Tax return

fpvt2 · Post by **fpvt2** » Sat Nov 26, 2005 3:59 pm

Once you work in the UK for an employer (not self-employed), do you need to file tax return like in the US, or the employer will take out the tax from your salary monthly and you do not need to file tax return ?
Thanks.

Papafaith · Post by **Papafaith** » Sat Nov 26, 2005 6:11 pm

You do not need to file tax returns when you are an employee of an organisation.

MWazir · Post by **MWazir** » Sat Nov 26, 2005 6:36 pm

Papafaith wrote:You do not need to file tax returns when you are an employee of an organisation.

Actully, if you have substaintial or sumplimentary earnings, you may be contacted and asked to file your details.

Happened to one of my colleagues at work.

fpvt2 · Post by **fpvt2** » Sat Nov 26, 2005 8:47 pm

If you do not get contacted, that means you do not need to file the tax return, right ?
Thank you.

Post by **John** » Sat Nov 26, 2005 10:35 pm

fpvt2 wrote:If you do not get contacted, that means you do not need to file the tax return, right ?

Not necessarily! If you owe them money for the tax year for any reason then you have six months after the end of the tax year ... to 5th October ... to notify HMRC of that fact. How do they react? By sending you a Self Assessment tax return to complete.

But what if you don't tell them? Then when they do find out there is the possibility of internet and penalties applying.

Why might you owe them money? Maybe absolutely nothing to do with your employment ... investment income from "stocks and shares" ... rental income from property ... etc.. Or it could be because of your employment ... maybe a benefit that was not "coded out" in the year? For example, you get given the use of a company car towards the end of the tax year and your code number is not adjusted on account of that company car. That could easily mean that you have a tax liability owing at the end of the tax year.

Finally, if you do get sent a Self Assessment Tax Return ... don't ignore it ... even if you think no tax is owed. A penalty will be applied for late filing.

fpvt2 · Post by **fpvt2** » Sat Nov 26, 2005 11:00 pm

Thanks.
I am still unclear.
How do we know that we owe them money ? (assuming we do not have extra income like stock, rental, etc.)
Shall we wait until they send us Self Assessment tax return ?
Thanks

Post by **John** » Sat Nov 26, 2005 11:11 pm

If no income other than from the employment it comes done to this ... was the code number being operated at the end of the year correct? If it was and the normal cumulative basis was being used .. rather than Month1 or Week 1 .... then the correct amount of tax will have been deducted from your pay.

However, for example, you are aware of some benefits not taken into account in setting the code number then it could well be the case that you owe HMRC some money.

Is that any help?

fpvt2 · Post by **fpvt2** » Sun Nov 27, 2005 2:58 am

>was the code number being operated at the end of the year correct ?

>you are aware of some benefits not taken into account in setting the >code number then it could well be the case that you owe HMRC some >money.

Since I do not know anything about tax, I might not know if the code number being operated at the end of the year is correct and I might not be aware of some benefits not taken into account in setting the code number.

Will they send us Self Assessment tax return if we owe them money ?

Thanks

dajumper · Post by **dajumper** » Tue Dec 20, 2005 6:08 pm

Hi, not sure if it has been previously discussed in relation to madatory lodgements of tax returns but one of the reasons given to a friend of mine whose application was refused because no tax return was supplied. I know no where in the application form of guidance notes does is say a tax return is required.. only recommended. But that was apparently the reason given by the HO. That really sux!

Post by **John** » Tue Dec 20, 2005 7:55 pm

Are you able to quote the reasons for rejection in full? I just suspect that there is more to this than we are currently being told.

It is clear from what you post that the tax return matter was only one of his problems ..."one of the reasons given to a friend of mine whose application was refused because no tax return was supplied" .... what else did they mention?

fpvt2 · Post by **fpvt2** » Tue Dec 20, 2005 10:19 pm

What country was the tax return to come from ?

dajumper · Post by **dajumper** » Wed Dec 21, 2005 9:38 am

Sorry, should have been clearer... It was the ONLY reason for rejection. I forget the exact reason but it was along the lines of not supplying a tax return. My friend has appealed as well as stating all the facts such as i mentioned previously on how the form and guidance notes only recommend 2 forms of income proof (it does not say tax returns are a must). The decision on the appeal was the same - No tax return was required. Not sure if it was to do with him working through a limited company. The application was lodged in the UK

dajumper · Post by **dajumper** » Wed Dec 21, 2005 9:40 am

Not sure which country's tax return but i would presume one from the UK as he was working here almost all of the 12 months.

