Self Assessment Rules

sorcerer

I am curious about something, in the guidelines for when you need to fill in a self assessment form, it says if your income and dividends are over £10,000 you need to fill one in. Do you think this includes all income including ISA's income or just income outside of an ISA?

sorcerer

And a further point how about income made inside a SIPP?

[Deleted User]

One does not include income from within ISAs or SIPPs.

polymaff

sorcerer wrote: »

I am curious about something, in the guidelines for when you need to fill in a self assessment form, it says if your [taxable] income and dividends are over £10,000 you need to fill one in. Do you think this includes all income including ISA's income or just income outside of an ISA?

Classic hmrc / gov.uk performance. They left out the key-word - at least that is how the rest of us understand it.

sorcerer

Yes their was nothing on their website that said anything about taxable income.


That does leave me with an important question i guess, in that why they keep asking me to fill in a self assessment form each year, when i have only one job on PAYE, 80% of my other income is in my ISA, leaving about £2000 a year in income made from the trading account, plus my job, add the two together and i still sit in the 20% tax bracket. So each year, the total tax comes to 0. Mostly except for last year, where i got a refund of £6 .:rotfl:

TheCyclingProgrammer

Next time you get your notice to file a return, ring them up and ask them to withdraw it and explain why you don't have any additional untaxed income.

antrobus

TheCyclingProgrammer wrote: »

Next time you get your notice to file a return, ring them up and ask them to withdraw it and explain why you don't have any additional untaxed income.

The OP refers to "£2000 a year in income made from the trading account". I suppose we should ask for clarification of what 'trading' is being conducted.

But anyone who has a business should expect to complete a SA return. How else are HMRC supposed to know what they are up to?

00ec25

antrobus wrote: »

The OP refers to "£2000 a year in income made from the trading account". I suppose we should ask for clarification of what 'trading' is being conducted.

But anyone who has a business should expect to complete a SA return. How else are HMRC supposed to know what they are up to?

clarification will, of course, clarify, however, it seems pretty obvious that he is referring to a "trading" account for investment purposes and the "income" will be either profit from share selling (thus subject to CGT) or dividends (thus subject to the £5,000 dividend allowance).

OP, by the sounds of it with "only" £2,000 at stake you should have a reasonable case for coming off SA. However, HMRC are not particularly quick at doing that on their own initiative, much better to put the request in yourself.

sorcerer

I can clarity that the £2000 is income from dividends from investments I hold. I have no CGT to declare at the moment, since I haven't sold any shares.

I did ask them a couple of years ago, to remove me, but they just ignored my requests. So next year I will try again. I filled and submitted in 2016/17 now, so no point worrying about that one.

badmemory

If there is a statutory requirement for the dividend providers to notify HMRC of any dividends given, as there is for bank accounts with interest, you may find that they withdraw your requirement and bill you. They have just withdrawn my requirement to do SA even though nothing has changed, my taxable income is still too great to be deducted from income that can have a tax code. I will be watching their "bill" very carefully. I remain unconvinced that this is a good idea!

00ec25

badmemory wrote: »

If there is a statutory requirement for the dividend providers to notify HMRC of any dividends given, as there is for bank accounts with interest, you may find that they withdraw your requirement and bill you. They have just withdrawn my requirement to do SA even though nothing has changed, my taxable income is still too great to be deducted from income that can have a tax code. I will be watching their "bill" very carefully. I remain unconvinced that this is a good idea!

you are perfectly entitled to submit a voluntary SA if you consider that your figures will be more accurate than their bill. After all it is called SA for a reason.