No need to fill in annual Tax Return

[WendyS]

The Revenue have now told me I am no longer required to send them an annual tax return. My first reaction was unmitigated joy. But in view of the many mistakes made by Government departments, how great is the risk that I will end up paying too much tax as a result?

[Ethel]

Are you self-employed or employed?

Is your tax in any way complicated or unusual?

It shouldn't be too difficult for you to work out what you should be paying - keep a close on it.

[dzug]

The risk is low provided you keep an eye on what you are paying and remember to claim any allowances you are entitled to.

[antiguru]

The most common reason I've found for the Taxman taking this approach is if all the assets in your estate are taxed at source. By this I mean your building society or bank pays you interest net and any dividends you may earn have the tax credit calculated before you are paid. Likewise your earnings are PAYE. Provided you are a lower rate tax payer the IR takes the view that your return is not worth the admin for them.

If this is the case for you, all will be well unless you go over the tax threshold and become a higher rate tax payer or you have a chargeable event that requires a declaration to the taxman, in which case you will need to contact them.

In the meantime although you're quite right to worry about the incompetence of a government body, in this case your tax is most likely to be being calculated by your income sources and it is those you should monitor.

Hope this helps.