Basic tax return questions from financially naive pensioner!

[martinlest]

Well, perhaps not 'naive' exactly, more inexperienced: I spent much of my working life abroad and have never had to file a tax return in the UK in my life (I was always PAYE when I did work here).

The question is this: for the year 2024-2025 my total income will have exceeded the allowable threshhold, (though not by much). Seems I will have to submit an online tax return (or risk a fine?). Must I declare all my income, including any where tax has already been taken off before I received payment, and from any non-taxable income? Examples would be my state pension, (small) pensions from the Civil Service and Hampshire Council, and also a monthly pension I get paid into my UK bank from France. Then any winnings from Premium Bonds, interest on bank savings accounts... etc.

I am assuming that whether tax has already been deducted, or whether income is non-taxable (Premium Bonds) is irrelevant? If my total income, from all sources, exceeds the threshhold, then I will be taxed on the 'excess', and I therefore decalre all my income, taxable or not?

Or is that not so? Or do I not declare income where the tax has already been taken off, or are non-taxable? Seems a bit of a daft question when I thin k about it, but I am still unsure!

Slightly daunting to be doing this for the first time at this stage in my life, so if anyone could clarify this for me, that's be great.

Thank you.

Martin

[bd6759]

You won’t be able to calculate your tax liability if you don’t include all of your income.

Your obligation to notify HMRC only applies if you have a tax liability that exceeds the tax deducted at source. That is to say, you have more tax to pay.

Premium bond winnings are exempt, are not income, and don’t need including.

[martinlest]

Thanks for the reply, but I am still not 100% clear. Sorry.

In essence, am I right or wrong in thinking that, whether income has already been taxed before I receive it or not is basically irrelevant: if my total net income for the year exceeds the tax threshhold, I need to make a declaration.

Or, do I not mention any income that has already been taxed / non-taxable income (winnings from Premium Bonds for example) at all, even though those sources of income contribute to the fact that my annual income was more than the threshhold.

I believe that, in any case, I do need to make a tax declaration, as I receive a small pension from France, which of course is not taxed at source. It's just that I am not sure if I need to list every single item of incopme, or not (as above).

Thank you.

[martinlest]

Or, do I simply not include any non-taxable or pre-taxed income on the return?

[D&C]

You include taxable income irrespective of whether some tax been paid on it or not. If tax has been deducted you include the tax on the return as well so you get credit for it.

You don't include Premium Bond winnings as they are tax exempt. Likewise don't include interest from Cash ISA's as that is tax exempt.

You are overthinking this a bit really.

[bd6759]

Add up all your taxable income. That includes income from which tax has been deducted (because quite clearly it is taxable).

Do not include things that are not taxable, such as premium bonds and ISA.

Work out the tax due on your income, then deduct the tax that was paid at source (PAYE). The difference is either payable by you or repayable to you.

If we are talking small amounts of tax due, just write to HMRC with your calculation. You might not need to do a tax return.

[martinlest]

Ok, got the most recent repliews. Thank you