Is this right?

FireWyrm · 15 July 2015 at 7:59AM

Hi

For the first time (like many) I have fallen into the self assessment rules trap because I earn more than £50K and have children. I found out that I had to register for self assessment and so I did giving all my details. I was a little confused and thought that I would have to fill in a self assessment form for 2015 but it turns out, it should be 2016. Be that as it may. I receieved 3 separate letters from HMRC over the last few days demanding tax returns for each of 2015, 2014 and 2013. I dont understand why I have to complete the previous 3 years since I was and remain on PAYE. I just need to fill out one for next year regarding this year.

Can anyone tell me if this is normal or have HMRC messed a simple request up again?

PlutoinCapricorn · 15 July 2015 at 8:23AM

Perhaps they just want to be sure that you don't owe anything from those years. Once the request to file has arrived, unless HMRC have made a mistake failure to complete the returns will result in penalties.

Phoning them might help.

FireWyrm · 15 July 2015 at 8:33AM

But the letters make it clear that the previous years are already late! I didnt even ask to start completing self assessment until a few weeks ago! Common sense would surely tell them that if I had been on PAYE for all of my previous working life, why would I need to complete assessments for the previous years. It doesnt make any sense.

zygurat789 · 15 July 2015 at 10:04AM

FireWyrm wrote: »

But the letters make it clear that the previous years are already late! I didnt even ask to start completing self assessment until a few weeks ago! Common sense would surely tell them that if I had been on PAYE for all of my previous working life, why would I need to complete assessments for the previous years. It doesnt make any sense.

That doesn't mean that you have no other taxable income. You may have been paying HR tax and not declaring any interest you have been receiving.
How are HMRC supposed to know everything about your affairs just because you are on PAYE? Think about it.

xylophone · 15 July 2015 at 10:06AM

You could telephone to enquire why the returns are required - 7.45 am is supposed to be a good time.

Failing that, complete and submit the returns with a covering letter?

See also http://www.thisismoney.co.uk/money/pensions/article-2192562/Trick-avoid-losing-child-benefit-boost-pension.html

https://www.gov.uk/child-benefit-tax-calculator

agrinnall · 15 July 2015 at 10:17AM

If your only income is PAYE then it's probably easier to just complete the returns, which is a simple process if you have you P60s available, and the previous years will confirm that you don't owe anything.

However, the chances are the PAYE isn't your only income, and that you'll have interest from savings, dividends, etc. It's quite possible at your level of income that in fact you do owe some higher rate tax on these, and the tax returns will show this. So you'll need to gather together your statements for the relevant years so that you can fill in the appropriate sections on the returns.

If you don't already have a UTR I would strongly suggest that you register for one and do your SA online as it's much easier than filling in the paper forms.

PlutoinCapricorn · 15 July 2015 at 10:51AM

You have attracted their attention. They may just be requesting figures for previous years just on the off-chance. HMRC and DWP seem to be scratching around for money sources like people looking down the backs of sofas and in old jacket pockets. They want to hear directly from you whether or not you have had any potentially taxable income apart from PAYE.

quietriot · 15 July 2015 at 4:29PM

FireWyrm wrote: »

But the letters make it clear that the previous years are already late! I didnt even ask to start completing self assessment until a few weeks ago!

You get three months from the issue of a return to complete it.

zagfles · 15 July 2015 at 4:40PM

FireWyrm wrote: »

But the letters make it clear that the previous years are already late! I didnt even ask to start completing self assessment until a few weeks ago! Common sense would surely tell them that if I had been on PAYE for all of my previous working life, why would I need to complete assessments for the previous years. It doesnt make any sense.

Was your income below £50k in those years, or did you not have children?

PlutoinCapricorn · 15 July 2015 at 4:48PM

I have faint memories of another poster in a similar situation. She phoned HMRC, and they agreed that she did not need to complete for previous years. It is best to get it in writing I think.

FireWyrm · 16 July 2015 at 10:35AM

zagfles wrote: »

Was your income below £50k in those years, or did you not have children?

No, my income was below £50K. I have just secured a job where my salary is £55K meaning I have to fill out a tax return. I only just started it in June, so I incorrectly thought I would have to fill it out for this year. Turns out, I should be doing it for next year but never having done this before, I made a mistake and applied earlier than I should. I didnt expect to have to complete the preceeding 3 years as well. I have the P60's and I can do that, I just dont understand why.

I dont have any other income than my job. We are a single income family and whilst £50K would seem to be large sum of money, I can say it isnt when you factor in a house and three children. I intend to get some savings going in the future, but all savings tax will be taken at source. I dont have investments yet but when I do, I will be sure to add it.

Is this right?

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