You don't need to be an 'investor' to invest in Singletrack: 6 days left: 95% of target - Find out more
I’ve been PAYE ever since I started working. A few years ago I ‘qualified’ for the situation where if you earned over so much and claimed child benefit you had complete a self assessment to pay some of it back. During that time I was also given some shares through work which have only paid a dividend a couple of times. The first time was during the child benefit period so I was completing an SA anyway. My kids have since grown up and I argued successfully that I didn’t need to complete an SA any more.
Fast forward until last week when I got a message on the HMRC app that my self assessment was late and I was due a penalty. Right enough I’d missed a message advising I’d been put on to self assessment again. I’d received a dividend in late ‘22 which perhaps triggered an SA, it had been that long ago that I’d forgotten about it. I’ve done the online checker and as the dividend is over £2k but under £10k it states I shouldn’t have to do an SA.
I don’t dispute I have some tax to pay but I have absolutely no desire to complete an SA when it appears I should be able to just pay the amount owed.
I understand they’re extremely busy but having spent an hour on hold to HMRC yesterday with no answer my question is should I just bite the bullet, complete the SA and argue that I don’t need to complete an SA at my leisure or is it worth persisting on the phone to sort it out that way?
The dividend might not mandate the SA but if they ask for one I think you have to do it regardless.
Probably easier to just do it than try to get some service anyway!
Faster to fill out a self assessment than to speak to HMRC. Not ideal but lesser of two evils.
The dividend allowance for 2022/23 was £1k so you will have a tax liability for anything in excess of that.
As above ^^^ the simplest option is to submit a self-assessment quickly to avoid further penalties, pay what's been levied to date, pay any tax due, put shares into an ISA to eliminate any future liability.
When you've done that, talk with HMRC about getting taken out of SA.
Despite recent assurances from HMRC that I ‘no longer need to compete SA’ I do it every year. It avoids unpleasant late surprises of ‘you may have underpaid’ and occasionally results in refunds.
started years ago when I used to get shares as part of bonuses and then subsequent dividends. Should have started sooner as it avoids under and overpayment.
Just do the submission if they ask or you will get a penalty. I thought company shares got the same treatment as an isa, mine did, they certainly were isa d up by default when the scheme matured.