Obtaining BBSI from HMRC

subjecttocontract

I keep detailed records of interest I get and submit a self assessment every year. Any difference between mine & HMRC figures has never been more than £20 and I don't consider that enough to spend time following it up.

masonic

subjecttocontract said:

I keep detailed records of interest I get and submit a self assessment every year. Any difference between mine & HMRC figures has never been more than £20 and I don't consider that enough to spend time following it up.

Agree completely on the record keeping. But I would suggest if you complete a tax return you should not waste any time at all with HMRC's  flawed BBSI analysis. I have over several tax years reported a figure that is hundreds of pounds different to the figures they will have received (due to multi-year fixed term accounts where access to interest was not permitted). This has at no point been queried, but should it ever be followed up, I shall have the required evidence.

Bigwheels1111

As above. Self assessment sorts all these issues out.
So not asked for a statement as the accepted my return.
Plus takes under 20 minutes to complete.
Takes longer for them to answer the phone.
Not sure with the changes they have made, but paying the tax was an interest free loan.
I knew how much I need to pay in April, earned interest on the money until December when I paid the bill.

Using self assessment, let me keep my 1257l tax code this year.
HMRC were fine with this.
Better for me anyway.

poseidon1

Another thumbs up for submitting annual self assessment returns , although in my case mandatory since all income from various sources gross untaxed.

I have no idea what HMRC have recorded at their end by way of interest I receive from the 15 to 21 saving accounts I have running annually, but since all is reported via year end certificates received from the various banks, I have no concerns about HMRC enquiring into my numbers and the  tax I  declared thereon.

Now into my 15th year of self assessment without an enquiry, and despite tax bill now increasing year on year, relishing this measure of control over my tax affairs. That said, I am hoping I will not be pulled into MTD next year, which will no doubt require more hands on frequent compliance admin.

Ocelot

Will they just let you do a self-assessment if you ask? 

singhini

Ocelot said:

Will they just let you do a self-assessment if you ask? 

About 12 years ago I was put into Self Assessment by HMRC. After filing for four consecutive years, they reviewed my situation and told me I no longer needed to complete a tax return.

However, I actually wanted to stay in the Self Assessment system, so I called HMRC and asked to be added back on ----->  but they said no.

I spoke to my accountant about it, who advised me to call HMRC again and tell them I was planning to make a pension contribution of over £10,000 into my SIPP. 

When I called HMRC back and told them about me wanting to put £10k into a SIPP, they confirmed that this is one of the circumstances that can trigger the need for Self Assessment, and they reinstated me.

So the short answer is that HMRC won’t usually put someone into Self Assessment just because they prefer it. But there are "triggers" for doing self-assessment. So if you do want to do SA, ring them up and say your planning on putting £10k+ into a SIPP during the tax year and you need to register for SA ----> if you do or do not put £10k+ into a SIPP is neither here nor there. 

masonic

Everyone has the right to submit a voluntary tax return. A few years ago some legislation was passed requiring HMRC to treat this on an equal footing to a return they have requested. The issue is that, like above, you may not be enrolled onto the online system initially. However, I have seen an account suggesting once a voluntary return is submitted for the first time, HMRC will enrol you onto the online system to save them processing future paper returns.

gt94sss2

If someone wants to submit a voluntary tax return but HMRC haven't asked for one, they can also print and complete a paper tax return from https://www.gov.uk/guidance/how-to-complete-your-self-assessment-tax-return-for-last-tax-year