HMRC have sent me a tax return for April 2010 to April 2011.

Question

HMRC have sent me a tax return for April 2010 to April 2011. Do I need to get
professional advice to complete following my previous question?

berduchwal · Accepted Answer

berduchwal :

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No I do not think so. I suggest you register for online filling and try until
you can see offsetting done when you get to the tax calculation stage.

berduchwal :

There is a section on the return which asks you if you would like to offset one
loss against other income and you need to say yes and offset all of the loss.

Customer:

On the assessment form it says you last salary from P45 or P60. I did not
receive a P60 as wasn't employed and my P45 from Jan 2011 doesn't show
redundancy. Where do you add redundancy payments information? I'm assuming I
need to add for this tax year 2010/2011 even though I was paid 3 months notice
in lieu which meant that I got redundancy in jan 2011 instead of April 2011
which would have been following tax year. Can i argue the case that redundancy
was for year 2011/2012 as I received salary up to end of March 2011.

berduchwal :

What proof do you have to evidence redundancy payment? Was any tax deducted of
redundancy payment?

You can not argue that it was for 2011/12 your employment was terminated in
December 2010 and this ends the matter.

Customer:

The HMRC have my PAYE as £184464 for that tax year which includes my redundancy
payment and tax paid as £46482. Looks like i paid tax at basic rate on
redundancy. Redundancy was £98958 minus 30K tax free. Paid tax on this of
£13791. My issue is that I had 3 months notice which RBS paid in lieu. If they
hadn't my redundancy would have been paid in April which meant the next tax year
where I've not earned anything but my assumption is now i'm going to get
hammered on tax as this payment being made in same tax year where i was paid up
til march 2011 will place me in 50% bracket.

Customer:

sorry not earned anything

Customer:

ignore last sentence thought i had incorrectly mentioned in previous text

Customer:

the redundancy was for me to survive the next year until i found work but and
getting taxed in previous year

Customer:

i don't have any monies left as needed to survive this period. i tried futures
trading (self employed) from march 2011 until sept 2011 but unsuccessful and so
left with a loss of £16000. This I can assume was a professional career change
as I paid desk fees at offices in Moorgate at a cost of £2500 per month and was
not trading equity shares via a bank brokerage or spread betting.

berduchwal :

I understand but your personal circumstance change nothing in how tax is
calculated and paid. Income was in 2010-11 so in this tax year any tax due needs
to be paid.

Customer:

it seems so unfair that i get almost nothing from benefits to help my family
over this period when the redundancy was used up and then they want to sting me
for more tax when others in this country pay nothing !!! Can i claim back the
16000 loss against tax?

berduchwal :

You can claim proportion of the loss applicable to 2010-11 tax year.

Customer:

for tax year 2011/2012 I haven't earned anything unless i start a job in the
next week or so. If i do a self assessment in January do i get anything back for
losses made?

berduchwal :

Not for 2011-12 but what you can do is:
1) wait with 2010-11 tax return till the end of current tax year (this is
assuming your submission deadline allows this)
2) submit your 2011-12 tax return in April will loss claim from self employed
and mark for the loss to be carried backwards
3) submit your 2010-11 tax year with losses for both 2011-12 and 2010-11 claimed
against your 2010-11 income

Customer:

so are you saying that i wait until after april 2012 to return my 2010-2011
assessment (which i can as have 3 months from 23 feb to return), then also fill
out my 2011-2012 self assessment in may 2012 and claim all losses against
2010-2011?

berduchwal :

Yes.

Customer:

best to do online?

berduchwal :

yes

Customer:

great thanks - will the loss be against tax or earning previous year. e.g. if i
made a loss of 16000 is that written off the earning for previous year and then
tax calculated?

berduchwal :

Yes

berduchwal :

It is against earnings NOT tax.

Customer:

can you also claim the tax allowance for 2011-2012

berduchwal :

Tax is calculation after losses have been deducted.

berduchwal :

No tax allowances can not be claimed in 2010-11.

berduchwal :

Sorry it should say: No tax allowances for 2011-12 can not be claimed in
2010-11.

Customer:

ok so if i start a job next week, how do i claim the tax allowance for 2011-2012

berduchwal :

You will have tax allowances in 2011-12 as normal. You can not however transfer
them if you have not used them.

Customer:

so if i earn £3000 from 19th march to 4 april 2012 - do i just not pay any tax
in that pay packet?

Customer:

as i will get whole year tax allowance

berduchwal :

Yes

Customer:

in one month

berduchwal :

Yes

berduchwal :

It is annual allowance even if you only have one month to use it.

Customer:

if those 2 weeks are paid end of april because of payroll process to set me up,
I will still get that tax allowance paid?

Customer:

as salary was for previous tax year

berduchwal :

Only if on their payroll it is considered to be 2011-12 tax year. It will depend
on their payroll.

Customer:

ok thanks

berduchwal :

glad I could help

HMRC have sent me a tax return for April 2010 to April 2011.

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