>>>>>>>Our tax is payed via PAYE (Pay as you earn). Your salary is known, then the tax-free part is put aside, then the tax on the remainder is split into 12 equal parts, and that is deducted each month. No filing - that's just for self-employed people.
>>>>>>>
>>>>>>Do you mean that salaried folks don't file tax returns? What are they doing if they have external income (banking interest, capital gains etc.)?
>>>>>
>>>>>D'you know? I've never thought of that. When I was self-employed, I had to declare all that. Ah, I think that dividends from investments, and all that, have tax deducted at source, i.e. if your bank gives you interest for a savings acc, then Uncle Sam's already had his cut - you get it net.
>>>>>
>>>>Uncle Sam doesn't do it for sure. Also, if tax rate is progressive then how banks/brokerages may know how much to withhold?
>>
>>Then they'll have kept abreast of the fluctuating rates, I expect, and include it all in.
>>
>>>
>>>I think Terrys wrong there. If you tax affairs are at all complicated the Inladn Revenue will ask you to complete a return. If you are PAYE(Pay as You Earn) but neglect to mention whats called unearned income(stocks sale of goods capital gains etc) then you might get investigated.
>>
>>Well I have unearned income, and I needed to declare it when I was self-emp. But the org's send you a certificate of tax deducted (or taxable income - that's when you may need to declare) for the fiscal year "good" for tax return purposes, that the accountant would check was OK before filing. Now, since the IR released me from having to file any more, they didn't include a caveat "but you must file for those investments anyway".
>>
>>In short - I just don't know, but I'm at least 60% correct here.
>>
>>>
>>>Nick
>
>Did they actually send you something saying you don't have to file any more ?

When I started working for "the Man" I hadn't actually dissolved my company (in case I should change my mind). SO at the end of the year I still had to do a director's tax return. After this (I got a £1,000 rebate BTW - so time well spent - and I did it myself rather than pay the parasites to do it), I phoned up the IR and a nice man told me I didn't have to do it anymore. Either at my request, or automatically, they then sent me a letter to say so). Besides, there's millions of employed people, paying via PAYE, with modest investments, who don't have to file - why should I have been any different?

>
>Any tax inspectors on the site TERRY HAS UNDECLARED INCOME :-)

I'll GET you, Mason!

>
>If you had to pay higher rate tax the certificates wouldn't be correct.

Am I bothered?

- Whoever said that women are the weaker sex never tried to wrest the bedclothes off one in the middle of the night
- Worry is the interest you pay, in advance, for a loan that you may never need to take out.