November 29, 2014, 10:59 am
Hi
I've just started a new path in my career and set up my own limited company, wondered if anyone could please help; should I buy lease or rent a car or pickup? I work as a project manager in the Constrcution industry.
The van would be a vw amarok or the car could be a Lexus is 300 or anything with co2 less than 100.
I did hear something about annual investment allowance on pickups? That's if I was to lease/purchase.
Which would save me the most money?
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November 29, 2014, 3:52 pm
Hi all
While doing my self assessment, I realised that during the year my employer switched from deducting my pension contributions from Net to Gross salary.
Do I need to enter either amount on my self assessment return, or does my P60 account for it?
I'm just in the higher rate taxpayer bracket....
Thanks in advance!
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November 30, 2014, 3:21 pm
I assume IHT stands for Inheritance Tax ..
The threshold is £325,000 right?
So if the estate is worth 400,000 do you get the 325,000 tax free and taxed only on the 75,000 ?
Or does the whole 400,000 get taxed?
And what is the % of the tax and are there any tiers?
There will be tears though :)
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December 1, 2014, 2:34 am
I recently started a new job. I had to give my old employer a weeks notice, but the final week had been booked as a holiday so I didn't actually have to work my notice and my new employer asked me to start asap, so I started my new job on the 13th October and my leaving date for the old job was the 18th.
I gave my new employer my P45, but it was returned because the leaving date on the P45 came after my starting date.
I only work 20 hours a week, but now paying emergency tax, code 0T.
Do I have to wait until the end of the tax year for the correct code and rebate, or can I get it changed now?
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December 1, 2014, 4:27 am
Hello all,
My wife has recently started a part time job. She works 22 hours per week @ £9.00 per hour. I was a bit surprised at her pay and that 20% of the whole basic pay was deducted. It says she is on tax code BR, which does not allow for the £10,000 allowance.
I don't know a lot about this, so can someone help me understand if she is on the right tax code?
The only differences to this job from the norm is that she works 8am to 6pm (with one hour lunch break) 2 days and she does 1 half day. To do this, she signed an agreement to work the longer shift. Also, she gets paid weekly.
Unfortunately I did not oversee what she ticked on the P46, so it is likely that she may have ticked the wrong box. She should have ticked box B on the P46, as we lost our self employed work in June and claimed JSA from July to November.
I appreciate any insight or advice.
Thanks.
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December 1, 2014, 6:50 am
I have just received HMRC's version of my Annual Tax Summary for 2013-14.
It is laughable!
They seem to have artificially inflated my "income" by about 10% under a category informatively described as "Other Income" which I have neither earned nor, thankfully, paid tax on.
It is little wonder that government is finding black holes in the economy if HMRC is overstating tax revenues.
I have some considerable sympathy for those who are relying, in vain, on HMRC to get Tax Credit calculations correct.
Is it just me or has anyone else had their income and/or tax payments exaggerated by HMRC?
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December 1, 2014, 7:08 am
Hi there, please help!
I'm doing my Self Assessment Tax return online for only the second time ever and it doesn't seem to be giving me any allowance in the calculation.
I have a PAYE job and I've entered the details from my P60. I also do some Self Employed work, which is why I do a SA. I should only have a little tax to pay, because I earned less than £800 and my expenses came to almost that this year, but when I get to "View your calculation" it tells me I owe thousands!!
I dug out last years to compare and try and see where I['ve gone wrong and in the 2013-14 calculations it says:
pay from employment xxxxxx
profit from self employment xxxxxxx
minus Personal Allowance xxxxxxx
But in this years calculation I'm looking at now, it doesn't mention my personal allowance at all! My tax code for the year was 377T so I should be allowed £,3770 shouldn't I???
Where am I going wrong????
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December 1, 2014, 8:11 am
Apologies if any of these questions seem daft, but I'm new to CGT, and despite having the MSE, HMRC & Which sites I still haven't found an answer to my questions , so hopefully the MSE forumistas can help.
17 years ago I bought some shares in the company I worked at. They were pre-IPO. The shares were £28 each and I bought 30 for myself, and my parents gave me £840 to buy 30 for them too (but only possible in my name). At IPO (after I left the company) they were diluted 100-to-1 which left me with 6,000 shares in the company. I don't believe they were as part of any approved tax scheme.
I'd planned to dispose of them in a tax efficient manner at some point in the future, but they were subject to a takeover in August and a cheque arrived in early September for £14,100.
Am I right in assuming as a HRT I am due to pay CGT of £397 (14100-11000-1680)*28%?
Is there anyway of mitigating the CGT? Buying different shares (or would they have to make a loss)? Happy to donate 10% of any savings I make to charity.
Thanks in advance for any advice.
Cheers
Simon
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December 1, 2014, 2:38 pm
Hi All
I have put this thread in both cutting tax and bankruptcy forum as they seem to cross over.
