Should I be doing a self assessment?

splatt30

Hi,
I'm after some advise. I am a higher rate tax payer (have been for 5 years) and have never filled in a self assessment form. All my income is from 1 employer and tax is taken on PAYE. Our savings offset our mortgage so there is no extra income from interest.

Some of my colleagues have had money back from the tax man for things like professional fees, others, seemingly in the same situation have had nasty bills through for thousands of pounds saying that they had under paid on the PAYE, when they have completed self assessment forms.

So, is it worth it?

fengirl_2

Self assessment isn't something that you do because 'its worth it', but because you have to.

Basically, if you have additional tax to pay - from self employment, income from property, untaxed interest, then you have to self assess. Also, if you are a higher rate taxpayer and have only paid basic rate tax on interest or some other income.

If this does not apply to you, then you should not self assess. If you wish to claim relief for professional fees, then you can just write a letter to your tax office setting out your claim. If HMRC judges that it wants you to self assess, then they will issue you with a form. Its certainly not a system you should get into if you dont need to.