First Time Filling in Tax Return

[Theonlyoneiknow]

Hi,

I was just wondering what kind of questions they ask? Is it pretty straightforward?

I received a one off bonus this year that has taken me marginally over the limit by about £1500. I did put some of my bonus into my pensión to try and avoid this but obviously miscalculated. So this will be the only year i need to do it as wont have an inflated salary next year.

Do they ask about savings? Does that matter as i am sure i automatically pay tax on the interest? Will it mean i need to pay a higher rate of tax on the interest?

Thanks!

[LIZS]

Most of the info comes from your P60 and statements of interest from savings, dividends etc. The amount you have already paid at source is taken into account so you'd only be liable for hr on the amount above the threshold. Once you are registered with HMRC it is likely you will have to submit a return for a few years until they are satisfied that you are no longer underpaying.

[Theonlyoneiknow]

Thanks LIZS. I am gutted as if I had put in another 500 of my bonus into my pension I wouldn't have all this palava!

Have also read I need to declare all of my savings interest (except ISAs) which although I will have been taxed at 20% I will need to pay 40% on this :( Will they ask me to declare all my savings every year now? I haven't been paying 40% on them before, will they make me backpay it?

I have found my gift aid receipts which might help but then I also get medical insurance which will bump it up again?

Am very cross with myself!

[LIZS]

You will only get charged on 40% for total income above the threshold so if your earnings alone are above it then savings interest will effectively be recalculated at 40%. You only have to declare the income not the savings itself. I think they can ask you to complete returns retrospectively but if it is marginal they may not bother.

[LIG1979]

Sorry to highjack but when do you need to do the tax return for the 2013-2014 tax year? I never realised that higher rate tax payers has to pay extra tax on savings interest - oops!!

[Theonlyoneiknow]

Hijack away! I dont think it is until Oct this year or Jan next year if online.

I am feeling a bit stressed about it and worrying they might make me fill in back dated forms for the interest. Gah. Am vexed that by miscalculating the extra £500 into my pensión it will cost me about £350 in child benefit :-(