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Personal Allowance and HRT bracket

December 28, 2016, 8:09 am
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Hi,

I'm wondering how the personal allowance amount affects your entry into the HRT bracket of £43k. Currently my PA is just over £14k for one reason or another. Does this mean I can earn another £32K so £46K total before I pay 40% or simply I don't pay 20 % on that additional £3k of PA?

Thanks
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Using parent's Personal Savings Allowance?

December 28, 2016, 10:24 am
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Currently I control a couple accounts on behalf of my mom (TSB for £100 switch incentive & Tesco for the DDs). I've got money sitting in her Tesco for the interest & next financial year will move into the 40% income range meaning only £500 PSA rather than the current £1k (and all my regular savers will mature next year which will already exceed the £500).

Does anyone think there'd be any issues with me transferring money to additional accounts of hers (e.g. a 2nd Tesco account)?

Presumably it would be treated as tax avoidence (rather than evasion) so not an issue? As people effectively do the same with their OHs.

The 2nd thought was if she was viewed as depriving assets or something if above £6k for a while but as long as the initial transaction originates from my own bank accounts that shouldn't be an issue also?
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Selling a gifted house

December 28, 2016, 11:23 am
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When my husband's mother died (she was very young) she was afraid that her husband would remarry and her sons would not inherit.

The property was duly transferred into the three brothers names in 1995 and my father in law has continued to live there. He has been ill and is now receiving nursing care, funding costs being met by family. This is not about care fee avoidance. It is now obvious that we have a house that is not likely to be required again.

What happens? Is it a capital gains issue after so many years? Does each son take a hit individually or is tax paid at point of sale. All sons were steelworkers - Two sons have taken early retirement and are living on low pensions but they are not of state pension age, the third son is working.

The Estate Agent is coming tomorrow but we have no idea of the process involved relating to the financial aspect of sale.

Hope someone has had a similar experience?
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Annual tax summary query

December 28, 2016, 12:31 pm
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Hi everyone,
Not sure if this is in the right forum, so sorry if it's not!
After a bit of advice....
Iv recieved my annual tax summary in the last couple of weeks, obviously it gives various details about how much tax I pay and where it's spent etc.
After going through it all, on the right hand side, it tells me the total tax I paid over the year. Underneath this it says 'this is equivalent to 21% of your annual income'. I am only in the 20% tax bracket, so to me this means I am due a rebate?! So I emailed HMRC to query this, my reply basically said, as it's only 1% difference it's too small an amount for them to take action on. Well 1% of my annual income is around £280. I remember last years summary saying the same thing but I just thought, oh they will send me a cheque later on, then I forgot about it and no cheque arrived.
So what do I do? Am I being thick or petty and have not worked it out correctly and should I just leave it? Or am I right and should I keep arguing with them to get my money back, because the way I look at it, I pay 20% tax, not 21%, so that's somewhere near £500 I'm owed all together (I earnt a bit less last year). If I'm honest I don't know a huge amount about the tax world, so any advice or if someone could explain it properly that would be great!
Thanks in advance!
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Joint share ownership

December 29, 2016, 12:04 am
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Hi

I'm looking for some guidance regarding share ownership and cutting my CGT liability.

I recently purchased the options I had in the business that employs me. This was done in my name and the shares were owned by me. I then deposited the shares in my First Direct nominee share account, which is a joint account with my wife.

My question is this: do I still have to transfer a portion of the shares to my wife to use her CGT allowance or does the fact that they are now held by the nominee for our joint benefit help in that same regard?

Any help gratefully received.

Thanks
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Tax and Bonus

December 29, 2016, 6:37 am
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Hopefully a straight forward question...

Say I were to receive a pay increase in Jan which would take me into the 40% pay bracket, and I were to then receive a bonus in April - would the bonus be taxed at 40%?

Or would the bonus still be taxed at 20%, because in the April to April period I would not have earned enough in total to warrant the 40% tax?

I have probably explained that horribly - basically is the 40% tax done on a month by month basis, or is it applied in total based on a years taxable earnings?

