Self Assessment and Savings

spooon

Hi guys, wasn't sure where to put this so apologies if in the wrong place.

My mother is in her late 60s and has all of a sudden been asked to submit self assessment returns for the last five years. She is very anxious and troubled. They refuse to pinpoint what exactly has led the tax man to demand these returns. She has chopped and changed her savings accounts several times during that period and filling in these returns is going to be one hell of a task.

Any thoughts or advice pls on how she should proceed? Is she bound by law to fill these returns in? She believes she doesn't owe any tax during that period but cannot be 100% sure. Her memory isn't the best.

Thx in advance.

chesky369

Have they sent her the forms yet? When they do, there should be a so-called helpful leaflet to assist with filling them in. The Inland Revenue have recently told me that they want me to fill in a self assessment for the year and I'm waiting in fear and trepidation for it - the thought of having to do one for five years would put me in a dead faint. Poor old mum. Wonder if the Citizens Advice Bureau would help, but I suspect it's less the form-filling than the finding the annual tax statements etc. Dreadful.

EdInvestor

Yes it's collecting the info that's the real hassle. Once you've done one and grasped how it works, the others will be a doddle.The people in the local tax office are helpful with filling in the form I've found.

The Revenue is having a blitz on tracking down people with undeclared rental income at the moment, and also may be about to start charging tax on small pensions which had previously been ignored.

seven-day-weekend

The self-assessment forms are not too hard to do if you follow the instructions and as Edinvestor says the people at the tax offices are usually very helpful.

I'm glad to say that in this particular thing I am very organised and keep all the pieces of paper my bank etc send to me about tax, so I always have the info to hand.

At this precise moment however, although I have alll the information, I am struggling to fill in a Spanish tax return! And the Hacienda (tax office) are not at all helpful, even the link to the website they gave me was non-existent and I had to track it down another way.,

Also, the tax-speak Spanish on the forms is beyond me. I expect I'll have to pay someone to do it for me......

Think yourself lucky you only have English forms to do! Best of luck.

Merrywidow

Dear Spooon

This happened to me a few years ago (I too am in my 60's). Basically the personal allowance before tax increases after 65 and they have to issue new tax codes to show this. A lot of their work is just a fishing expedition. I rang them up and played the "little old lady" game and they were very understanding. You can only be honest with them.
Don't forget that the State old age pension is not taxed up front and as I have a few other pensions they collect the tax by upping the tax on my other pensions.

If your mother has no other income than her State Pension, I guess they can't collect any tax. Hope others may be of more help.

spooon

thanks for your replies. if it turns out she has underpaid tax will she face any penalties etc? it's the implication that she has done something wrong that is causing her stress. i tell her not to worry because the tax man will only take/give what is owed. i did read in an ageconcern leaflet that not being sent tax forms doesn't free you from the need to declare income where extra tax is owed. that bit is worrying.

seven-day-weekend

Is your mother's income from all sources greater than her tax code allowance? If so, she will be liable for tax but tbh I think as long as she is honest about it they will just ask her to pay it.

If her income from all sources is below her personal allowance, then she won't need to pay any tax.

chesky369

I don't think the tax people are unreasonable in this area - they expect us to be a bit useless as regards to tax rates and allowances, etc. I suspect that if your mum has been underpaying for a few years they will probably try to 'even it out' by repaying the amount over the next couple of years. It's really annoying though, as you expect THEM to be expert enough to work things out. After all, most transactions are recorded in one way or another, through banks, insurance companies, etc. The annual tax records we get from banks are only telling us that the tax has actually been paid already.

insured

Hi spoon,
It is likely that if your mum has been changing bank accounts and she has only her state pension, then tax would have been deducted unnecessarily.
She is probably due a refund if anything.
However, what I really wanted to tell you is that I work as a volunteer for a charity called TOP.
It gives free tax advice to anyone over pension age with taxable income of less than £15k.
The service is free. We also do home visits at no cost.
Whoever comes out can tell you how to get the "missing" info if necessary.

If you have any queries, contact TOP on the helpline:

0845 601 3321

or write to: TaxHelp for Older People
Pineapple Business Park, Salway Ash, Bridport, Dorset, DT6 5DB

E-mail [EMAIL="taxvol@taxvol.org.uk"]taxvol@taxvol.org.uk[/EMAIL][EMAIL="taxvol@taxvol.org.uk"][/EMAIL]