Quantcast
Channel: MoneySavingExpert.com Forums - Cutting Tax
Viewing all 10212 articles
Browse latest View live
↧

Tax investigation stresses.

November 12, 2014, 9:17 am
$
0
0
Hello,

I'd love in the future tgo open my own business as a sole trader ( it seems the easiest to set up) I'd be opening a online shop as well as selling on eBay. However while I've been researching what needs to be done I have come across sites that mention tax investigations and how they are on the rise. With my business i m looking to have a profit of around 20k per year.

I've read they can go back as for as 20 years if they wish, some are done at random and even if your totally above board (which I of course would be) they'll keep digging until they find something.

I've always suffered with depression and the thought of a tax investigation is making me have second thoughts about starting a business. Does anyone have any advice? Just what are the chances of being investigated?
↧
Search

VAT on rental cost for company cars

November 12, 2014, 3:53 pm
$
0
0
Hi all, first post so please be gentle!

I have a (privately owned) car which is coming to the end of its working life, and I've been investigating my options re: convincing my boss to lease a car for me through the company I work for. I'm trying to crunch the figures to see the precise impact on my take home pay, but I'm struggling with one point:

I understand P11D values, CO2 emissions figures and their effect on the taxable benefit in kind, and block VAT for employers, what I DON'T understand is where the VAT on rental fits in for me as an employee.

I've been quoted two figures from the dealer concerned. These are the "Total Rental Cost" per month, and the rental cost plus "Irreclaimable VAT". Let's say, for simplicity's sake, these figures are £300 and £330.

OK, so the rental cost is £300. This is paid with VAT @ 20% (£360), but my employer then reclaims 50% (£30) of this, leaving an effective VAT rate of 10%.

So I sacrifice part of my salary to pay the leasing costs, but how much of my salary am I sacrificing? Does my employer reduce my gross monthly pay by £360, in line with the gross rental payment that they are making, or by £330 to reflect the net cost to them after reclaiming block VAT?

Sorry if this is a stupid question, thanks in advance for any advice you can give.

:)
↧
↧

Missed IHT allowance transfer claim period by 1 year, any hope?

November 13, 2014, 1:50 am
$
0
0
We didn't know that the spouse IHT allowance had to be claimed, and now are over the 24month period by a year.

Is there anything we can do now?

Probate has not been carried out.

Any advice appreciated?
↧

Confusion with tax

November 13, 2014, 3:14 am
$
0
0
Hello everyone,

I was wondering whether you could help... :)

I was made redundant from my job in September 2013, I then went on to do a full time Masters degree for 1 year.

After my degree, I sent off my P45 parts 2 and 3 to the tax man to claim a tax rebate for the period 2012-13.

I begun employment in November 2014 and my company asked for my P45, I gave them my part 1 as this was the only part I had left. Researching into this a little further, in hindsight, I realised I should not have passed this on?

A friend said that I should have been told to fill out a P46 as I have not worked for the tax year.

When I receive my paycheck, does it mean that I should not have any tax on my 1st paycheck? Not until I pass over the £10,000 threshold?

I hope this makes sense, and look forward to your comments :)

Cheers,
Jenna
↧

Marriage Tax

November 13, 2014, 4:00 am
$
0
0
Does anyone know what the marriage tax benefits are?

Will it make any odds on a monthly basis?
↧
↧

Avoiding income tax through charitable donations?

November 13, 2014, 5:29 am
$
0
0
Hi,

This is probably a strange question but I've heard people talk about the possibility of tax relief if you make charitable donations.

Assuming my total income for a year was £25k, and I donated £15k to charity and just kept the £10k for myself - would I be able to claim the tax back on my salary? Or have I somehow got it muddled up with gift aid or similar?

Thanks
↧

Can someone explain a Capital Gains Tax question to an idiot me Please?

November 13, 2014, 12:58 pm
$
0
0
Excuse my huge ignorance on this matter. I'm very confused about this. I have a couple of antique clocks which I am aware are exempt from capital gains tax.

