December 16, 2016, 3:18 pm
When filing my 2014-15 return I was asked to pay a sum on account; I assumed this applied to self-employed only (I have just pension and savings/investment interest) and declined.
I now realise that this was because my outstanding tax was more than £1000 for the first time (although I have still not seen this stated anywhere).
The same occurred when filing my 2015-16 return.
When I got my 2015-16 SA statement it included accruing late payment interest of £40 for payments on account due in January and July 2016.
My questions are as follows:
1 Where is there comprehensive information on payment on account? I cant find it anywhere on the HMRC site.
2 What is the rate of interest applied in the event of nonpayment?
3 It seems to me that it is a better deal to pay the small amount of interest each year and invest the two large sums that I therefore do not pay early. Is this reasonable or am I missing something?
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December 17, 2016, 2:35 am
I do not fully understand the new dividend tax in the context for a sole director/shareholder. It seems like your PAYE income PLUS dividend income dictates the amount of tax, and that for income below £32,001, the the sensible option is to exhaust allowances, then pay it as dividends. Above £32,000, the sensible option for that part is to pay it via PAYE.
I am the sole director/shareholder. I will draw about £40k in the current tax year. My interpretation of this is:
- £4500 (to pay off the director's loan account)
- £11000 (via PAYE and exempt due to personal allowance)
- £1100 (via PAYE and exempt due to marriage allowance)
- £5000 (via dividend and exempt due to dividend allowance)
£18,400 (i.e. total minus director's loan account, minus dividend allowance) is taxed at the new 7.5% dividend tax (and not subject to income tax at all).
Have I understood this correctly?
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December 17, 2016, 9:51 am
Hi.
I have a BTL property and mortgage on it.
If I transfer the tenancy agreement to my brothers name and tenant pays the rent directly into his account. Who will be liable for the tax?
Thanks
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December 19, 2016, 4:12 am
Hi. I'm a higher rate tax payer and I've had to fill in my tax return each year. I've just filled it in for the past year and I've received a message from HMRC saying that I no longer need to fill in the return unless I'm asked to unless there's a change of circumstances.
However, unless I fill in the tax return, how do small variable items like savings interest and charity donations get factored in?
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December 20, 2016, 11:21 am
I am interested in how the numbers that appear on a P60 are calculated please. I am interested in the 2015/2016 year.
Are there any usable on-line calculators? I cannot seem to find any.
Kind regards,
Andy
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December 21, 2016, 2:34 am
A bit of background; my husband was made redundant at the end of January and claimed jsa. In July he started contracting and became self employed and at the beginning of December he started a new permanent role for a company back on PAYE.
Whilst he was contracting we've put aside money for tax and in for when he does his tax return and will get that sorted as soon as we can but he has now ceased trading as a self employed person.
He just got his December payslip for his new job and there is 0 tax on it with a tax code of 1303L. I presume that this is because for HMRC it looks like he hasn't earned anything this year but also presume we want him to be paying tax through employment so were not stung even more through self assessment?
I think he's going to call HMRC and make sure they know he has ceased trading but is this something we need to worry about?
I think I will put the extra salary away with the other tax money just in case!
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December 21, 2016, 2:43 am
Hi, I need to buy a laptop so I can work when on business travel. I feel I should fairly be able to claim the tax back on this as it will only get used for business but there is nothing online about how to get the tax back. Only for self-employed people but I am an employee.
Thanks.
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December 21, 2016, 6:51 am
http://www.bbc.com/news/business-38389969
Ha, bloody ha. HMRC you are so funny and thank you for that hilarious list. We already get it from TV licensing, the police (999 calls, speeding etc), insurance companies and various other parasites, so it's not surprising you've got on the 'poke fun at Joe Public' bandwagon. Well I've got news for you: most of the excuses are taking the p1ss out of you and you don't realise it! Some, of course are down to stupidity, but the average stupidity of your paymasters pales into insignificance when we look at your stupidity (and those of the other aforementioned mocking organisations).
You are institutionally stupid.
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December 21, 2016, 7:00 am
You know the rule whereby the first £5000 of investment income is taxed at 0% for 2015/16?
Well this works fine with HMRC generally, but they have a software problem for any of us who have transferred out our marriage allowance to our partner.
They confess to having a "system problem" that fails to take this 0% rate into account in this circumstance, meaning that any tax calculations that have already been sent out are likely to be wrong. In my case they sent me a bill for £150, instead of a refund of £50.
It may be worth checking any calculations you've been sent!
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December 21, 2016, 1:56 pm
I received a letter from HMRC today advising me that are starting a compliance check.
