Will I get a tax return?

I started paying 40% tax for the first time last year thru' PAYE. Will I get a tax return to fill in this year, to declare things like interest on my meagre savings? Also, I currently pay 22% tax on the excess between my work mileage allowance and the inland revenue rate (22% on 13p!). Will I have to save up money to make up the shortfall between the 40% and 22% rate? Oh well, at least I benefit from 40% tax relief on my work pension - until they change it all or the company I work with goes out of business taking the pension fund with it......

Reply to
Neaco
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People who are taxed through PAYE and not previously issued with tax return are unlikely to start receiving one. But there's no need to wait. After 6 April, write to or phone your tax office requesting one. Any excess tax will normally be collected through PAYE by adjusting your code, but it may not come into operation until tax year after next, 2006-7. Or it may be offset against any tax rebate due after completing your 2005-6 tax return, if you tick the appropriate box.

Alec

Reply to
Alec

Until this year, in my experience one you'd joined the 40% club and started submitting tax returns, the IR automatically sent a tax return every subsequent year. After I'd completed and submitted my 2003/4 return last September, the IR wrote to me and said that I needn't bother submitting future returns (even though I'm still a higher rate taxpayer with other taxable income).

It wasn't immediately clear why they did this, since it also made clear that the onus is still on the individual to inform the IR of

On checking with colleagues, one or two had had similar letters and the view was that the IR were in future devoting their reources to large scale tax investigations rather than run of the mill personal tax aseessments.

I'd suggest you wrote to the IR saying that you've just joined the 40% club and asking for a return. Chances are they'll say don't bother, but at least you've shown good faith.

Sorry, don't know the answer to your mileage question.

Rgds __ Richard Buttrey Grappenhall, Cheshire, UK __________________________

Reply to
Richard Buttrey

Surely anyone who is a higher rate tax payer AND has a interest paying bank account OR makes a pension contribution, will need a tax return?

Geoff

"Richard Buttrey" wrote >

Reply to
Geoff

In the last budget changes were made so that you no longer need to complete a tax return just for being in the 40% bracket (as long as your income stays below 100,000). Your mileage allowance is less than the inland revenues rates of 40p for up to 10,000 miles and 25p thereafter so you can claim relief on the difference so call your local tax office and request a form P87 to claim back the difference.

Reply to
John Bell

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