Self assessment tax form and savings/investments/property

aetc

I'd like some advice on tax and completing a SA tax form. I have never completed a SA tax form as I've always been an employee and I have never been sent one by Inland Revenue. I have however had some various savings and have bought into a flat.

My situation is: Up to tax year 08/09 I had the following savings: £4k in a Nationwide Cash ISA (not subject to tax), £20k in a L&G Stocks ISA (not subject to tax), £30k in NSI Premium Bonds ("tax-free cash prizes"), £12k in a NSI Investment Account ("taxable, paid gross").

In tax year 09/10 I bought into a flat with a transfer of equity, using all of the savings above, except for the stocks ISA, and some money from parents and grandparents as a deposit, and there's a mortgage on the property.

In this time up to Dec 2010 I had a job with an employer that was taxed PAYE. I was then made redundant and currently don't have a new job. I will also be inheriting some money this year.

My questions:
Should I have been completing tax forms yearly up to 08/09, because although my job was taxed PAYE by my employer, I had the savings (particularly the taxable NSI Investment Acc)?

Should I do one for 09/10, because of putting the savings and outside money into the transfer of equity?

Should I do one next year, because of the equity in the house and the inheritance - regardless of my future job situation?

If I was to fill in my first tax form now, will it alert IR to dig back into previous years?

ncthomas1

08/09- taxable interest YES that should go on a tax return if you have not paid tax on it. (you have missed the deadline for that one though... should have gone in by 31/01/10)

Flat - do you LIVE in this flat or rent it out???

IHT (inheritance tax) does the lawyer looking after it specifically advise on that, it is a MINEFIELD and too much to go into on here.

Job situation - if you were PAYE and finished part way through a tax year (which you did) have you reclaimed your overpaid PAYE tax for 09/10 yet?

Nicola (Accountant)

Mikeyorks

aetc wrote: »

Should I have been completing tax forms yearly up to 08/09, because although my job was taxed PAYE by my employer, I had the savings (particularly the taxable NSI Investment Acc)?

No. But you should have been declaring it to HMRC and they would usually code it out up to £2500. They would only ask for a Return if your affairs are complex and they sound not to be. They would normally just use a simple return form (P810) issued every few years.

The only reason you should be doing an SA Return is if the property you mention is generating income.

Bear in mind NS&I report (look up TDSI on the HMRC site) untaxed interest direct to HMRC ......... so it's sometimes better to volunteer before being pressed?