Self Assessment required for my wife?

[Jeremiah@RHJAccountants]

Thought I'd better check if my wife needs to fill in a self assessment this year

She has a low paid job (park time) and is a shareholder in my company (not director) ..

job is <£10k, dividends is <£15k

As I understand it, this is well below any threshold... but does any know if she will need to complete a form (mandatory)??

You have income from savings, investment or property
If you are an employee or a pensioner and already pay tax through a PAYE code, you can sometimes ask for tax that you owe on income, such as savings and property, to be collected through your code number. You'll need to complete a tax return instead if the income you receive is:

•£10,000 or more from taxed savings and investments
•£2,500 or more from untaxed savings and investments
•£10,000 or more from property (before deducting allowable expenses)
•£2,500 or more from property (after deducting allowable expenses)
If you don't pay tax through a PAYE code you’ll need to complete a tax return if all of the following apply:

•you have income to declare, for example income from savings, trusts or abroad, rental income from land or property
•your total income exceeds your total allowances and reliefs
•you have tax to pay on this income


Your wife has dividend income which is investment income of £15k which is more than the £10K limit as mentioned above so she will need to file a self assessment.

I would reccommend registering online with HMRC if you are going to file the self assessment yourself.

Although as an accountant i think the HMRC online system is not very easy to understand for non accountants and could lead you to making some mistakes.

Most accountants don't like the HMRC online system either!!

You can always speak to an accountant and see if they can file this for you if you don't have an accountant already?

Remember the deadline for 2011-2012 is 31 Jan 2013.

[Nathan SJD Accountancy]

I agree with Jeremiah.

However, with regards to the January 2013 deadline. If your wife registers now with HMRC, it is likely that the 31 January 2013 will not apply.

HMRC usually give you 3 months from when they request you to do a tax return. e.g. you tell them now before 23 December 2012, they will want the tax return 3 months from that date.

Double check with them though, but that is what I have always experienced when you register close to the filing deadline.

http://www.hmrc.gov.uk/sa/deadline-news.htm#2

The above link verifies the 3 month 'extension' jumbojake in case you need to refer to it.

[Tricky75]

Nathan

I use SJD and asked a similar question of them earlier this year. The response was that my wife only has to fill in a self assessment form if her gross income was above £42,475

So, who's correct?!

[Chugnut]

Nathan

I use SJD and asked a similar question of them earlier this year. The response was that my wife only has to fill in a self assessment form if her gross income was above £42,475

So, who's correct?!

WHS

[Lockhouse]

AIUI any divvis over 10k for the missus and a tax return is mandatory. (10K on taxed investments).

[psychocandy]

I agree with Jeremiah.

However, with regards to the January 2013 deadline. If your wife registers now with HMRC, it is likely that the 31 January 2013 will not apply.

HMRC usually give you 3 months from when they request you to do a tax return. e.g. you tell them now before 23 December 2012, they will want the tax return 3 months from that date.

Double check with them though, but that is what I have always experienced when you register close to the filing deadline.

HM Revenue & Customs: Sending your Self Assessment tax return

The above link verifies the 3 month 'extension' jumbojake in case you need to refer to it.

My Mrs is in similar situation. Up until April 2011, we both ran a partnership and did partnership and individual tax returns for that year. Partnership was dissolved in april 2011 and reverted to sole trader with just her.

I spoke to HMRC recently and they confirmed that yes they knew partnership was dissolved and didnt need tax return for 2012 for that. Cool.

BUT, I've had notice of tax return for 2012 but Mrs hasnt. During 2012, she had dividends plus sole trader income.

Been meaning to get her to phone them to sort it out but I assumed they;d just say, yeh, gotta get in by 31st 2013 my son.

Are you saying if she phones them now they'll say yeh ok please do one but you've got 3 months to do it now?

[Nathan SJD Accountancy]

Nathan

I use SJD and asked a similar question of them earlier this year. The response was that my wife only has to fill in a self assessment form if her gross income was above £42,475

So, who's correct?!

Hi Tricky,

It isn't a question that has a definite answer unfortunately. It really would depend on your wifes particular circumstances. e.g. if your wife earns £43,000 a year or £20,000 , all PAYE, then 'no' I wouldn't expect her to have to do a self assessment tax return.

The below link that NLUK put in earlier states the circumstances when a self assessment may be required.

HM Revenue & Customs: Do you need to complete a tax return?

[Nathan SJD Accountancy]

Nathan

I use SJD and asked a similar question of them earlier this year. The response was that my wife only has to fill in a self assessment form if her gross income was above £42,475

So, who's correct?!

If you PM your wifes circumstances, I am more than happy to clarify my stance on whether a return may be required.

[Nathan SJD Accountancy]

WHS

You too Chugnut, just drop me a PM with the details.

[Nathan SJD Accountancy]

My Mrs is in similar situation. Up until April 2011, we both ran a partnership and did partnership and individual tax returns for that year. Partnership was dissolved in april 2011 and reverted to sole trader with just her.

I spoke to HMRC recently and they confirmed that yes they knew partnership was dissolved and didnt need tax return for 2012 for that. Cool.

BUT, I've had notice of tax return for 2012 but Mrs hasnt. During 2012, she had dividends plus sole trader income.

Been meaning to get her to phone them to sort it out but I assumed they;d just say, yeh, gotta get in by 31st 2013 my son.

Are you saying if she phones them now they'll say yeh ok please do one but you've got 3 months to do it now?

Hi,

Yep, that is what I would expect, but they wouldn't confirm it verbally, they would issue the request in writing, but only if they did not issue a letter before 31 October 2012 asking your partner to do one.

Are you sure they didn't send a letter or any other correspondence though? HMRC rarely miss issuing them out. If anything, they are too quick to send them out.

HM Revenue & Customs: Sending your Self Assessment tax return

Actually, if your partner already has a UTR number, you have all the details you need to submit it before the 31 Jan deadline.