Tax return queries

katejo

I have never needed to complete a tax return (standard rate tax payer and all tax taken through PAYE). According to the questions here Check if you need to send a Self Assessment tax return - GOV.UK, this hasn't changed. However it does tell me here You do not need to send a Self Assessment tax return - Check if you need to send a Self Assessment tax return - GOV.UK that I need to contact HMRC to declare interest over £500 on share dividends which I do get from a unit trust investment which is feeding into my S & S ISA. In January 2025 I did ring HMRC to declare the interest on dividends for 2023-2024 but the lady who spoke to me was rather vague/unconvincing. I  was left unclear as to whether I had done it correctly. I now need to do the same for 2024-2025. Does this sound correct? 
I may retire in the spring/summer 2026 (April or later) and start taking my DB pension. I won't be eligible for the state pension until 2030. Will the tax on my personal pension still be taken through PAYE or will I have to complete a tax return for the 2026-2027 tax year? 

Dazed_and_C0nfused

katejo said:

I have never needed to complete a tax return (standard rate tax payer and all tax taken through PAYE). According to the questions here Check if you need to send a Self Assessment tax return - GOV.UK, this hasn't changed. However it does tell me here You do not need to send a Self Assessment tax return - Check if you need to send a Self Assessment tax return - GOV.UK that I need to contact HMRC to declare interest over £500 on share dividends which I do get from a unit trust investment which is feeding into my S & S ISA. In January 2025 I did ring HMRC to declare the interest on dividends for 2023-2024 but the lady who spoke to me was rather vague/unconvincing. I  was left unclear as to whether I had done it correctly. I now need to do the same for 2024-2025. Does this sound correct? 
I may retire in the spring/summer 2026 (April or later) and start taking my DB pension. I won't be eligible for the state pension until 2030. Will the tax on my personal pension still be taken through PAYE or will I have to complete a tax return for the 2026-2027 tax year? 

What do you mean by interest on share dividends 🤔

Having a pension in payment isn't a reason to need to file a tax return.  PAYE can be operated on (non State) pension income just like it is for earnings.

katejo

Dazed_and_C0nfused said:

katejo said:

I have never needed to complete a tax return (standard rate tax payer and all tax taken through PAYE). According to the questions here Check if you need to send a Self Assessment tax return - GOV.UK, this hasn't changed. However it does tell me here You do not need to send a Self Assessment tax return - Check if you need to send a Self Assessment tax return - GOV.UK that I need to contact HMRC to declare interest over £500 on share dividends which I do get from a unit trust investment which is feeding into my S & S ISA. In January 2025 I did ring HMRC to declare the interest on dividends for 2023-2024 but the lady who spoke to me was rather vague/unconvincing. I  was left unclear as to whether I had done it correctly. I now need to do the same for 2024-2025. Does this sound correct? 
I may retire in the spring/summer 2026 (April or later) and start taking my DB pension. I won't be eligible for the state pension until 2030. Will the tax on my personal pension still be taken through PAYE or will I have to complete a tax return for the 2026-2027 tax year? 

What do you mean by interest on share dividends 🤔

Having a pension in payment isn't a reason to need to file a tax return.  PAYE can be operated on (non State) pension income just like it is for earnings.

The 2023-2024 consolidated tax certificate for my unit trust investment gave a figure for gross interest on Interest distributions. The HMRC person took this figure from me but she didn't seem that sure about it. 

poseidon1

Judging from you past posts below on this subject, you appear to have recurring difficulties in determining how to report the interest income being generated from your unit trust investment.

https://forums.moneysavingexpert.com/discussion/6544377/re-simple-tax-return-for-2023-2024#latest

https://forums.moneysavingexpert.com/discussion/6581147/income-from-a-unit-trust#latest

https://forums.moneysavingexpert.com/discussion/6584219/tax-return-query-re-income-from-a-unit-trust#latest


It would be helpful not to constantly refer to 'share dividends' ( taxable at 8.75%) when you are actually receiving unit trust interest distributions ( taxable at 20%). Confusing for people who respond to your post and no doubt confusing to HMRC if you don't properly describe the exact  nature of the taxable investment income you received.

Incidentally, how large is this unit trust investment and on your valuation statement has it made a profit exceeding £3,000?

I see  from a past post that you are making efforts to sell £20k annually to feed back into your ISA. How many years left before you think you will complete that excercise, and rid yourself of this taxable income?