAYE, then it should be fairly straight forward to complete. Again, the inland revenue people will be able to help, they are a nice bunch on the other end of the phone and have always been really helpful when I've phoned them.

Good luck.

Bordera · 22 January 2006 at 7:47PM

Self assesment applies to absolutely anyone.

Murtle's excellent list is of the type of people who can expect to receive a self assesment form every year.

We are ALL within self assesment, in that it is up to each person to know what has to be reported to HM Revenue and Customs and when and to ensure that the correct amount of tax is paid each year. This applies even if you are NOT sent a self assesment form.

It may be that your partner's income is nearing or is just over the higher rate tax threshold and the return is issued to see if (s)he has any investment income that will be taxable at 40% in future.

Investment income is usually only taxed at one of the lower tax rates when you get it so additional tax is sometimes due, eg another 20% on bank interest.

Is it a full (10+ pages) return or a short 4 page version? The 31 January deadline applies to both of them.

PAYE sent self assessment???

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