Reasons for having to do self assessment.

Dazed_and_C0nfused

singhini said:

OP
a reason to do SA might be that you are a 40% tax payer and perhaps putting large amounts into a SIPP
i put £20k in and the SIPP provider claims 20% relief
I then have to do SA and claim back the other 20%  

Well i was a 40% tax payer years ago
 

That isn't a reason why you have to file a return though.

scoobyjones1

singhini said:

OP
a reason to do SA might be that you are a 40% tax payer and perhaps putting large amounts into a SIPP
i put £20k in and the SIPP provider claims 20% relief
I then have to do SA and claim back the other 20%  

Well i was a 40% tax payer years ago
 

yeah I think you have to work that one out with your SIPP provider and/or HMRC to make sure you have the right tax code and claim back any over payment of tax.
In my own case I am not even in the 20% bracket at the moment.
If and when I make it to state pension age then most of my personal tax allowance will be taken by that. That's another reason why I need to get out of the general investment account and into ISA's and my SIPP.

singhini

Your correct, but in my defence i said "might" and not "have"

singhini

Dazed_and_C0nfused said:

singhini said:

OP
a reason to do SA might be that you are a 40% tax payer and perhaps putting large amounts into a SIPP
i put £20k in and the SIPP provider claims 20% relief
I then have to do SA and claim back the other 20%  

Well i was a 40% tax payer years ago
 

That isn't a reason why you have to file a return though.

Your correct, but in my defence i said "might" and not "have"

InvesterJones

singhini said:

OP
a reason to do SA might be that you are a 40% tax payer and perhaps putting large amounts into a SIPP
i put £20k in and the SIPP provider claims 20% relief
I then have to do SA and claim back the other 20%  

Well i was a 40% tax payer years ago
 

You can also claim back the extra without having to do a SA, just let HMRC know about the total SIPP contribution in a tax year (up to four years ago) and they work the rest out.

singhini

InvesterJones said:

singhini said:

OP
a reason to do SA might be that you are a 40% tax payer and perhaps putting large amounts into a SIPP
i put £20k in and the SIPP provider claims 20% relief
I then have to do SA and claim back the other 20%  

Well i was a 40% tax payer years ago
 

You can also claim back the extra without having to do a SA, just let HMRC know about the total SIPP contribution in a tax year (up to four years ago) and they work the rest out.

Very true. But im not conformable relying on a phone call, id rather do it through a more formal channel.
Each to their own i suppose.

InvesterJones

singhini said:

InvesterJones said:

singhini said:

OP
a reason to do SA might be that you are a 40% tax payer and perhaps putting large amounts into a SIPP
i put £20k in and the SIPP provider claims 20% relief
I then have to do SA and claim back the other 20%  

Well i was a 40% tax payer years ago
 

You can also claim back the extra without having to do a SA, just let HMRC know about the total SIPP contribution in a tax year (up to four years ago) and they work the rest out.

Very true. But im not conformable relying on a phone call, id rather do it through a more formal channel.
Each to their own i suppose.

Indeed, you can do it via official form, personal tax account or a letter as you wish.

singhini

A few years ago HMRC contacted me and asked me to do SA, which i did for about 4 or 5 years.
They then wrote to me saying no need to do it anymore.
I then rang them and said i wanted to be put back onto SA to make sure i was paying the right amount of tax (only to be told by the advisor on the phone..... "it doesn't work like that" (words to that effect) .......... take home message was she wasn't going to put me back on SA

I then told my accountant who told me to ring up again and this time tell them "my accountant has advised me to ring HMRC and i need to make you aware that im about to put £20k into my SIPP so probably need to be put onto SA"

This time i was told, yes that's correct (apparently there are certain "triggers" that will activate SA and putting a lump sum of £10k+ is one of them)
 
Personally i think everyone should be doing SA (over the years its helped me better understand the tax system and i saved alot of tax) 

InvesterJones

Putting a lump sum of £10k+ into a SIPP doesn't trigger a SA request. However they may ask for documentation of the deposit to update their records - this can be provided by letter, or via the dedicated online form for doing this, without needing to SA.

singhini

InvesterJones said:

Putting a lump sum of £10k+ into a SIPP doesn't trigger a SA request. However they may ask for documentation of the deposit to update their records - this can be provided by letter, or via the dedicated online form for doing this, without needing to SA.

Interesting (the HMRC advisor on the phone said the opposite i.e. agreed with what my accountant had said to me)

Is there a list of "triggers" for SA?
and if so does anyone know what they are?