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tax code can anyone help

September 12, 2019, 7:51 am
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my mother was taken ill 5 months back and as now had to retire , she as asked me to sort out all her tax affairs before switching from salary to pension income, I have just seen that she is on a K code and seen the amout of tax she as been paying is ridiculous , my mum is one of those people who doesn't challenge anything and trusts everyone.
After speaking too her she said she got a big tax bill out of the blue a year after taking phase retirement from the teachers pension , were she got 75% of her pension and dropped a day a week of work which she got a salary for . she had worked over her retirement age and was also getting her state pension.
Can some one explain the K989 0 Code she as been on for the last 7 yrs and if it is something we should see an accountant for . looking on google it says K codes are used if someone as too many perks ie Company car , she doesn't claim for anything and owns her own car , so I am confused as to why she is on a K code
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Minimising tax on Sharesave

September 12, 2019, 12:33 pm
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Hello,


My sharesave matures in December 2019.

Information:
  • Original share price : £2.2
  • Total paid in at end: £14400
  • Final share price (estimate): £13.5 - It’s been a good year!
  • Final value (estimate): £88000
  • I’m married
  • My wife and I have our full ISA allowance remaining
  • My wife and I have not used any CGA


Is the following correct?

Transfer £20k worth of shares to my wife’s ISA. Sell them in the ISA, then cash them in.
Transfer £20k worth of shares to my own ISA. Sell them in the ISA, then cash them in.
No tax to pay for either of the above.

This leaves me with 3555 shares (worth £48000). These cost me 3555*2.2 = £7821. So, gains of 48000 - 7821 = £40179. If I sell them and have them transferred directly to our shared account, I can use up both my own and my wife’s capital gains tax allowance (24k totol).

So, I only have to pay capital gains on (40179 - 24000) = £16179.

At 20%, this is 0.2 * 16179 = £3235.8

So, of the £88000, I only need to pay £3235.8 ?
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Employer Travel Loan

September 12, 2019, 12:47 pm
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Hello All,

First post on here and I'd welcome some advice (well, second actually as I miss-posted this elsewhere originally - oops).

For the tax year 2018/19 I took out two travel loans through my employer which, combined, took me above the £10k threshold for the first time.

In mid July, I received a message from HMRC advising that I had underpaid tax and they are now taking £2,050 spread across four payslips in order to recoup this. The figure struck me as high, so I called to find out more and they confirmed it was because of the loan amount on my P11d. This, to be precise, was £10,445.80.

I spoke with my employer who confirmed that they had entered it correctly, under section M of the P11d form and that there was nothing further they could do. I called HMRC again to ask for more advice, only to be suddenly told that I had underpaid by an even larger amount - subsequently, the agent triggered a P800 and advised that I would soon receive this in the post with a deadline to pay by end of year.

This means that by going over the threshold by £445.80, I am now being told to pay over £4,000 in tax! I am a higher rate tax payer but I am not convinced this has been calculated correctly.

Can anyone offer some advice? HMRC say there's nothing further they can do unless the P11d figure is amended, and my employer simply doesn't want to know and has stated that this is correct.

If it is right, then I will reluctantly drop the issue but to be hit with such a huge amount really doesn't seem justified.

All help and insight greatly appreciated, including how and who I can escalate this with from here if necessary, as one thing that's very clear is neither HMRC or my employer will budge.

Thank you!
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Tax on limited company secondary income

September 13, 2019, 5:23 am
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Hi, the more I read the more I'm confused, so any help would be appreciated.

I'm employed full time (PAYE) and my salary is just over the higher rate threshold.

I have a secondary income, currently as a sole trader, where I declare my income through self assessment each year. Because of my primary income, all this income is at the higher 40% tax rate.

What I'm trying to work out, is would it be advantageous to change my secondary income business to a limited company. I realise you pay 19% from next corporation tax on all profit - but it's whether I'd also be paying 7.5% on the dividend or 32.5% on the dividend. The more I read the more confused I get. If it was 19% plus 32.5%, this obviously wouldn't a tax efficient way of doing things.

Thanks in advance!!
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Deceased Wife’s Tax - Big bill

September 13, 2019, 5:39 am
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Hello, I’m new, in fact first post!

My wife died 2 years ago now and I’ve received a big tax bill relating to the last 2 years of her life...income tax and tax for stocks and shares. What I’d like to know is can I appeal this bill. My wife had Motor Neurone Disease for 4 years and the last two years of her life she couldn’t move and communicate so was unable to file her tax and unfortunately I was and am a bit clueless with these issues, all of my time and energy was put into looking after her needs. She did put most things in place, but this. Any help would be grateful, and I know some will say get an accountant but I can’t afford one. I have told hmrc about her problems but so far has fallen on deaf ears?:(
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Shall I propose to my new employer to hire me via my LTD?

September 13, 2019, 7:51 am
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Hello!

Does it make sense to suggest my new employer to employ me via my LTD?

