Should I tell the tax man?

triplea35

I am on PAYE and have never been required to complete a tax return for many years. The thought of having to complete one fills me with dread. Even getting a small additional pension recently they just amended my coding which is used on my main income, and I am now a higher rate tax payer.
In the last year or so my savings have increased considerably, much of which, which is not in ISA's etc, is taxed at the basic rate.
Just before the new tax year I calculated how much extra tax I haid paid from my salary and how much I would would owe from the savings and opened a SIPP with an appropriate sum that would allow me to claim all the higher rate tax back.
Therefore if I do get a tax return to complete what they take off me with one hand they will give back with the other, and if I dont get a tax return to complete we are 'quits' anyway.
As it is a certaintity that I would be the one who would benefit from a completed return am I being very 'naughty' in not notifying them of my changes in circumstances?
Your views appreciated.

PlutoinCapricorn

PAYE people who are not also self employed often do not need to fill in tax returns because all due tax is deducted at source via their Tax Codes.

PAYE people who have other sources of taxable income or reasons for paying less tax may need to ask for a tax form or register for the online service so that they can self assess and report the additions to HMRC. For example, a one-off payment for a special work assignment or the bank is deducting tax at 20% on interest and the PAYE person is earning below the personal allowance do interest should be paid gross.

It is always worth finding out what the current rules, bands and rates are and to ensure that you are paying enough tax and NI or even paying too much. If there is a difference between what you have paid and what you think you should have paid, that is the time to notify HMRC. Submitting a tax return is a lot easier now that it can be done online.

RayWolfe

If you are capable of working out your tax affairs sufficiently to to be able to see that you would be sensible to open a SIPP and then open one, why should you dread completing a tax return? You are clearly not daft but to put your head in the sand, surely is daft!
Tax returns are not that hard.

Pennywise

You may still not "need" to complete an SA return. It is quite possible (and commonly done) for a PAYE code to have adjustments for higher rate tax on interest and also for pension tax relief. I'd suggest that you just write to the tax office, outline your exact figures for total incomes and pension contribution for 08/09 and your estimates for 09/10 and ask them to adjust your PAYE tax code accordingly. If they will, that's fine, but if not, then yes you do have to complete an SA return - register to do it online and the system guides you through via a series of questions - it's a lot simpler than being presented with the horrible paper tax return (most of which you'd leave blank anyway).