Are these generally random or do they indicate something is wrong.
Almost all my income is PAYE apart from last year about 500 in dividend income offset by about 100 of charity donations....
When all in said and done, I had to pay them about £7...
In prior years I have had rebates between £20 and £80.... Like I said pretty straightforward....
If I read tax advisor sites they seem to suggest these are rarely at random and they recommend seeking assistance (no surprise!).
Wondered if there was any experience - I am going to give them a call tomorrow... I think I may have ticked a box somewhere which has triggered it as they want to know about my directorships and dividends taken... I am a 'director' of a number of subsidiary companies which I carry out under the terms of my employment but do not receive any dividends etc resulting from this which are not included in my income and on p60.
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December 22, 2016, 2:49 am
I am self employed and my income has dropped significantly this current tax year, and as of around April I've been earning around half of what I did the previous year. I can no longer afford to live and am moving back in with my parents and looking for a full-time job
As well as that, I got a really mixed up with the dates and thought that, because of my low earnings, I'd have hardly any tax to pay in January... I was actually thinking I might get a rebate (foolish I know)
But have just found out recently that I have to try and find £1850 within just over a month.
I called up HMRC today to see if I could pay in installments. I *can* pay them, just it'll be a struggle to pay them on time. HMRC said I need to try and find alternative means of payment my taxes such as a loan or overdraft from the bank.
Is it likely I'll be able to get a small business loan to pay taxes? I've taken one out in the past but it was for business purposes, I doubt they'd agree to give me one if I said it was because I'm struggling to pay my tax?
I do have a £500 overdraft on my business account, so I could try and increase that... but going by my earnings I doubt they'd increase it too much (if at all)
Any advice would be appreciated
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December 22, 2016, 12:33 pm
My earning for year 2016-2017 will be approx 47/48000 due to a 6 month promotion at work. My earnings 2017/2018 will be around 38000. Wjat happens with regards to tax?
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December 22, 2016, 5:29 pm
Hello all,
I've started a new job and am now in the higher-rate tax bracket.
I'm looking at ways to salary sacrifice my income and am trying to work out the numbers for paying more into my pension. I am also using childcare vouchers, so this is an additional consideration for dropping back into the basic rate tax bracket.
For simplicity, the numbers I am using for my question and calculations are:
- Salary (gross): £47000 (£3916/month)
- Salary Sacrifice - Childcare Vouchers: £243/month (only get this amount if taxible pay is <£43000)
- Salary Sacrifice - Private Medical Insurance: £63/month (with Taxible BIK at £124/month)
- Salary Sacrifice - Pension: ? (new employer pays 5% contributions)
There is a difference of (47000-43000)= £4000 that I need to sacrifice each year so I drop to the £43000 amount and remain in the basic-rate tax bracket.
What amount should I salary sacrifice into the pension each month? Is it:
- All £4000/year into the pension?
- £328/year (£4000 minus the childcare vouchers (£2916/year) and PMI (£756/year))
- Something else?
Thank you for your help.
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December 23, 2016, 1:30 pm
Last year, I was a higher-rate taxpayer, while my wife was unemployed, and thus paid no tax.
We have a joint account which earned interest, taxed at 20%.
Now, *technically*, I should self-assess, and declare half of the interest, getting that half taxed at 40%. Then my wife can fill out a form, and get her half taxed at 0%.
Or we could just not do either (i.e. I don't declare the savings interest on my return), and it works out as exactly the same tax paid between us.
Would you bother to jump these hoops to pay an extra few quid, and then get the same amount back in the post?
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December 23, 2016, 6:21 pm
Im a bit unsure on the new CGT ruling , can someone clarify please?
Off UK GOV site ----
"This measure reduces from 6 April 2016 the 18% rate of CGT to 10% and the 28% rate of CGT to 20% for chargeable gains, except in relation to chargeable gains accruing on the disposal of residential property (that do not qualify for private residence relief), and carried interest. "
The statement within brackets --- can that mean the reduced rate CGT could apply to private properties which have been lived in by owners for half the time and rented out the other half (whilst the owners rent elsewhere) as such properties do qualify for SOME private residence relief? It doesnt actually say you have to qualify FULLY for PPR , does it , so is that a loophole?
And what is 'carried interest' referring to please?
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December 24, 2016, 3:28 am
Hello
I am having trouble with my self assessment on the field "Underpaid tax for earlier years included in your tax code for 2015-16 (from your PAYE Notice of Coding). Please enter '0' if there is nothing shown."