How much will I save (%) and what are the pros and cons?

Thanks!
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Tax Rebate refund hasn't been paid

September 13, 2019, 11:21 am
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Not sure if I am being a bit premature here, but 2 days ago I submitted for my tax refund to be paid directly to my Halifax direct debit bank account. It asked for my sort code and account number then asked me if my home address was the correct one they had on file (I imagine the address is linked to my card in some way).

Yesterday it said it was processing and today it said that HMRC has paid my tax refund. However, it hasn't shown up in my bank account. How long does it usually take before I need to start panicking? :eek:
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rror in filling in tax form

September 14, 2019, 4:13 am
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i have been speaking with my mother about the tax forms she as been submitting
because she as been on a K code for a number of years , i think i have found a problem and what to know if i am right in my thinking and what to do about it .
my mum is a member of the teachers pension and pays 11.7% of her salary towards this .
on the tax forms she as been submitting ,she says she as been putting down the full salary figure not the salary figure munus the 11.7% figure . Am i right in thinking this is wrong and if i am ,how many years back can she go to reclaim this . We are booking an appointment next week to see a tax accountant , just want to make sure i am thinking right before going .
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CGT over 30 years ago

September 15, 2019, 3:41 am
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My mum wants to cash in some of the shares she bought during the Thatcher years, and some of the ones she got for free during the period when building societies became banks but we're thoroughly confused by CGT rules.

So for her Abbey national shares, which became Santander, is the amount for capital gains purposes basically the difference between £0 and their value on the day they are sold (as Santander shares) or does the value when they changed from Abbey to Santander have anything to do with it?

Similiarly with SSE shares which was Hydro Electric - she used the dividends to automatically buy more shares, does that affect anything? Also, she thinks she got 2 shares for each one she originally held - could this be right and if so, does that make a difference?!

She's contemplating only selling £12k worth (current value) as that seems the safest/easiest option as that's her allowance for the year and wouldn't require her to report anything, or work out complicated sums from 40 years ago - but I'm now wondering if even that's right! Thanks in advance for any help.
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Starting up in business

September 16, 2019, 12:48 am
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Hi everyone, I am looking for guidance on starting a business...
Due to ill health , I need to leave my current profession, in the construction industry. For over 30 years I have been a collector of antiques.. and would like to start an online antique business.
My questions , if anyone can help are
1 ) how do I transfer my collection to my business ? ( I will operate as a sole trader)
2) can I offset the cost of obtaining my collection in the first place? A lot of which has been imported.
3) if my collection becomes stock .. if this doesn’t work can I just take it back ?
Many thanks yours in anticipation
Steve
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Reporting Capital Gain Through Government Gateway

September 16, 2019, 2:01 am
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I have a capital gain to report for the last tax year (no tax is due). (The proceeds exceed 4 times the annual exemption) I am led to believe that I can report this via the Government Gateway using 'real time service'. I've looked at my Personal Tax Account and cannot see how to report this information. Can someone assist me please? I do not need to register for Self Assessment. Thank you.

I think I've found the answer!
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Does one off pension contribution from net pay make more sense in my case?

September 16, 2019, 9:09 am
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I am considering making a one off lump sum contribution to my pensions in order to bring down the tax band. My current tax band is 40%.

I have been told that making a contribution via my employer is best because this will go from the gross pay and thus no tax will be deducted - nice and simple.

I have also been told that if I make a contribution on my own from my net pay then the pensions provider can claim 20% tax immediately and the remaining 20% I will have to claim myself by making a self assessment.

I am a fairly long way from retirement. I would prefer to have as much cash as possible accessible to me now rather than locked away in pensions, while not having to pay the higher rate tax. So I am thinking if I make the contribution from my net pay then any tax I reclaim at the end of the year will be in my pocket i.e. I can keep 20% of the lump sum in my pocket while not having to pay higher rate tax.

Does this make sense? Have I missed anything?
Is there any disadvantages of doing this?
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Tax Return - Redundancy

September 16, 2019, 9:32 am
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Hi, wonder if anyone can help.


I'm just doing my tax return for 2018/19. In April 2018, I took a redundancy settlement over the £30k tax free limit.


My question - on the tax return, do I detail this under "Employment" or just under "Other UK income / Employment lump sums"?


Many thanks
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Business mileage

September 16, 2019, 12:01 pm
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I’ve moved to a part of our company which has the added perk of a car so I’m trying to get my head around “business mileage”. My manager has told me what I can and cannot claim, but I want to make sure it is all above board!

Here are my two examples...

1) If I travel to a site from home, and go directly back home afterwards... is that whole trip classified as “business mileage”? In previous jobs I always had to deduct my home to work base mileage... but in this company I’m told no, the whole journey is business and therefore covered.

2) My new job is temporarily based at an office closer to my house (the whole company will move there in the future but some staff including my role are moving now)! We’ve been told that as this is a temp base pending reviews for the business as a whole, we can claim business travel to it for up to 2 years. So again... even though it’s closer than my permanent base, it’s business none the less?

