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22nd August 2010 Don't fall for the "No Tax Return Needed" Letter. Don't fall for the 'No Tax Return Needed' Letter! Time and time again, I see people loosing out on tax that should be refunded to them, due to a major misunderstanding, created by HMRC. (please note that this might apply to you even if you have never completed a tax return) The PAYE tax payer receives a letter from HMRC stating that they no longer need to complete a tax return. 'Hooray' they shout and promptly dance around the house, thrilled that HMRC have washed their hands of them, however, one thing they have failed to notice is that for the last two years, when they have completed their tax return, they have been due a nice little refund. So, this begs the question, why would HMRC write this letter? That is not for me to say, but I wonder if it has anything to do with the fact that there is no tax due? So, what can be done about this? Well firstly, the people it affects are usually but not exclusively: 1)Higher rate tax payers with pension contributions, expenses or gift aid donations; 2)Basic rate tax payers with expenses. To reclaim your tax, you can either complete a tax return each year or complete form P87. Please note that form P87 is really aimed at the basic rate taxpayers with expenses. If you are a higher rate taxpayer and HMRC often send a tax review form P810, then you still might be overpaying tax. This is because they don't send this form every year and the years in between, they often make assumptions about your expenses etc. These are therefore not necessarily correct. It is essential that you check your PAYE coding notices and, check what tax you have paid at the end of the tax year. Don't forget if you think you have been paying too much tax, you can go back 6 years and make a claim! The deadline for claiming for 2004/05 is 31 January 2011 CCF are happy to carry out FREE tax reviews to ensure you are not paying too much tax under PAYE. If a tax reclaim is required, we will prepare this for £75 + VAT per claim. |
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Are you a buy to let property owner? Budget summary for small businesses Don't fall for the 'No Tax Return Needed' Letter! |
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