AteMoose Posted March 22, 2012 Share Posted March 22, 2012 So... this next tax year I become a Higher rate tax payer via PAYE! Um is there anything I need to prepare for? If so do I need to fill in a tax return form and if so what records do I need to keep to fill out my first tax return form? Link to comment Share on other sites More sharing options...
Bossybabe Posted March 22, 2012 Share Posted March 22, 2012 So... this next tax year I become a Higher rate tax payer! Um is there anything I need to prepare for? If so do I need to fill in a tax return form and if so what records do I need to keep to fill out my first tax return form? Don't worry. They always find you. A friend of mine had a demand for £21k from HMRC last week. Her pension is just £11k. HMRC caved in when she phoned to complain. Link to comment Share on other sites More sharing options...
AteMoose Posted March 22, 2012 Author Share Posted March 22, 2012 Um.... that doesn't sound good would rather be proactive! Could I pay more money into a pension to avoid paying the extra tax and having the hastle of filling in a tax return? Link to comment Share on other sites More sharing options...
Georgia O'Keeffe Posted March 22, 2012 Share Posted March 22, 2012 Um.... that doesn't sound good would rather be proactive! Could I pay more money into a pension to avoid paying the extra tax and having the hastle of filling in a tax return? Youre part of the A team now, whats not to love? Link to comment Share on other sites More sharing options...
scottbeard Posted March 22, 2012 Share Posted March 22, 2012 So... this next tax year I become a Higher rate tax payer via PAYE! Um is there anything I need to prepare for? If so do I need to fill in a tax return form and if so what records do I need to keep to fill out my first tax return form? Mostly there's no change if you're employed as they collect it all via PAYE. However, strictly as a 40% tax payer you should be paying tax on 40% on bank interest (except of course ISAs which are tax free) which means you should fill in a tax return, although if your interest income is small HMRC may not be bothered. You should hold onto the summary page your bank sends at the end of each tax year detailing interest and tax paid anyway. On the plus side, you may WANT to fill in a tax return, as you now get extra tax relief on gift aid donations and contributions to personal pensions, so keep a record of donations and pension contributions (although if your pension contributions are just deducted from your pre-tax earnings there's no change). [Disclaimer - i'm no tax advisor, just telling you what I believe to be true] Link to comment Share on other sites More sharing options...
scottbeard Posted March 22, 2012 Share Posted March 22, 2012 Um.... that doesn't sound good would rather be proactive! Could I pay more money into a pension to avoid paying the extra tax and having the hastle of filling in a tax return? Yes - but best to do it into your work scheme where contributions can be deducted from pre-tax income. If you pay into a personal pension, you'll have to claim relief via self assessment. Link to comment Share on other sites More sharing options...
scottbeard Posted March 22, 2012 Share Posted March 22, 2012 Don't worry. They always find you. Not necessarily. But you're in trouble if you've amassed a big bill and then they do. Ask Rangers FC. Link to comment Share on other sites More sharing options...
AteMoose Posted March 22, 2012 Author Share Posted March 22, 2012 ok so Im worrying about nothing thats good news carry on as normal for now, and increase pension contributions. Link to comment Share on other sites More sharing options...
schmunk Posted March 23, 2012 Share Posted March 23, 2012 You don't need to do anything. Your bank tells HMRC about your bank interest and your PAYE coding will be amended to collect any tax you owe from your bank interest. You do not need to file tax returns (unless you have another reason for doing so). If you are making Gift Aid payments and want to claim tax relief, you can call HMRC and ask for them to be coded into your PAYE coding. HMRC may ask you to file tax returns if you do this. (I am a tax advisor). Link to comment Share on other sites More sharing options...
longtomsilver Posted March 23, 2012 Share Posted March 23, 2012 So... this next tax year I become a Higher rate tax payer via PAYE! Um is there anything I need to prepare for? If so do I need to fill in a tax return form and if so what records do I need to keep to fill out my first tax return form? My OH is in the higher rate bracket and has been for quite some time. Also via PAYE not yet been asked to fill in a tax return yet. She has just upped her pension contribution from 3% of gross salary to 6% to start from April 1st and the company adds a further 9%. Regardless of being a higher rate tax payer she'd be silly not to. Still a fair amount above the threshold we are planning to chuck another xx,xxx into a SIPP to get us under the threshold so we don't lose our child benefit. Link to comment Share on other sites More sharing options...
bearwithasorehead Posted March 23, 2012 Share Posted March 23, 2012 This happened to me this year too. Anyone know about share dividends outside an ISA. Do I need to fill out a return to declare this? Link to comment Share on other sites More sharing options...
spord Posted March 24, 2012 Share Posted March 24, 2012 I was under the inpression that anyone earning over the higher rate threshold had to do a self assessment return. I do, but then I run a partnership as well as being employed full time, so that's probably why. Link to comment Share on other sites More sharing options...
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