You might be wondering if our experts have any advice for you, if you are a high earner. You’ve seen the helpful guides for construction workers, landlords, teachers and overseas workers, but you’re maybe not sure if we can offer any help to you? Luckily, our tax experts at DSR Tax Claims want to make life easier for everyone – and that includes you too – so we have created this handy guide to self-assessment for high earners. You might also want to check out our handy online calculator to see if you are entitled to a tax rebate on previously unclaimed tax relief – and if you are, call our friendly team on 0330 122 9972 and let’s get that started for you.
What are the self-assessment regulations for high earners?
If you earn more than £100,000 per year then you have to file a self-assessment tax return to HMRC, whether or not any other special circumstances apply to you. You need to make sure that you have registered for self-assessment with HMRC by the 5th of October following the tax year when your income first exceeded that £100,000 threshold. Make sure that you do register or you could end up with a penalty from HMRC.
What about if you are a PAYE employee?
If your income is greater than £100,000 then it makes no difference to HMRC whether you are PAYE or self-employed, you will still need to file a tax return through the self-assessment system. In part, this is because HMRC will want to take a closer look at your income details if you are a high earner, but it is also due to the fact that your finances are just naturally likely to be a bit more complex if you are a high earner. Maybe you have more than one source of income, due to shares or other investments, and HMRC will want to see that you have accounted for it all correctly.
You can also find that your personal allowance is affected if you earn more than £100,000 a year, because HMRC look at what they call your “adjusted net income”, which can have an effect on areas where you can claim tax relief.
If you are a PAYE employee, you might worry that this means you will end up paying twice as much tax but you don’t need to worry – just because you file a self-assessment tax return doesn’t mean that you will end up paying tax twice on your earnings. However, it is always worth getting the experts involved if you are a high earner – our tax specialists can make sure that you are claiming your maximum tax relief, so that you are not liable to pay even more in tax than you already do. Call our expert team on 0330 122 9972 and let us set to work getting you your maximum tax relief.
What information will you need?
Because HMRC are going to want to take a detailed look at your finances, you are going to need to hang on to any information relating to all of the sources of your income – such as savings, pensions, investments, rental properties, shares and share dividends and so on. You will also need to inform HMRC if you get any benefits in kind from your employer, as well as any allowable expenses you want to claim tax relief on.
Because it can get really complex when you are dealing with a tax return for a high earner, our tax preparation specialists at DSR Tax Claims are at hand to help you with your self-assessment tax return so you can be sure that you are only paying what you owe and not a penny more. Call our professional team on 0330 122 9972 – we’re the tax experts you can trust.