Thanks.
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Child Benefit repayment

December 29, 2016, 1:41 pm
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I earned over £60000 in the last tax year and I need to repay the child benefit we received. If we just under £1400 and I paid £1300 in gift aided payments to various charities has anyone any ideas as to how much I will need to repay? Thanks
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Backpayment of salary - tax query

December 30, 2016, 5:27 am
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Hi all,

A quick question which I hope someone can help with! My employers have just discovered that I have been underpaid for the last 3 years and 4 months ( in essence a slight salary increase which never was processed properly). The amount underpaid is approx £6500. I have been advised that I will get this payment next month but that there will be deductions of approx £2500 due to national insurance and tax. Would this be calculated as though I had earned it this year and therefore would I be paying too much tax in this financial year and due any rebate?
If so, how would I request such a rebate.

Many thanks!
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Holiday Let taxation

December 31, 2016, 8:50 am
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Hi

I am cross posting this question about income tax and capital gains tax on Furnished Holiday Lets that are part of main residence such as Annexes or converted outbuildings.

For the purposes of the question the annexe will be self contained but not have its own title.

http://forums.moneysavingexpert.com/showthread.php?t=5579070

If anyone can help could they post on the original thread please ?

Many thanks !

Claire
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How likely is getting more time to pay?

December 31, 2016, 11:37 am
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Hi, I am a sole trader. I owe £3600 for self assessment in Jan 2017. My earnings from Apr 6th this year have been about £4000. My work is now picking up and i have a lot more until next Apr, but I still think I'll be under my personal tax allowance so I shouldn't owe much in Jan 18. I have dropped my POA very low due to this.

So I'm going to call the HRMC for more time to pay next month. What are they like for allowing more time to pay based on these circumstances and how long can you ask for?

I can't get a loan or credit card as my credit rating is not good.

Any advice would be appreciated.
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Council tax bill - request for previous years

December 31, 2016, 2:59 pm
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Hello
I've managed to lose my council tax bills (paper copies) which cover the last 4 years. Would the council be legally required to provide me with paper copies? I phoned up on Friday and they said they couldn't provide past copies but they surely most store them in the system

I've encountered some difficulty and I will need to apply for social housing for my family. We need to prove that we have lived in the local area and from the council's website the main thing they look for a copy of a council tax bill.

Thanks
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Tax return help!

January 1, 2017, 8:09 am
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I've never had to complete a tax return before and am so confused! I've not had a letter from HMRC asking me to complete one but I think I need to, just not sure when. I registered for self assessment last January as I had decided to do some locum work alongside my permanent PAYE job (first date I did locum work was Nov 2015, last date May 2016). When I spoke to HMRC in Jan 16 they said I did not need to complete a tax return until the following tax year so I assume this will be after April 2017? I've just looked at the online tax return and am completely bamboozled. I don't now what category my locum earnings would fall in (I didn't register as self employed, on the advice of HMRC). I don't know what category my mileage expenses paid by my permanent employer fall in. I don't know whether I need to record that part of the salary they have taxed me on from my permanent employer was a car allowance. I want to claim tax relief on professional subscriptions and don't know where to record these. HMRC speak to me like I'm a moron (which as a vet I'd like to think that I'm not!). Can anyone shed any light or direct me to a helpful resource? My husband has said I can just write to HMRC listing all my income and expenses and they will calculate it for me?
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Company Car Allowance and Claiming Back Allowance / MTR

January 1, 2017, 11:46 am
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Evening,

I have taking the company car allowance to get my own car, but I am struggling to understand how I claim back the .45p (1st 10,000) and .25p per mile (>10,000), given I will be given a fuel card to use. I understand I will have to claim back Mileage Tax Relief, as the company will not pay these rates.

My understanding is, taxed at 40%, an example for 10,000 miles would allow me to claim as follows:

10000 miles x .45p x 40% = £1,800 for that tax year?

I do not understand why I can't claim the actual .45p per mile, rather than the relief, but accept the fuel cost would be deducted from this as it is also to account for depreciation / maintenance etc.

Has anyone taken the allowance, and been given a company fuel card and explain how this works for them?

Many Thanks.

:money:
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Top Slicing HR tax payer

January 1, 2017, 12:56 pm
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If deceased had held insurance bonds (for say 19 years) and during that time had always been a basic rate tax payer, but due to change in circumstances (spouse death and acquisition of spouse's half pension) had become a 40% tax rate payer in the year of death, then (roughly) the increase in value between the insurance payout and the initial premium would be divided by the number of years (19) and tax charged at 40% on that figure multiplied by the number of years held.
Am I correct, as it seems unfair to be taxed for 19 years at 40% when there is only one year where income actually exceeds basic tax level.
Is there any way of making use of any prior years basic tax band when it exceeded the actual income in those years?
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Cancelled car tax so i could switch DD to other bank - now i can't start new DD.

