First time self assessment tax return - help!

Rob-123

Hi all

Realised today I need to complete a tax return, I am not self employed however I claim child benefits and looks like by April I will go slightly above the £50k threshold.

What I’m really stuck on is when it asks for NET Income, and when this is calculated to from and to.

My pay changes each month due to overtime commitments, one month I may do no overtime and another I may do £1000 worth of overtime depending on needs of my employer.

What I’m asking is, is NET Income calculated from what I’ve earnt since last January to this month, or last April to now? If that’s the case then I’ll be under but they won’t be taking into account Feb or March pay, and I don’t know what they will be.

Many thanks in advance.

[Deleted User]

Hi,

you should be doing a return for tax year 20/21, and have all details on payslips.

The last tax year started on 6 April 2020 and ended on 5 April 2021.

Rob-123

Thanks so much for your reply.

So the tax return deadline at midnight tonight is for the period of April 20 - April 21? Makes more sense if so!

Im assuming then that the period of April 21 - April 22 deadline will be 31st January 2022?

Chris_English

Do you have your P60 for year-to-Apr 2021? That should contain all of the data that you need.

As above, this tax return is for year ending last April.

[Deleted User]

Hi,

yes,

from GOV.UK, Online tax returns Midnight 31 January 2022 (you can submit up to 28 February 2022 without getting a late filing penalty)

The April 21/22 deadline will be January 2023.

Rob-123

Chris_English said:

Do you have your P60 for year-to-Apr 2021? That should contain all of the data that you need.

As above, this tax return is for year ending last April.

Thanks, yes I have my P60, so as long as I’m under £50k which I believe I was, I don’t need to do anything? 

Rob-123

Another thing is, I have a Share Incentive Plan with my employer whereby I purchase shares monthly and leave them to mature for 5 years, I can then withdraw as many or as little shares as I want an pay no tax on them. 

I am aware there is a capital gains threshold of which I am under since withdrawing any shares - for example I withdrew £4000 of shares for the first time and paid no tax, this month. 

Will this £4000 need to be added to my NET Income during my tax return in January 2023?

Chris_English

Rob-123 said:

Chris_English said:

Do you have your P60 for year-to-Apr 2021? That should contain all of the data that you need.

As above, this tax return is for year ending last April.

Thanks, yes I have my P60, so as long as I’m under £50k which I believe I was, I don’t need to do anything? 

Yes, just put in the amounts from your P60.

Shares that you have bought don’t get entered into the salary section. If you’d been granted them as a bonus then they would go in, but they’d also be included in your P60.

There’s a separate section for capital gains, but capital gains on shares are only counted when you sell them.

Edited to add, you don’t “withdraw” shares, do you mean that you sold them? If so you’re well within your capital gains allowance, so there’s no need to mention them anywhere.

Until recently I used to get quite a lot of shares in my year-end bonus (six figures.) These were on my P60 at the value they had when granted. If I had ever made a profit (banking shares only went one way in the years I got them) then this would have been entered in the capital gains section, but as it was, they never appeared anywhere other than my P60, so we’re only entered in the salary section.

No entry was needed to show them being sold at a loss.

Rob-123

Chris_English said:

Rob-123 said:

Chris_English said:

Do you have your P60 for year-to-Apr 2021? That should contain all of the data that you need.

As above, this tax return is for year ending last April.

Thanks, yes I have my P60, so as long as I’m under £50k which I believe I was, I don’t need to do anything? 

Yes, just put in the amounts from your P60.

Shares that you have bought don’t get entered into the salary section. If you’d been granted them as a bonus then they would go in, but they’d also be included in your P60.

There’s a separate section for capital gains, but capital gains on shares are only counted when you sell them.

Edited to add, you don’t “withdraw” shares, do you mean that you sold them? If so you’re well within your capital gains allowance, so there’s no need to mention them anywhere.

Until recently I used to get quite a lot of shares in my year-end bonus (six figures.) These were on my P60 at the value they had when granted. If I had ever made a profit (banking shares only went one way in the years I got them) then this would have been entered in the capital gains section, but as it was, they never appeared anywhere other than my P60, so we’re only entered in the salary section.

No entry was needed to show them being sold at a loss.

Great information, thanks.

Its a share plus scheme, so for every 2 shares that I purchase, my employer purchases 1 share for me. These are all held in a share plan and yes I can sell these. After 5 years some will be tax free. Most of the time the shares are gradually increasing and I receive dividends on the shares I hold which is added to my share balance.

Just wanted to make sure these don’t need to be added to my NET Income on the tax return.

[Deleted User]

[Deleted User] said:

Hi,

yes,

from GOV.UK, Online tax returns Midnight 31 January 2022 (you can submit up to 28 February 2022 without getting a late filing penalty)

The April 21/22 deadline will be January 2023.

But tax outstanding for 2020/21 must be paid by today to avoid interest

Rob-123

As I say, I will double check but sure I am under £50k for that tax year.

Just wanted to check on the shares as above but sounds like they do not need declaring on NET Income.