Got myself in a bit of a mess here with self employment so would just like some advice please.
I sold my first watch that I repaired on ebay in December 2013 and have bought and sold about 30 others until 30 October 2014....doing this part time between my watchmaking studies and looking after my daughter as a stay at home Dad.
Quick calculation shows I have hardly made a profit £100?...Im still a bit slow and still learning!
I have been paying my class 2 NIC since stopping work September 2009 to keep contributions up.
I still haven't register with HMRC yet as I foolishly thought that low profit would mean no need to register, I was wrong!
But to complicate matters, I'm applying for bankruptcy within the next few weeks because of past debts.
So my question are:
1) what kind of fines from HMRC could I be looking at apart from the £100 late to register?
Am I better off stopping self employment until at least my (hopefully) one year of bankruptcy comes to and end with the hope that HMRC may not chase the fines considering the facts above or will they go for it anyway?
Many thanks
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December 1, 2014, 5:13 pm
The whole situation is I was on 12 month long placement last year (started in august 2013, finished in august 2014) and the salary was 14k. I didn't pay tax during my first tax year (until March or April 2014) and then I started paying tax which made sense. And now am taking a part time 16 hours per week and the rate is £7.5/hr.
I can't figure out if I should pay tax or not... because I may get commission as well- depends on my sales performance (it won't be more than £300 though..)
I don't think I've reached the new personal allowance though?
And also am I able to claim the tax I've paid since april 2014? Because I left in august..
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December 1, 2014, 11:56 pm
Hi, I have a property with part of a mortgage outstanding on it, I lived there for 2.5 years (purchased 2009 June left Uk Feb 2012) before going overseas to work, I tried to sell the property but it fell through before I left the UK and has been rented out continuously (except a couple of months due to tenant change). I rent a property overseas so do not own another home.
When Calculating the CGT what can be deducted and what would I end up paying?
Purchase price 130,000 (discounted purchase original Marketed price 199,000)
Spent 5,000 on a conservatory
Current value apprx. 160,000
So in a best case scenario I make 30,000
I can deduct >>>
11,000 CGT allowance
5,000 I spent on the conservatory
3,000 Agency and solicitrs fees.
leaving 11,000 GAIN
CGT at 18% = I have to pay 1,980
Is this correct?
When calculating the gain this is always the purchase price deducted from the sales price not what I owe on the property deducted from the sales price, right?
Any help greatly appreciated... Thanks in advance!
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December 2, 2014, 12:30 am
We have a home for rent next year no mortgage or debt on it. It is a joint owned property one of whom pays basic tax and one that pays no tax due to not having an income.
In order to not be taxed on the income, would the property have to be in the non taxpayers name only?
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December 2, 2014, 2:40 am
As my wife will no longer pay tax, I contacted NS&I about completing an IR85 for non tax deduction on my wife's savings bond and was surprised that they "are not in this scheme".
Why not? Or is this so people don't bother to claim the tax deducted and help make the government more money out of small investors!?
Vigman
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December 2, 2014, 5:31 am
I recently started a new job and have just received my first pay slip.
I started half way through the month and so my Gross Pay was 0.5 the normal amount: £1000.
However, my Net Pay using tax code 1000L, is £759.56. But if I'd worked a full month it is estimated my Net Pay would be £1606.
How can this be right when £1606 * 0.5 = £803?
I'm just trying to understand what I'll regularly be paid. I think the administrator said the low amount was something to do with the fact I haven't earned much this financial year (only £7826.24 in taxable pay) but she may have been referring to this month's salary - I'm not sure. :(
Any help would be appreciated. Thanks.
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December 2, 2014, 6:46 am
I was speaking to a colleague earlier today about savings accounts and the low interest that banks are paying and the conversation moved on to taxes. My colleague mentioned that she has been a higher rate taxpayer for the past 7 years and has had savings with various banks but has never declared any additional income to the HMRC. I mentioned that she's liable for additional tax and that she should contact the HMRC as soon as possible about her savings and interest earned. She's concerned that she might have to pay a fine for not declaring her savings.
Is she likely to receive a fine?
She also doesn't have full records of all her savings, she had savings with Icesave many years ago and doesn't have any paperwork for Icesave. Will the HMRC have records of those savings and taxes paid so that she will know exactly how much tax is owed?
Will she have an option to pay the interest owed as a lump sum instead of a Tax code adjustment?
TIA
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December 2, 2014, 12:18 pm
I have rental income as well as rent that I pay. Is there an option for filling in rent you pay on the self-assessment form?
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December 2, 2014, 2:43 pm
Hi all,
First post here so please if this is in the wrong area, have a mod move it for me. Thanks
Okay so basically, I registered as self employed and joined the CIS (construction industry scheme) in August 2014.