The help section says:
Quote:
Underpaid tax for earlier years included in your tax code for 2015 to 2016
If your 2015 to 2016 tax code was reduced during the year because of a change in circumstances, you may not have paid enough tax. Look at your 2015 to 2016 PAYE Coding Notice. If it includes the message 'our estimate of the underpayment for the earlier part of the year is £xxxxx' then this amount is automatically shown on your return.
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I was told before that the figure for this field was supposed to come from my 2014-15 P800. In the P800 there was a "Tax underpaid" amount of £1052.60.
However the HMRC website suggests to look at my P2 instead. On the latest P2/PAYE notice I got, I had an "Underpayment Restriction" of £1258, based on the below calculation;
Quote:
We previously told you that you owe £251.74 tax from an earlier tax year. To collect this we have reduced your tax-free amount by £1258.00. We expect you to pay tax at 20% on an extra £1258.00 this year and this should collect the amount due (£1258.00 at 20% is £251.74). For more information on tax rates see note 5 below.
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From this I would have filled in £251.74 in the 2014-15 self-assessment. I'm really confused that the figures are different - the P800 is dated 2 weeks after the P2, and I suspect it's the correct figure, but I'm unclear why the HMRC's help centre says to take the figure from the P2 instead. I'm also unclear about the nomenclature used: "Underpaid tax
for earlier years". So this should be tax I underpaid in 2013-14, correct?
For the record, my only previous P800 was from 2013-14 and has £191.60 underpaid tax. This is the first year I started working so there shouldn't be leftover underpaid tax from earlier years.
I was also told that the following field; "Estimated underpaid tax for 2015-16 to be included in your PAYE tax code for 2016-17 (from your PAYE Notice of Coding)" should be left empty for 2014-15 as I don't have a P800 for 2015-16 yet. That will come after I send the self-assessment. Is this correct?
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December 26, 2016, 3:35 am
Good Morning Everyone,
This is my First post in the Forum as I need to ask for your advice. I got a letter on Christmas Eve (how nice from them) from HMRC stating I owe them £1214.20 for the Tax year of 2015/2016 but on the calculation I found something I really don't get hence this post. Have a look on the data from the letter below.
(I worked in 2 different places)
Income / Income Tax
1st Employer - £12977.14 / £885.40
2nd Employer - £6782.38 / £650.00
Medical Insurance - £28.00
Benefits in Kind - £47.00 / £0.00
Total - £19834.52 / £1535.40
LESS YOUR DEDUCTIONS - Amount / Income
Other Expenses(I had mileage allowance) - £726.00
Flat Rate Job Expenses - £60.00
Total Deductions - £786.00
Your Income Less Total Deductions - £19048.52
LESS YOUR ALLOWANCES - Amount / Income
Personal Allowance - £10600.00
Total Tax Free Amount - £10600.00
Your Total Taxable Income - £8448.52
INCOME TAX RATE(S) - Income / Income Tax
Basic Rate at 20% on - £8448.00 / £1689.60
Total - £8448.00 / £1689.60
RESULT - Income Tax
Total Tax Payable £1689.60
Tax you've Already Paid £1535.40
Tax Already Repaid to You for the Year £1060.00
You Owe HMRC £1214.20
But my question comes from the fact I didn't received any tax back from HMRC. The only amount I got was £650.00 from my mileage allowance.
Can you help please?
Thank you so much!
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December 26, 2016, 9:22 am
I have a partnership which hasnt traded since dec 2014.
I filed my 2014-2015 return and now wondering how I do my 2015-2016 one, do I have to fill out SA800 if we neither traded or made profit? Im dubious about doing the return as I have to pay to use software to file a partnership return but then dont want to get stung with a fine if I am meant to?
Can I phone them and tell them it finished or do I have to complete SA800, and file nil?
Hope someone can offer some insight as cant seem to find anything helpful online via HMRC
:-)
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December 28, 2016, 5:15 am
Am I right in thinking any money you receive as a result of parental death is subject to income tax? Please note I am pretty clear on the subject of inheritance tax and how it affects me (or not). This is specifically about income tax. I have a brother who is already just inside the 40% bracket. I am not a tax payer at the moment. We both stand to inheritance a good sum which will not make us subject to IHT but I am concerned about the income tax brackets. Can anything be done about it? Why pay the tax man 40% of what your father left you?
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December 28, 2016, 7:27 am
Trying to do my husband's assessment. As his passport has lapsed, have had to answer the credit check questions, but then come grinding to a halt with the message "technical difficulties try again in 5 minutes". Am I doing something wrong? Never had a problem before.
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