What does this mean if I sell them? Are the profits completely tax free? Where does income tax come into it? Would I normally have to pay capital gains tax AND income tax if I sold a non-exempt item?

Cheers in advance for any replies.
↧

possible tax rebate

November 14, 2014, 3:24 am
$
0
0
Hi, wonder if anyone can help, its a bit complicated so will try and explain as best as i can.

situation

2 Jobs both part time, have been using my 100l tax code on job no1 and paying basic rate tax on job no2

have handed notice into job no1 and will transfer tax code to job no2 after last wage earned.

with both jobs i will not have earned £10,000 this year, so effectively i shouldnt have paid tax at all ... but i do understand with second job i pay basic rate tax

when it comes to claiming the tax rebate back which job should i claim it back for ? is it a case of the job where i paid the most tax ( which i think will be job no 2 ) even though this is the job where i paid basic rate tax for the majority of the year, if so will i claim back for the full year ?

sorry if thats confusing ... any questions or clarification please ask

can anyone help ?

thanks
↧
Search

Made no profit on self assessment

November 14, 2014, 8:33 am
$
0
0
2013-2014 was the first year I filled in a self assessment form after selling a few crafts, I also have a full time job.

I did a paper return, and filled in details from my P60 and put down that my craft expenses (all direct materials) outweighed my takings. I've just had a letter estimating that I'll owe £1.80 in tax. Why do you think this is?
↧
↧

HMRC annual tax summary

November 14, 2014, 12:13 pm
$
0
0
Has anyone received theirs yet?

Both myself and my partner have had ours, and we can't quite understand it. The front page has a bit which says 20% tax on £XXX = £ YYY. Then the line below says total income tax = £ ZZZ i.e. a different number. On mine, Z is lower than Y, but on my partner's, it's higher. Anyone got any ideas why it's different to Y?

Sorry I didn't want to give actual figures unless needed!
↧

Advice re ducking under the higher rate threshold please

November 15, 2014, 7:25 am
$
0
0
Hi there

Up until July I was a basic rate tax payer and to be honest had never really thought much about tax as it was all just automatic and seemingly out of my control.
Since July my basic salary has gone up to £42746 (tax code 1000L) - now I believe that anything over £41865 is going to be taxed at 40%, which in this case is £881 @40%... not the end of the world... but in August I was given a bonus of £2700 aswell so things are starting to get serious now in my pocket area. Not to mention that I have also done a little overtime here and there this tax year which amounts to £2111.47

42446 {adjusted to reflect 3 months of old salary} + 2700 + 2111.47 = £47,257.47 income projected for this tax year (there won't be another bonus this year and I don't intend to do anymore overtime)

So unless things change this puts £5392.47 above the threshold?

I do have a pension that I pay 4% into (42716 x 0.04=1890.30) which my calculations still leaves me £3502.17 over the threshold.


What I would like to know is am I working these things out properly..? Not necessarily the maths as such, but the concept? If so then can I use salary sacrifice benefits to get myself back under the threshold without losing too much of my take home pay if you know what I mean? We have voucher schemes that I could perhaps take advantage of... or would it be possible to whack some of it into my pension and still not see a fall in take home pay - does that make sense?

:D
↧

IHT and Excepted Estates

November 15, 2014, 8:14 am
$
0
0
One example of an exempt estate is one if the deseased person left everything to a spouse.(Requirement on Form IHT 205)

If a will states that everything is left to a Trustee who is also the Spouse and Will Executor and that the Trustee is to ensure the spouse has access to all of the deseased estate, is this the same as leaving everything to the spouse as required in first para above?
↧

Gift is it taxable

November 15, 2014, 8:52 am
$
0
0
Hi
A friend of mine who i used to work with sold his business two years ago and retired,when the investors looked at the business they stipulated if they purchased i would have to stay for three years.
I agreed after my friend offered me a financial gift from him personally to stay the time they wanted,that time has now elapsed and my friends accountant as written to me to advise the payment will need to be declared on my self assessment
Any advice on this would be helpful because the letter i received clearly stated it was a gift.
↧
↧

Is Tax & Duty Payable For Gift From USA?

