How to get SA Registration Accepted

How to get SA Registration Accepted

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My client tried to register for SA online. She has retired from full time employment and will be in receipt of part time earnings and a substantial pension. There is the possibility that some of her part time earnings will be freelance/self-employed, but that is in the future. Her registration has been rejected on the grounds that she has not met the criteria. How do the Revenue know? Her pension may take her close to the higher rate threshold by itself, and then there may be inadequate taxation at source of her part time earnings. Should I strive to get them to see sense, and if so how? Should I advise my client to do nothing and merely check if she is likely to be due a repayment? Any advice or suggestions would be welcome.

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By pawncob
05th Mar 2014 11:45

Insist

People don't normally volunteer for S.A. so why would HMRC  not accept her?

If she's S/E they MUST give her a UTR.

http://www.hmrc.gov.uk/sa/need-tax-return.htm 

 

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Stepurhan
By stepurhan
05th Mar 2014 11:46

See sense on what?

Her pension will be dealt with under PAYE. Assuming correct operation of PAYE, the right amount of tax will be taken. Unless her pension income hits £100,000 then this should not trigger the need for a return. If it does, then RTI reporting should alert HMRC anyway.

Similarly why would her part-time earnings be undertaxed? Until such time as she undertakes this on a self-employed basis (you said this has not happened yet) then it will also presumably be taxed under PAYE.

So, on the basis of the information you have provided, there is currently no reason for a tax return to be submitted. Only when her income exceeds £100,000 or she starts to operate as self-employed will that change. Why do you think otherwise?

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Replying to neanderthal:
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By SilaWilts
05th Mar 2014 11:59

 Experience. The pension will

 Experience. The pension will probably be taxed correctly. The part time earnings from short term academic projects will almost certainly not be. I have no faith that RTI will work well enough to ensure that PAYE gives the correct result and while it is always possible to claim a refund in the event of overpayment, underpayment may well be as likely.

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By Phil Rees
05th Mar 2014 11:57

I have a case

Aged widow with small pension lives off dividends and gilt interest.

Always gets a repayment of the tax on gilt interest.

We have to submit an R40 annually.

Sensible thing would be to put her into self assessment so that the R40 details can be submitted electronically instead of on paper.

This would save time and effort for all concerned.

HMRC won't do it.

Frustrating.

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By CJaneH
05th Mar 2014 18:00

I registered a client  with

I registered a client  with State pension and investment income for SA who I expect to be refunds by stating that tax might be due for payment under SA. However as there is some rental income it could happen. UTR issued with no problems.

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By Jekyll and Hyde
05th Mar 2014 19:34

why would you want her registered?
Most tax software has R40 templates and its easy to then post them to HMRC. Why would you want a situation where the client has a legal requirement to file and hence possibly one year incurr late filing penalties.

If you are cautious about your clients annual tax position you could possinly charge her a reduced rate to calculate her tax liabilities and if all correct not submit anything.

However, if you wish to have her registered for self assessment the angle I would consider is looking at higher rate tax on her savings income. I suspect, with such a substantial pension (close to hrt and part time earnings) she will possibly have savings and these may need to be taxed at higher rate. They may not.

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