January 2, 2017, 3:54 pm
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Hi,

2 weeks ago I cancelled my car tax DD so I could switch the DD to my main bank account, as this is what I advised to do if i wanted to switch the DD to a different bank account.

My car tax was paid until 2nd jan (today) so today I went to the tax website to re-register my car tax DD with my main bank. Here's the problem, you need to have been sent the tax reminder letter to do this and without the letter it won't let you tax your car. To get the letter you have to pay £25. That's ridicluous, I wasn't told this previously.

So, here I am in this situation where my car is not currently taxed and I want to tax it but the government website won't let me because I don't have one of those letters.

What can I do?
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Self Assessment Help - Foreign Income

January 3, 2017, 1:31 am
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I thought it'd be straightforward, maybe it is and haven't got the hang of it yet.
I need to report foreign income through my self-assessment; there's a section, etc though everything needs to be reported in £... Do I use the Average for the Year on the HMRC website?
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14/15 underpaid tax

January 3, 2017, 7:19 am
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Hi all,

I had underpaid tax in my 14/15 return due to some self-employed income. I had requested for this to be collected through my 15/16 tax coding (& HMRC had agreed to this) but from looking at it it seems that this has not happened (I received no notice of coding and my tax code is the standard 1100L).

Do I:

A) Need to inform HMRC of this through the 15/16 return? I.e. via response to the question below (the question simply asks if my underpaid tax has been included in my coding - it hasn't, so not sure if this is the right place?):

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

B) Just submit the return without mention of the issue as HMRC should do a full calculation taking into account both financial years and recognise the error

C) Pick up the phone to HMRC to discuss the issue

Could do without being stung with a request for a lump sum payment for this as I don't have the cash to hand at the moment (the underpayment was just shy of the £3k limit and I have income tax for 15/16 to pay also). Are they likely to let me repay through my 16/17 or 17/18 coding / installment plan even though I have missed the 30th December cut-off given this appears to be a HMRC mistake?

Any advice would be greatly appreciated!

Thanks

Tom
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Self Assessment and Partnership tax return questions

January 3, 2017, 8:46 am
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Hello all, Happy New Year :)

I'm after some advice regarding tax returns, I've completed them online in the past so have a little experience there both as an employee and as self-employed.

My situation is different now, in the 2015/16 tax year I started a business with my Wife, we set it up as a Partnership and I understand that we need to submit a tax return each as individuals and one for the Partnership.

My questions are:

1) To start the business we loaned it some capital from our personal savings. How do we reflect this loan in our tax returns and will these details need to be entered in both the personal and Partnership returns?

2) The above loan was not repaid until the following tax year (2016/17), how will I be able to carry this outstanding debt forward to the 2016/17 tax return?

3) I understand that we need to submit the Partnership tax return using software approved by HMRC as detailed on their website as linkned from this page - https://www.gov.uk/software-tax-returns

Our tax returns are not complex and so I don't wish to over complicate. or indeed overspend on unnecessary software. Does anyone have any experience or recommendations for which software to use?

4) We're thinking that the "Cash Basis" - https://www.gov.uk/simpler-income-tax-cash-basis would be the best way forward for our simplistic needs. Any thoughts?

5) We inherited a van that we use for business only, it's value is negligible but it's clearly invaluable to the business. Any thoughts on including this in the return?

Any help would be much appreciated.

Thanks, DM.
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Tax On Gifts

January 3, 2017, 11:14 am
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About three or four years ago, my daughter was very fortunate to be given a house by my ex-wife. She now wishes to move from this house (current value about £120,000) and wishes to sell. My question is, does she have any tax liability and if so, how much would she be liable for? She estimates the value of the house at the time it was gifted to her as being £90,000.

Thank you

David
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Tax when selling a Let house

January 4, 2017, 6:14 am
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I have one home that I have let in total for 4 years due to my employment assigning me either overseas or away from where my property is (military). I am due to leave the services this year and wish to sell the property and purchase elsewhere for me to live in. I have not had any major improvements done on the property whilst letting it only the odd repair here and there that I claimed on my tax return. I am not living in the property and have a tenant still residing. My agency have said that they have an interested buyer - if I was to sell to this buyer would I be liable to pay additional tax? or do I have to move in to the property for a set time before I can sell to avoid the additional tax. Thank you in advance.
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