November 15, 2014, 10:21 am
$
0
0
My Wife and I are going to New York and I would like to know whether a present she is looking to buy for me would be liable for any tax and duty when we return to the UK.

The item costs about $2900.

What's the position with regards to duties and tax in this case?

Thanks.
↧

Letter from HMRC about 2013/14 "contribution"

November 16, 2014, 10:12 am
$
0
0
OK right, I have received a letter from HMRC to explain how my 2013/14 tax deductions were used.

It rubs me up the wrong way to be shown how much of my tax is being used to support certain things for example pensioners when I have been denied a pension until I am 66 yrs old despite having worked my cogs off from age 16 to 60.
Can I opt out of having this (effing annoying) propaganda sent to me at further expense to myself (tax payer)??
Sleepy
↧
Search

Kitchen Offers Reviews

November 16, 2014, 7:42 pm
$
0
0
Kitchen offers reviews on kitchen-offers are very good. If i were to review kitchen offers i would give them 10 out of 10
↧

Employed and Self-employed and NI contributions

November 16, 2014, 11:48 pm
$
0
0
Hi all,

I have a query on NICs and tax for a tax year when someone is both employed and self-employed in the same tax year (but not at the same time)

My wife left her job at the end of April, so has one month of employment in this tax year. She paid some income tax and Class 1 NICs on her last payslip.

Since then she has become self-employed, and expects her taxable profits to be over the limit for Income Tax and Class 4 NICs this tax year. 2 questions:

- Presumably she can offset the Income tax she paid in her last month of employment against her IT liability from the self-employment?

- Can she do the same with her Class 1 NICs against the Class 4 NICs? If so, will HMRC take care of this when she does her self-assessemnt or do I need to specifically request this? There is a form on HMRC's website (CAZ2B) that talks about "deferment" of Class 4 NICs but not sure this is what she needs.

Many thanks.
↧
↧

£10,000 tax free earnings threshold question

November 17, 2014, 4:31 am
$
0
0
Hi All

I hope I am posting this in the right place.

Next year I am leaving work in August to go travelling around the world for a couple of years.

I currently earn £36,000 per year, so before tax £3000 per month.

If next tax year I only work for 4 months of the tax year (April- July) my pre tax earnings will be £12,000.

I assume this means I should only be taxed on the £2,000 above the £10,000 tax free entitlement? Is this correct?

Obviously I will be taxed 20% as normal from April- July. How do I go about claiming back the tax paid once I leave in July? Will I have to wait until the following March to do this and can I do it whilst out of the country?

I hope this all makes sense and I thank you in advance for your help.

Thanks!
↧

PAYE underpayment?

November 17, 2014, 9:44 am
$
0
0
Hey, just after a bit of advice.

Long story short, I was self employed for 8 months between Feb to Dec 2008 but forgot to deregister until 2012. So I got hit with late return form penalties which is fair enough.

I've been in employment with my current employer since November 2011 and have all payslips detailing nic and tax paid.

Just last month I got a letter through detailing 24k of unpaid amount from April 2013 to July 2014 of which it is listed on the statement of liabilities as

05-04-13
Paye/nic underpayment
class 1 nic £9042.61

05-09-13
Class 1 NIC £1091.44

05-10-13
Tax £808.20
Class 1 nic £1155.58

Etc and every month from then to July this year adding up to £24201.48.

Does anyone have an idea what this is or how to deal with this?. I've been in contact but keep getting bounced around departments with long wait times.
↧

Help with tax evasion investigation.

November 17, 2014, 3:16 pm
$
0
0
Someone I know has been reported to the tax evasion authority. Their main day job is working for the ambulance service as a emergency medical technician,however they do some private first aider duties at events footie matches etc and some work as a DJ at discos and weddings on days off. My friend is convinced it could be a vengeful ex as this person obviously knew about the moonlighting and has informed the ambulance service of this too:(. What is likely to happen? my friend has been sent forms to fill in so its early days.
↧
Viewing all 10212 articles
Browse latest View live
Search