Why do I need to make a tax return when my only income is from Building society savings?
Why do the society take the tax anyway when I am not due to pay tax.
Answers:
Because the tax man has got a hook into you. They never let go.
You need to fill in an R85.
http://www.hmrc.gov.uk/forms/r85.pdf#sea.
Just talk to your local tax office.belive it or not they can be quite helpful!!
The tax return could be quiet helpful as i guess the IR owe you money. You can arrange for the building society not to take tax from your income by signing a form Rsomething or other.
I agree with Phil.
If you have paid Tax on your interest then the tax return will help you claim it back. (assuming you havent registered for Gross Interest already)
Because the law requires that they tax you.
And you make out your income tax forms, so that you can recoup that tax.
If your circumstances changed, and you were suddenly making more money, you would not be able to get back that tax.
The government will always make sure it gets THEIR share. You are secondary.
All income is added on to your earnings and assessed for tax.
Your allowance is deducted and the remainder taxed at varying rates.
If you have no earnings your B.S. interest is taxed if you are still over your allowance.
If you are below the tax Allowance you ask the B.S. for a form and after that is processed all your interest is tax free.
Do it now and you can claim back for the tax year 2005-6.
Ask the taxmen, who really are helpful, if you can go back further.
I guess you are saying tax as in income tax and not loco and state tax like property tax.
OK here is how it works. You live in a country, it doesn't matter which one. And a Tax is impost on to you to set up defense of that country, road, water treatment, and so on so forth. So that when you are living in that country you are using those serves. You pay taxes are when you get a job or buy goods and serves.
Tax is taken out when you get a paycheck, it is call withholding. If you chose not to withhold then you did not pay any taxes and you are using these services for free when every one else is pay their share.
A tax return is their figure out how much you as an individual in that country should pay base on your income. A return is there to tell you how much you pay (w2) vs. how much you owed. If you don't want to find out by doing a tax return then the government will find out for you. It is call an audit.
But Let say you have no taxable income. You should do a tax return because
1) Let the federal and state know what you income is cause they don't know you owed tax or not and they want you to have a chance to speak for you self.
2) You may have federal and state credit if you income is too low. Some credit are treated like money so if you have let say Earn Income Credit (EIC) or Property Tax Relief you may have money coming back to you. EIC may pay up to $4000.00
And if you don't know how to do a return most federal and state agency has freed serves to help you as well as information on free serves.
Joe King , I am disappointed with the above answers. I've been keeping a watch on your interesting question. I have often wondered about this also.
The above 'answerers' are answering the wrong question.
If someone gets sent a tax return they have to compleate this by law. If you fail to complete the return and do not submit it on time then you become liable to penalities.
You could possibly be recieving a return for many reasons. Probably due to the amount of interest you are recieving each year combined with some PAYE wages from previous tax year or even stocks/shares or inheritance tax you may have recieved
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Answers:
Because the tax man has got a hook into you. They never let go.
You need to fill in an R85.
http://www.hmrc.gov.uk/forms/r85.pdf#sea.
Just talk to your local tax office.belive it or not they can be quite helpful!!
The tax return could be quiet helpful as i guess the IR owe you money. You can arrange for the building society not to take tax from your income by signing a form Rsomething or other.
I agree with Phil.
If you have paid Tax on your interest then the tax return will help you claim it back. (assuming you havent registered for Gross Interest already)
Because the law requires that they tax you.
And you make out your income tax forms, so that you can recoup that tax.
If your circumstances changed, and you were suddenly making more money, you would not be able to get back that tax.
The government will always make sure it gets THEIR share. You are secondary.
All income is added on to your earnings and assessed for tax.
Your allowance is deducted and the remainder taxed at varying rates.
If you have no earnings your B.S. interest is taxed if you are still over your allowance.
If you are below the tax Allowance you ask the B.S. for a form and after that is processed all your interest is tax free.
Do it now and you can claim back for the tax year 2005-6.
Ask the taxmen, who really are helpful, if you can go back further.
I guess you are saying tax as in income tax and not loco and state tax like property tax.
OK here is how it works. You live in a country, it doesn't matter which one. And a Tax is impost on to you to set up defense of that country, road, water treatment, and so on so forth. So that when you are living in that country you are using those serves. You pay taxes are when you get a job or buy goods and serves.
Tax is taken out when you get a paycheck, it is call withholding. If you chose not to withhold then you did not pay any taxes and you are using these services for free when every one else is pay their share.
A tax return is their figure out how much you as an individual in that country should pay base on your income. A return is there to tell you how much you pay (w2) vs. how much you owed. If you don't want to find out by doing a tax return then the government will find out for you. It is call an audit.
But Let say you have no taxable income. You should do a tax return because
1) Let the federal and state know what you income is cause they don't know you owed tax or not and they want you to have a chance to speak for you self.
2) You may have federal and state credit if you income is too low. Some credit are treated like money so if you have let say Earn Income Credit (EIC) or Property Tax Relief you may have money coming back to you. EIC may pay up to $4000.00
And if you don't know how to do a return most federal and state agency has freed serves to help you as well as information on free serves.
Joe King , I am disappointed with the above answers. I've been keeping a watch on your interesting question. I have often wondered about this also.
The above 'answerers' are answering the wrong question.
If someone gets sent a tax return they have to compleate this by law. If you fail to complete the return and do not submit it on time then you become liable to penalities.
You could possibly be recieving a return for many reasons. Probably due to the amount of interest you are recieving each year combined with some PAYE wages from previous tax year or even stocks/shares or inheritance tax you may have recieved
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