At this rate I all the fuel I’ll use will be covered by the company, but I just want to make sure this is legit!
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Moving your tax free amount

September 16, 2019, 3:36 pm
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Hello. Basically, I'm encountering an issue right now two months ago, I've changed my full time job while I've remained a bank staff to the old one, where I'm only working around 20 hours a month. My new job is still getting taxed using the brx code and Im not able to transfer the tax free allowance from my previous employer to the new one. I've contacted hmrc about it, and someone told me that they can't switch the allowance or tax code from one job to the other, that I need the p45. P45 is only given if you cease to work for a place, which I do not want. I didint had time to argue on the phone with the hmrc or probably I haven't understood properly , so I'm asking here if anyone has been trough this and managed to have a solution that didint involved handing over his resignation, I can't believe that they can't do anything about it unless I resign.
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Claiming back mileage difference.

September 17, 2019, 1:18 am
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Hi all,
Quick question relating to claiming back mileage/ tax on mileage......
I get paid a car allowance by my employer. This doesn’t include mileage/ petrol. I claim any business mileage via expenses at 12p per mile.
A colleague recently told me that I can claim back the difference up to 45p per mile from HMRC at the end of the tax year.
But what I’ve found online is that I can claim the TAX back on the difference between 12p and 45p per mile.
Can anyone confirm if it’s the tax on the difference, or the actual difference amount please?
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Company car tax, how/when calculated

September 17, 2019, 6:37 am
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Just a(some) quick question regarding how company car tax / bik is calculated and how it would affect child benefit.
April next year it makes it a no-brainer to purchase an electric car due to 0% rate. We will be looking to lease rather than purchase outright.

Wife and I are 50/50 shareholder and director, each take home £50k split between salary and dividends, and claim child benefit for 3 kids so bang at the limit of the 20% tax band.

Ideally we'd have the new car from 6th april. I presume as the BIK is 0% for 20/21 I can still draw £50k, pay no extra tax and be elligible for child benefit, and then in 21/22 when its 1%, I just reduce dividends or salary taken by p11d*0.01 to avoid losing child benefit?

My follow up questions are: If the car can't be ordered to be delivered and registered on a certain day, and it arrives on say 1st march, then its 16% bik. Even though only one a bit months left of tax year would I still pay the full 16% of p11d * my tax rate (40% now?) or is it 1/12 of that rate?

Other question is we'll both be driving the car, can the bik in year 2 be split between us, eg 0.5% each?
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Import tax on an item I'm repairing?

September 17, 2019, 10:57 am
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Wasn't too sure which category this should go under. Basically I am offering a repair service on eBay for Macbooks (self employed and it's all documented). I have had a buyer from Spain purchase the listing and they have already shipped the MacBook to me

It's just occured to me that I may end up being charged by customs for receiving this item, however I am not keeping it and I will be shipping it back the same day I receive it after its repaired, although it will be going through eBay's GSP rather than direct to the buyers address

Where do I stand in regards to tax on that? Am I likely to receive a customs bill and can I dispute it in any way?
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4 Weekly Pay

September 17, 2019, 1:36 pm
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Hi guys,
Apologies if this is in the incorrect forum, but any help would be appreciated.

My employer is moving from monthly pay 12 yearly payments, to 4 weekly pay (13 payments) they have advised that our tax code will change as we are getting paid more often, which I understand, however they are not doing this at the beginning of the tax year, but in October.

We are already halfway through the year and between the change and the end of the tax year 5th April there will still only be 6 payments, so a change of tax code lowering my tax allowance would surely mean I will be overcharged? Or am I wrong?

Also, because we are halfway through the year and they are claiming the 13 pay packets they are saying they will pay us less too, so for example if I was on 12k it would change from 12k / 12 months - £1k per month to 12k / 13 payments - £923... This is fine if we were starting at the beginning of the tax year, but as we are halfway through the year I do not believe that they can pay my contractual salary. I have queried this with them, but they claim that paying my after April 5th 2020 is still legal, even though it will be outside the tax year and to my mind be a breach of contract???

Apologies if this doesn't make sense, I'm very concerned for my families financial future as I am the sole bread winner and a loss of a minimum £160 per pay packet will put us under immense strain.

Any help would be appreciated
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Tax demand

September 18, 2019, 1:42 am
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Hello all
Sorry if this is in the wrong place hopefully someone who knows better will move it if it is.
HMRC have asked me to do a self assesment tax return for 2018/19 as I have always been employed and therefore PAYE so never filled one in before. When I did it says I owe £3880 in tax! When I phoned to check they said it was because my income had gone over £100k in the last tax year.
It only went over £100k because I cashed a pension to pay off my mortgage. I am a 40% tax payer and paid tax at 40% on the pension (less the 25% tax free amount) as well as my normal 20% and 40% tax on my salary can anybody explain this or does it sound correct.


thanks
Andy
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