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Should I be in Self Assessment?

Should I be in Self Assessment?

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The notice to complete a tax return is accompanied by a form SAF2 with the above heading. It sets out criteria which, if satisfied, gives a sporting chance of being removed from self assessment altogether. I've successfully had a couple of clients removed so far this year saving them the cost of my preparing a tax return.

What the form doesn't mention is that, once one has successfully met all the criteria, there is a bonus question - "Do you have taxable income in excess of £24,000?". I have one client in that category and even though he is a standard rate taxpayer (and won't ever conceivably be anything else) will be required to complete a tax return every year until he dies. He has two main sources of income - a state pension and an occupational pension.

Does anybody have a tip as to how I can beat the system and prevent the completion of possibly around 20 tax returns all showing a NIL liability?

Tom Egerton

Replies (3)

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By Cloudcounter
02nd Jul 2012 12:24

Is he

aged over 65 with income in the bracket between £25k (£24k last year) and about £29,790 (£24k last year) meaning that his age allowance is eroded due to the level of income?

In that case I've been told that one of my clients must stay in self assessment.

Of course if the granny tax goes through (or did I miss a U-turn) then that will disappear and he can come out.

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By justsotax
02nd Jul 2012 12:38 on....

but what you did miss was GO saying that as a result of the granny tax many 1,000s of pensioners will indeed come out of SA thus saving several £100 each, thus off setting the small benefit they currently gain for the APA.....every cloud.....

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By Roland195
02nd Jul 2012 14:21

Can never understand HMRC

Given how overworked and understaffed HMRC claims to be (can anyone hear violins?) they seem to go out of their way to make work for themselves by requiring self assement returns from people who may not even be tax payers.

Director of a company? - Tax Return (although not based in statute)

Marginal Age Related Allowance? - Tax Return

Foriegn Income? - Tax Return (OTT for £5 from Santander)


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