2 Tax return questions (2008/09 only)

ScarletBea

Hello, 2008/09 will be my first year submitting a tax return, since I'm a higher rate tax payer (last year I didn't work the full year so didn't qualify).

My first question is to do with the online submission. Because of my experience with the HMRC's knowledge of my benefits at work (there was a big mess where they apparently lost my P46 (I think it's the code), so weren't counting them, then I had to communicate again and am paying extra tax from last year via my tax code), I'm not sure if I'll get the request to do a tax return - I thought it would be automatically for all high-rate payers, but I've read somewhere that it might not be the case.
Anyway, I'd like to register to submit my return online, but for that you need a code that they say comes with the HMRC's request: if I don't get one, does it mean I'll need to do a paper submission? Where could I get the code? How long should I wait until I call them and ask for a code: June? July?

Another question is to do with what counts as taxable income.
I have some shares in the US, which I got via my old job. I don't receive any cash dividends, since all the dividends are automatically reinvested in the shares. These dividends get taxed in the US at 15% automatically, meaning I only received 85% of them.
Anyway, do I need to include them in the tax form, even I didn't get the money? And if yes, shall I show the net amount, or are there separate fields for the gross amount and the retained tax?

(sorry if it's silly, I've never seen any UK tax forms before)

jem16

ScarletBea wrote: »

Hello, 2008/09 will be my first year submitting a tax return, since I'm a higher rate tax payer (last year I didn't work the full year so didn't qualify).

My first question is to do with the online submission. Because of my experience with the HMRC's knowledge of my benefits at work (there was a big mess where they apparently lost my P46 (I think it's the code), so weren't counting them, then I had to communicate again and am paying extra tax from last year via my tax code), I'm not sure if I'll get the request to do a tax return - I thought it would be automatically for all high-rate payers, but I've read somewhere that it might not be the case.

Just being a higher rate taxpayer will not necessarily mean you have to do a tax return, especially if all your affairs are normally dealt with through PAYE. It's really only necessary if you have more complicated tax affairs to deal with.

There's a link here so that you know if you are likely to need to do a tax return.
http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/SelfAssessmentYourTaxReturn/DG_4017116

Anyway, I'd like to register to submit my return online, but for that you need a code that they say comes with the HMRC's request: if I don't get one, does it mean I'll need to do a paper submission? Where could I get the code? How long should I wait until I call them and ask for a code: June? July?

Phone HMRC now and then you will find out if you are going to need to do a tax return. If it is necessary you will then get the UTR that you need to register for online assessment.

Another question is to do with what counts as taxable income.
I have some shares in the US, which I got via my old job. I don't receive any cash dividends, since all the dividends are automatically reinvested in the shares. These dividends get taxed in the US at 15% automatically, meaning I only received 85% of them.
Anyway, do I need to include them in the tax form, even I didn't get the money? And if yes, shall I show the net amount, or are there separate fields for the gross amount and the retained tax?

(sorry if it's silly, I've never seen any UK tax forms before)

You certainly have to include UK dividends whether they are reinvested or not so I would imagine it's the same for foreign dividends. UK dividends it's just the actual dividend amount that you enter. I believe for foreign dividends (up to £300) it's the amount before tax that you enter and then also the tax taken off although I'm not sure on this.

fengirl_2

To add to Jem's post, on no account get yourself into the self assessment system unless it is really necessary as once in, its hard to get out. The UK is not like the US as most taxpayers here don't have to complete e tax return.