Post by **John** » Wed Dec 21, 2005 9:59 am

Not sure if it was to do with him working through a limited company.

If he is the sole shareholder and sole director of that company, maybe the company's tax affairs were not totally up-to-date?

Without knowing the exact wording of the reason for rejection it is difficult to make any further comment on this matter, except :-

one of the reasons given to a friend of mine whose application was refused because no tax return was supplied

It is not actually clear what your friend was applying for? So he was rejected ... for what type of application?

dajumper · Post by **dajumper** » Wed Dec 21, 2005 1:25 pm

We're discussing the HSMP right? Not having a tax return was the only reason given to him for not satisfying the Salary component. Total income income earned was way inxs of the minimum £40k

Post by **John** » Wed Dec 21, 2005 2:01 pm

OK, the HSMP extension. I thought it was worth making sure.

On a salary "was way inxs of the minimum £40k" this person is no doubt into Higher Rate tax. And any benefits from the employment not "coded out" in the year?

What I am getting at is that it is possible the person was under an obligation to notify HMRC of chargeability no later than 5th October following the end of the tax year.

Is the refusal anything to do with not complying with that legal requirement?

It really would be useful to know the exact wording of the reason for rejection. Without that we are fishing in the dark to understand what has gone on.

fpvt2 · Post by **fpvt2** » Wed Dec 21, 2005 3:47 pm

Was your friend rejected for a new HSMP application or HSMP extension ?

If he worked in the UK, most people do not have to file tax return (unless you have extra income that needs to be reported, please read the previous posting here), so you will not have a tax return. Somebody mentioned that you will have a P60, though, which is like a statement that listed your income and how much tax you pay.

dajumper · Post by **dajumper** » Thu Dec 22, 2005 1:56 pm

It was for a new application...

Sorry, i don't have access to the exact wordings but he would have raked in c£80k. Maybe as you have stated earlier, the high income may have required a tax return to be lodged.

fpvt2 · Post by **fpvt2** » Fri Dec 23, 2005 4:12 pm

Did he send his P60 with his application ?

dajumper · Post by **dajumper** » Wed Dec 28, 2005 1:50 pm

none of those P60 or P anything were submitted. Just the contract from employment agencies stating the hourly rate c£40, weekly payslips, all bank statements etc..

Post by **John** » Wed Dec 28, 2005 2:15 pm

Is he actually an employee of the employment agency or is he a contractor? Those "payslips", do they show deductions of tax and NI? Or alternatively, do they show any addition of VAT?

fpvt2 · Post by **fpvt2** » Wed Dec 28, 2005 2:44 pm

>Those "payslips", do they show deductions of tax and NI?

If working in the UK and the payslips that you receive from your employer already shows deductions of tax and NI, and you do not file tax return (because no extra income, etc.), do you still need to submit P60 ?

Post by **John** » Wed Dec 28, 2005 3:04 pm

Earlier in this topic there was a discussion about whether a Self Assessment tax return needs to be submitted, or not. Any figures on the P60 would of course be shown on any Self Assessment return.

In the absence of a tax return form it certainly can't do any harm to include the form P60.

dajumper · Post by **dajumper** » Wed Dec 28, 2005 3:09 pm

The payslips from the employment agencies, only state gross weekly income earned per slip. That is no tax is deducted... It is upto his ltd company to pay tax whether that be company or PAYE i would assume.

Another question re: the period. If i apply in Jan 06, do i provide earnings for the period Jan 05-Dec 05?

THanks

Post by **John** » Wed Dec 28, 2005 3:33 pm

And he supplied those "payslips" to support his HSMP application? And no documentation from his Limited Company? In which case I have to say ... no wonder he got rejected!

You need to provide details of earnings up to when you apply, so that will tend to be payslips in the main, given that the tax year ended last 5th April.

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Tax return

Tax return