DH been asked to do a tax return - why?? and when??

[crokky]

DH did a tax return a few years ago (he's a salaried employee with no other income) and the tax bill was about £1. Then he got a letter saying he no longer needed to do tax returns. Not surprising as he has nothing other than a salary (which we spend!!).

Anyway we just got another letter out of the blue saying that was incorrect and that he should start doing tax returns again. Our circumstances have not changed - he earns his salary and it is taxed using PAYE. He has no assets (apart from our house, which is mortgaged) or other income (current account is offset with mortgage). So he has no tax to pay.

So why do they want a tax return? And they haven't stated what year they want them from? Has anyone had a letter like this? Not sure what to do. Seems a total waste of everyone's time to do a return for 08/09 when there is nothing to pay?

Thanks for any help!

[WhatFreshHellIsThis]

Not sure why he should have been selected, but it's worth doing them IMO, as sometimes employers get your tax wrong. I do a tax return and frequently get a rebate.

[crokky]

Oh right, hadn't considered that we'd be getting money

[MilleniumHandNShrimp]

If you are a higher rate tax payer you often have to fill them in. If you are self employed etc. Then I think they choose a random selection of people to do them.

BTW you have NEVER paid the correct amount. I had to send a cheque for 83p. I queried this, and they said that PAYE is only calculated in full £s, so if everything has been calculated correctly there is pretty much always an amount of less than £1 owing.

madness

[Niecie]

They will send you a tax return in due course. I had a letter like this a couple of months ago and have since got the return in the post.

It will probably be for the last tax year i.e. 2008/09

[Eddas]

when they want him to do a return they will send him a return, so don't worry about it atm, this is just a letter advising him that he will get one in the future. And millenim is right, they often send higher rate tax payers a return. It's to do with other things that are taxed at source(eg bank interest and dividends) being taxed at basic rate, so if your a higher rate tax payer you haven't paid enough tax on the other things. I know you said you don't have any but you probably have some, like bank interst. I'm always with people who are higher rate tax payers(Not saying you!) that say they don't earn any bank interest.

And sometimes HMRC get it wrong and send people returns to complete when really there's no need! Maybe once he's filled out one they'll send another letter saying he no longer needs to complete them.

[crokky]

Eddas - we really do have no bank interest because we have one current account and one savings account and both are offset against the mortgage. We have no other money anywhere (shame ).

So it looks like the letter is just saying that they'll send a return for him to complete which I suppose we'll do, but it just seems quite a big waste of time.

Thanks for your replies - really helpful.