I have been working for one business ( a family friends business) since then, 5 days per week on a daily rate of £45! a low wage indeed!! less than minimum wage for the long hours I work.
My boss told me that when my UTR (Unique tax reference) came through, he would up my wages so that I am not left completely skint after tax - even though I wouldn't earn enough to have much tax deductions...
So fast forward to September, he tells me not to worry about my tax just yet as he is going VAT included soon. So I wait a bit longer, It's then November and he suddenly says I have a tax bill for you for 'a considerable amount' roughly around £6-700 for the time I have worked for him not paying tax.
I argued that I shouldn't owe any where near that amount as I am only earning £225 per week and of that £32 is taxable at say 20% basic rate = £6 total tax per week plus roughly £6 NIC2 contributions.
He says the HMRC want 20% of total wages as you are registered as part of the CIS and this is typical of them. I query this but to no avail.
I am never given a wage slip of any kind, last week when I handed him the invoice for the weeks work like i usually do, an invoice slip filled out by myself, he decideds to deduct 20% of £180 so £36 plus an extra £20 to go towards to the 'considerable amount' I now 'owe' him!
I am perplexed by this and say that I would like to handle my own tax contributions as I am self employed, he says that It used to be that way but not your boss (even if self employed) pays your tax... but he never mentions NI which i'm still paying myself??
I say well that's PAYE and you're not giving me a wage slip or any proof of this tax being deducted from my wages so I have no leg to stand on... He shrugs his shoulders in essence.
Sorry for the essay, I'm paid Friday and this is ruining my financial situation coming up to Christmas, what do i do??
Shall I insist I pay my own TAX and NI? how could he have a tax bill for me if I am not earning enough to be taxed?
It feels dodgy to me.
Any help would be appreciated. thank you
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December 2, 2014, 4:30 pm
sorry if this is a tired thread. I have done my research but often find conflicting information. im about to fill in my forst SA for rental income. I know I can use all my expenses comprising repairs and fees such as remortgage fees, service charge fees as well as 10% wear and tear allowance. but have questions/advice to ask on two points
1. I am also told I can claim using my home as an office at a cost of £208 a year. I can find this mentioned on old hmrc links but not the most recent onen has it therefore been abolished?!
2. rent received is £600 a month. mortgage is £300 (interest only) and service charge £100 a month. so over the year ive made £2400 but bought furniture out of this. my wife is on maternity and money is tight therefore would appreciate any advice to reduce my tax bill. the 10% allowance and some expenses reduces the profit to £1400 but I'm in the 40% tax bracket so stand to lose £600 making it a very disappointing low income for us. id be a lot happier not losing that £600! is there anything im missing in expnses claimed which would help me if people don't mind sharing their tips. if not, no problem I just thought I would check first!!
any help appreciated
thanks
jt
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December 3, 2014, 4:20 am
I am hoping someone will be able to advise on the following:
I have asked my accountant to reduce my payments on account to nil as my SE income for 13/14 is going to be significantly less than 12/13 and also I cant actually afford it.
He has advised however that I will be penalised if I do owe SE tax for the 13/14 tax year and that interest will be charged. I asked if he knew what the % was, but he couldnt help.
Does anyone have an idea of what the penalty is if payments on account are not paid when they should have been.
I am hoping to pay something in March or April which will hopefully help.
Thanks,
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December 3, 2014, 9:13 am
Hi All
This is my first time posting so please bear with me. Mods, if this is in the wrong forum please move to a suitable one.
Heres my story, we have two children that we are claiming child benefit for and prior to tax year 13/14 my salary on my P60 has just been shy of £50k. During tax year 13/14 I undertook a lot of overtime which took my salary to just shy of £60k. Unaware at the time that I am now liable for the recently introduced child benefit high tax charge. Being a complete newbie to tax implications I researched what this would mean and discovered that I need to pay approx. 95% of this back to HMRC. During filling out a self assessment form online I was instructed to declare any income from share schemes to which I added £4441 which was paid to me after selling shares purchased from a SAYE scheme run by my employer. I then went to the review the tax calculation on my self assessment and this stated that I owe HMRC around £5000 before 31st Jan 2015.... not good! (tax on my shares and the 95% of a years worth of child benefit):eek:
Please help!!!.....do i need to declare this amount in the share scheme section as 2/3s of it is money saved through the SAYE and would have been taxed already prior to making the profit? or is it just the profit from it I need to declare? ( although I was under the impression that profit from these schemes had to be over the CGT limit before it could be taxed). Nowhere in the self assessment is CGT mentioned.
Should I leave the share schemes section blank?????
Really unsure as to what to do and any help/advice would be most appreciated
Also only have very limited knowledge of the tax system as never had to do this before.
Most people I have spoken to at work suggest getting an accountant.
Thanks:)
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