Tax

[JinnyJoan]

In my working life I just paid the regular tax from wages etc so have never had to do a tax return ever.

Can anybody tell me when do you have to fill in a return (ie not month etc) but if you have savings etc.  thanks

[youngmafbog]

https://www.gov.uk/self-assessment-tax-returns/who-must-send-a-tax-return

Should help.  They are easy now online.

[newmodarmy]

Hmrc are notified by banks of  of savings interest so you may not have to. At one time I used to be sent one every year as a higher rate taxpayer but they stopped coming maybe 20 years ago...hmrc seem to know everything they need to know now.

[bednobs]

my understanding was once you have to do one, you ALWAYS have to do one.

[youngmafbog]

No, if your circumstances change you no longer have to.  My wife is no longer a Company director and they told her not to complete anymore unless things change again.

[bednobs]

that's good.  we have fallen into the child benefit tax return over the last few years, but now it's gone up (faster than wages!) it might mean i don't have to do one from april

[Old_Geezer]

You fill in a return whenever the taxman sends one.

Then you take a day off work trying to get all the info together and filling in as much of the form as you can.

[Buenchico]

JJ:
Income Tax is, unsurprisingly, charged on 'taxable income'.  As far as the tax man is concerned, 'taxable income' includes earnings, interest on savings, dividends from shares, income from renting out property, etc.  However it doesn't include things like gifts, lottery winnings, competition prizes or bequests from wills.

In many cases the tax man will already know everything there is to know about a person's taxable income, with any tax payable automatically being deducted. (e.g. an employee of a business will have his/her tax paid under the PAYE scheme and many savings accounts only pay out interest after tax has been deducted).

It's only when someone has taxable income that the tax man doesn't automatically know about that they'll need to submit a tax return.  So, for example, someone who rents out a house (or, say, who takes in a lodger) will have taxable income that the tax man won't know about unless the person complies with their legal obligation to submit a tax return.  Similarly, someone who buys designer dresses from charity shops and who then sells them for a profit on eBay is operating as a 'sole trader' and should also submit a tax return (unless they make less than £1000 p.a. from doing so).  

[JinnyJoan]

so if you get over £1000 interest on a savings account you must complete a tax return 

[newmodarmy]

No.

HMRC will  be informed, but not until some time after the end of the tax year. 

[JinnyJoan]

er don't get that answer as there are two parts to it

no

HMRC will  be informed, but not until some time after the end of the tax year. 

that means to me the tax of the savings must be paid after all

 

[JinnyJoan]

I may look for ISA as you don't pay tax on them -

[newmodarmy]

For non isa savings the banks etc will notify hmrc of your interest but it may be August before they collate all the info. If you owe any tax on savings interest from last tax year they'll normally adjust your tax code in the following year. Or you could be asked to pay it as a one off 

[Fibonacci]

If your annual savings interest takes you over your personal savings allowance [£1000]. HMRC will have all the details of your interest etc. and will claim back any tax due from one year by adjusting your tax code for the following tax year and should send you a letter advising you of this. You should be able access your tax situation at UK Gov Gateway website.

https://www.gov.uk/personal-tax-account#:~:text=To%20use%20this%20service%2C%20you,have%20not%20used%20it%20before.

ISA savings are a good idea if you think you income from savings will exceed £1000.

[Fibonacci]

Newmodarmy is correct they may give you the option to pay any tax due in a single payment.

[Maydup]

If may or may not be relevant to you but there is a £5,000 additional interest allowance for anyone on a low income. If you're income is below £12570 then you can earn £5k+£1k interest park tax free. 
The £5k is reduced for every £ you earn over the £12570.