do i need to self assess this january ?

mcdermott_c

Quick question.

Thought i had this all clear in my mind but someone told me otherwise and am now panicking.

My wife started working for her self last may (2007) after having about 18mths off from work due to our baby being born (didnt earn anything during this time). I thought that as she started work in may 2007 her 2007/2008 tax return would be due in January 2009 so had no need to submit a self assessment tax return in January 2008 ? is this correct ? We have received the reminders to get a self assessment tax return in but cant understand why, and a friend has now said that she needs to submit a tax return in January 2008 ?

hope someone can out my mind at ease

thanks

Elaine_Wilson

If she has received a reminder then she must have been issued with a return.

The 2007 return will need to be filed this month but if she earned nothing then she will presumably only have to declare any investment income, such as bank interest. If she did receive interest, tax would probably have been deducted so there may be a refund due.

You are right that the self employed income will not be declared until next year. I hope she registered this by August last year and is paying the relevant national insurance contributions.

Debt_Free_Chick

Elaine_Wilson wrote: »

If she has received a reminder then she must have been issued with a return.

I'm not so sure. I think they just mass-mail everyone who is recorded as self employed.

I've completed and filed my return - but I'm still getting the standard "it's got to be in by 31 January" letters

mcdermott_c

Elaine_Wilson wrote: »

If she has received a reminder then she must have been issued with a return.

The 2007 return will need to be filed this month but if she earned nothing then she will presumably only have to declare any investment income, such as bank interest. If she did receive interest, tax would probably have been deducted so there may be a refund due.

You are right that the self employed income will not be declared until next year. I hope she registered this by August last year and is paying the relevant national insurance contributions.

Hi thanks for reply elaine.

I am confused why she has been sent a reminder if she didnt earn anything last tax year due to not working. On her last self assessment tax year which she submitted Jan 2007 (for 2005/2006 tax year) she stated that she had stopped working as of January 2006 (she had been a self employed nanny up until January 2006 when our baby was born, paid tax for 2005/2006 and gave up working). She never worked again until May 2007 so had no earnings in apr 2006/ apr 2007 tax year.

I didnt realise you had to submit a return even if she didnt work during that time. Will fill one in online tonight as shouldnt take long if she had no earnings, interest on savings etc...

"I hope she registered this by August last year and is paying the relevant national insurance contributions"

When you say registered do you mean she informed IR that she had started a business and was trading ? if so im pretty sure she is covered on this. She started working in May 2007 and opened up as a new business and was walked through the business startup process by the business gateway who helped her get started, get registered etc...

Funnily though the last two NI contributions statements she has received have said she didnt need to pay anything, which I thought was odd but never questioned it. If she is due to make NI payments can I phone up and make those in one installment ?

thanks for your help !

Elaine_Wilson

I'm not so sure. I think they just mass-mail everyone who is recorded as self employed.

I've completed and filed my return - but I'm still getting the standard "it's got to be in by 31 January" letters

I thought it was impossible for a reminder to be issued if no request for a return had been sent but don't hold me to that.

I do know that reminders are often sent when the return has been filed months before.

Mcdermott, the return was probably issued because no one had got around to taking her off the list. So it might depend on when the 2006 return was processed. I did ring the Revenue a few years ago to ask why a client had to file a return when the previous one showed that it wasn't necessary. I was told it was because I had filed the return too late for the client to be taken out of the list for the following year. And I filed that return in August! I hope things have improved from then.

As for the national insurance it looks like she has done everything necessary. She might have claimed a small earnings exception and not need to pay at the moment. My main worry was the possibility of a fine for not registering in time.

mcdermott_c

Elaine_Wilson wrote: »

I thought it was impossible for a reminder to be issued if no request for a return had been sent but don't hold me to that.

I do know that reminders are often sent when the return has been filed months before.

Mcdermott, the return was probably issued because no one had got around to taking her off the list. So it might depend on when the 2006 return was processed. I did ring the Revenue a few years ago to ask why a client had to file a return when the previous one showed that it wasn't necessary. I was told it was because I had filed the return too late for the client to be taken out of the list for the following year. And I filed that return in August! I hope things have improved from then.

As for the national insurance it looks like she has done everything necessary. She might have claimed a small earnings exception and not need to pay at the moment. My main worry was the possibility of a fine for not registering in time.

Logged into my wifes online account and it says its waitnig for a tax return to be submitted. Seems crazy since she informed them she wasnt working after her last tax return but hey guess i'd better just do it. Thankfully as she didnt earn anything from working savings etc... shouldnt take too long !

Going to get 2006/2007 years tax return finished asap - and although this isnt due till next january is it possible to submit in mapril this year to get it out of the way ? although i guess might as well leave tax money in my isa for a year to earn some interest ?

cheers

Debt_Free_Chick

mcdermott_c wrote: »

Going to get 2006/2007 years tax return finished asap - and although this isnt due till next january is it possible to submit in mapril this year to get it out of the way ?

2006/2007 must be filed this year i.e. by 31 January 2008.

2007/2008 must be filed by 31 January 2009 - yes, you can submit it at any time after 6 April. But I'm not sure whether HMRC will be ready to accept it online, then.

mcdermott_c

Debt_Free_Chick wrote: »

2006/2007 must be filed this year i.e. by 31 January 2008.

2007/2008 must be filed by 31 January 2009 - yes, you can submit it at any time after 6 April. But I'm not sure whether HMRC will be ready to accept it online, then.

oops i meant was going to start getting 2007/2008 ready.

On the NI contributions front my wife phoned them up and apparantly we have been overpaying (dont know how) but hey means we have nothing to pay till July so thats cool !

Thanks for all the advice.