Was I supposed to submit that tax return... or was I mad?

O

oinseach

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I'm a PAYE victim like many another, working for a multinational which besides generously employing me, runs two share purchase schemes; I participate in both in the hope of rolling in piles of gold later in my life. When the end of October drew nigh, I downloaded form 11E from the Revenue website and filled in all sorts of details about Benefit in Kind and whatnot and mentioned to some co-workers that I had done so, in the usual way that you inflict the saga of the trials of your life upon fellow-sufferers. I found that I appeared to be the only person who had thought of submitting a tax return at all and that most of those to whom I spoke were sure PAYE workers never had to submit returns, BIK or not - admittedly, the return form is supposed to be for the self-employed, but I saw nothing else which was suitable.

While the Revenue were clearly happy enough with my submission to demand an additional sum equivalent to two weeks' wages from me as tax underpaid, I am in need of reassurance from AAM. Did I screw up somewhere? Have I overdeclared? Was I supposed to submit a return at all? Logic suggests that I did right, but the overwhelming doubt (alright, laughter) I encountered has undermined me. What are the community's views?
 
Re: Was I supposed to submit that tax return... or was I mad

I am in need of reassurance from AAM. Did I screw up somewhere? Have I overdeclared?

You haven't provided any figures so it's impossible to know.

Was I supposed to submit a return at all?

Yes.

Logic suggests that I did right, but the overwhelming doubt (alright, laughter) I encountered has undermined me. What are the community's views?

Failure to declare income (including BIK) implies tax evasion. I suspect that your non-filing colleagues will get a surprise sooner or later.
 
Re: Was I supposed to submit that tax return... or was I mad

You dun right.

The problem with the implementation of these schemes is that most people don't bother declaring the benefit accruing and just assume the Revenue will never think of having a bit of a poke around to see why out of a multinational with over 1,000 (or whatever) employees only 17 seem to participate in the share scheme.

At some point someone will get hit with a huge interest and penalty bill. I know of someone in one of these schemes who has declared his shares all along, and who has a colleague who having done the sums now reckons he is due a high 5-figure penalty and for that reason is scared to liquidate the shares even though he needs the money . . .

z
 
Re: Was I supposed to submit that tax return... or was I mad

The problem with the implementation of these schemes is that most people don't bother declaring the benefit accruing and just assume the Revenue will never think of having a bit of a poke around to see why out of a multinational with over 1,000 (or whatever) employees only 17 seem to participate in the share scheme.

I was a member of a US owned company's (non Revenue approved as far as I know) [broken link removed]/[broken link removed] scheme a while back and the company was obliged to notify Revenue of dealings conducted under this scheme much to the surprise of those who didn't unilaterally declare their income tax and CGT liabilities under the scheme. Basically Revenue came calling to these people and they were obliged to settle their liabilities. In most cases they simply collected income tax due through an adjustment to the individuals' tax credits over a few years in most cases. In some cases they demanded immediate payment in full. As far as I recall Revenue didn't let it get as far as interest and penalties being due. However for an individual to do so is to run a significant risk.
 
Re: Was I supposed to submit that tax return... or was I mad

Thanks, all. I knew that I must logically be correct, but was doubting myself after weathering the scorn of the non-filers - daft, eh what? The tales of the possible consequences of not declaring this BIK have given me a lovely self-righteous feeling now!!!
 
Re: Was I supposed to submit that tax return... or was I mad

Another nail in the coffin of the theory that "Paye victims" are somehow too saintly and conscientious to involve themselves in tax evasion, not like that dirty self-employed shower... :(
 
Re: Was I supposed to submit that tax return... or was I mad

great and true post Tommy
 
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