Get a letter each year but no Self Assessement ?

suso

If I remember rightly, (not guaranteed)

Its is a P252, once you slip into paying at a higher rate, then HMRC send these out to try and find out in you have any savings interest, or dividends interest (the banks / companies only deduct tax at the basic rate, so if you have investment income then HMRC want their extra 20%.)

Its unlikely that you have gone into SA because you didn't call them, as the earnings base for SA is £100,000. Its true that you used to go into SA if you were a higher rate taxpayer, but these days its unlikely.

Every year your a higher rate tax payer, you'll get a letter.

barak

ScarletBea wrote: »

.....That just seems like a very convoluted way of doing stuff, I'd rather just pay it out and not have my monthly income reduced - but I guess it's welcome to the english tax system...

And anyway, all high-rate tax payers have savings, so why don't they just send the self-assessment papers to everybody instead of having to deal with individual communications? It'd be much easier for them.

I agree with you. I don't really understand how higher rate taxpayers can avoid being on self-assessment, but once on it, it seems that you can (up to a certain limit) choose to pay any higher rate tax due from savings after the end of the relevant tax year rather than having it incorporated into your tax code.

ScarletBea

Thanks - I'm actually going to call them in a bit and see what they say.

fengirl_2

All HR taxpayers don't have savings! Many people live up to their income, or make use of tax free products in order to avoid HR tax.
If all HR taxpayers were included in the SA system automatically, it would be even more of a nightmare than it is now. the law is quite clear - its the taxpayer's responsibility to notify chargeablilty (and it always has been).

ScarletBea

Ok, but I find very strange that you're earning 40k+ and spend everything, but I guess it takes all sorts...

Anyway, I called and they asked me if I had more than 10k in savings interest (I wish!!!!), so if not I can just tell them over the phone the amount and they'll deduct it from my PAYE code.
When I asked if I couldn't just pay in one go, she replied that would mean filling in a self-assessment form and it wouldn't really be worth it (polite way of saying "don't do it, it would be far too confusing for you and too much work for us! ), so I guess I'll go the PAYE route...

barak

fengirl wrote: »

All HR taxpayers don't have savings!

Fengirl - From your postings, I have the impression that you may be an insider but I feel that 99.9999% of HR taxpayers probably do have some taxable savings. They also surely have bank accounts. My current account is still paying me 1% interest even in today's climate.

I wonder whether HMR&C is missing something here, perhaps for fear of being unable to cope. Completing SA online is a doddle - especially for those HR taxpayers with such apparently simple financial affairs.