Higher Rate Taxpayer

Not all higher rate taxpayers are required to complete a Tax Return.

However if you are required to do so Tax Advantage can do this for you.

Tax Advantage Fees:

The fees for this service start from £70*

*Fee will be dependent on any other income you may have for example income from property, in which case a small additional charge will be made.

If you are a higher rate taxpayer then you may need to complete a Tax Return. For those who only have pay and little in the way of benefits then you would only need to complete a Tax Return if your earnings are £100,000 per year or more.

There are many higher rate taxpayers who earn much less than £100,000 a year but may have savings and other investment income, most savings income has basic rate tax deducted at source, however, you will need to pay additional tax on your savings and investment income as it will be liable to tax at the higher rate.

HM Revenue & Customs have a couple of ways of dealing with the additional tax that needs to be collected, if you have only a relatively small amount of investment income they may just ask you to complete a form P810 all this does is allow HM Revenue & Customs to see how much income you have, they then restrict the amount of personal allowances in your tax code. The restriction in your tax code will mean you pay more tax from your pay, this additional tax will hopefully cover the additional higher rate tax on your savings income.

The easiest way for HM Revenue & Customs to collect additional tax from you is via Self Assessment. You may not realise this but it is up to you to recognise the point at which you should be completing a Tax Return and advising HM Revenue & Customs accordingly. If you fail to notify them that your circumstances are such that you need to complete Tax Returns then you could face a £100 penalty.

At Tax Advantage we will be happy to review your circumstances for free and if it turns out you should be completing Tax Returns we can do this for you, for an agreed fixed fee. Simply complete the contact form and one of our friendly team will get in touch with you.