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

K tax code

September 25, 2019, 3:03 am
$
0
0
Hello,

I am new to the UK tax system and first time i have entered a K tax code this month. I have a single job, no benefits, no other income. My annual income is estimated by my company for this year around 115K (although it may end up lower based on the company's stock prices). Used to be in 1250L code and i moved to K75 M1 code this month.

I guess this is because of the 15K income over the 100K that reduces my personal allowance from 12500 to 5000 (if my calculations are correct). Does this mean that i have to pay additional tax of 20% x 7500 = 1500 if i end up to earn 115K?

I visited my HMRC tax account and checked the figures, but it is not clear to me how they end up to the "75" part of the K code. And if this is a one-time correction for a single month or a correction for every month till the end of the financial year. This month they just increased the tax by 450, so a bit confused how they will end up to get the needed tax.

Read also some posts that i can contribute some money (the over 100K) to the Pension scheme to recover my personal allowance but not very clear to me how to do the figures to see if it is worthing.
↧
Search

Self employed trading allowance

September 25, 2019, 4:05 am
$
0
0
Hi,can anyone explain how this works please.As I understand it you can claim £1000 allowance against tax whereas my expenses only come to around £380. In fact I will be under the tax personal allowance anyway but it would mean slightly less class 4 NIC to pay.
↧
↧

The 2020 EV car tax benefit

September 25, 2019, 7:20 am
$
0
0
I run a LTD company and was advised by my accountant last year that in my position that it would be more beneficial for me to just claim the 45p per mile when doing business miles, so my current car is paid for by me personally (any depreciation comes out of my pocket) and fuel, maintenance is paid for by me.


I know the age old saying of "just go ask your accountant" but just like any other profession there are ones who are clued up and ones that are not, i seem to be the one who is bringing up questions as to the methodology of things when it comes to this area and hence why i am asking for advice here just so i can paint my own picture and bring him what i have found and for him to clarify if it would be a good idea for me to do XYZ or not.


I only just found out that you can claim the full cost of an electric car as a tax deduction in the year that it is bought. so would i be right in saying that if i bought a £30k fully electric car outright with my company that i would be able to deduct £5.7k off my corporation tax which essentially would net the car at £24k.


and because the car would also be used for personal use then i wouldnt be able to claim any VAT off it, which was to be expected.


so with this £24k car i would also be paying £0 (personally) in 2020/2021 to have the benefit of driving it for both work and personal use, i would just pay for my own electric usage? not too sure on maintenance and insurance costs though?


it seems like a no-brainer at the moment because electric car prices will be holding pretty well due to the decline of diesel/petrol and hence the only thing that the company would lose out on would be the depreciation of the vehicle which after 3 years say it is worth £18-20k then it has only cost the company £4-6k for 3 years of vehicle ownership and personally saved myself alot more than that.


is anybody able to clarify if i am getting any of this correct? Thanks :beer:
↧

Employee sign on bonus - Paying back plus tax

September 25, 2019, 7:47 am
$
0
0
Hello all

I started a new job earlier this year and received a few thousand pounds as a sign on bonus. I signed a contract to say that I would have to pay back a proportional amount if I left within two years. The bonus came with my first months pay and was subject to tax.

A few months on and I’m moving on, and as agreed I will pay back a proportional amount of the bonus. As expected, I have to pay back the gross amount. This would normally be deducted from the final salary payment, but the payroll was processed without this deduction. I’m happy to pay it back immediately via bank transfer, but I’d like to reclaim the proportional tax I had to pay.

When I come to do my self assessment tax return, how will I be able to prove I have repaid the proportional (gross) amount?
↧

HMRC amend address

September 25, 2019, 8:20 am
$
0
0
Does anyone know how to change your HMRC business address details? The online system is just going around in circles.

Thanks in advance.
↧
↧

Class 2 NICs shortfall

September 25, 2019, 9:03 am
$
0
0
If you start a business in the middle of the tax year, perhaps it is not worth paying voluntary class 2 NICs as you won't get a full year's contributions... but is it possible to top this up to a full year's contributions by paying, say, class 3 NICs for the missing weeks? If it's not possible to top up then obviously it's not worth paying the voluntary class 2 in the first place I suppose. Advice appreciated thank you.
↧

What should he be paying?

September 25, 2019, 9:45 am
$
0
0
I earn more than my friend but he is paying just under the same amount as tax as me.

He is paid via an agency 9.75 an hour. He works 40 hours per week. How much tax and national insurance should he be paying? We both thought you are allowed to earn 11,000 odd tax free before they start taxing you etc? Is there anyone that could tell me how much he should earn after tax and national insurance please?

Thanks.
↧

Trust Owned House - Is Capital Gains Tax Payable When Sold?

September 25, 2019, 11:47 am
$
0
0
The house we're living in is owned by a family Trust. We're allowed to sell this one and use the money to buy another house in different area. We think capital gains tax is payable on the sold price. Does anyone know how much that would be? And if the money is to be used for another similarly priced home, do we definitely have to pay capital gains tax?
↧
Search

Tax advice for 17 year old please

September 25, 2019, 12:19 pm
$
0
0
Apologies I think posted in the wrong place earlier.

Need some advice.

my 17 year old daùghter works for a well known supermarket. its her 3rd month. her contractual hours are 14 hours per week. she is a college student. according to her pay slip she has been deducted £126 for tax. £0 For NI.

this month she got her normal salary of £511, plus overtime, her total payment should be £633, but with tax deduction she only got £501. they pay monthly.

I thought if you earn under the tax threshold you are not taxed. she also got taxed in her first 2 pay checks but they seemed to balance out what she was paid. I thought they paid her more to be able to tax her but she ended up with what we thought she was supposed to.

sorry we are quite inexperienced. just want to know the law before she speaks to her manager

any advice would be appreciated. thank you
↧
↧

Tax on foreign earnings

September 25, 2019, 12:20 pm
$
0
0
Is someone able to explain how to declare income in the UK when the income is already declared in another EU country and the relevant tax also paid in the EU country?
↧

Can I claim for meals?

September 25, 2019, 12:40 pm
$
0
0
Hi

I am PAYE Fully employed and do a 37 hour week. I work form a van all day and have heard a lot of people in my company claiming tax relief or expenses for lunch just on a normal 7am-3pm working day. This seems wrong to me and I don't want to try and do it until I know the rules.

Does anyone know if I can claim for meals?

Thank you
↧

Auction Company sold my commercial property at a price including VAT?

September 25, 2019, 3:53 pm
$
0
0
Hi.

I have a bit of an issue here, and was hoping to get some help.

I have a commercial property which has been with an auction company for quite some time.

A month ago, a received a call from the auction company. I was told that an offer came in at £40,000, not at auction. I accepted it.

Come this week, I've been told for the first time that the client was under the impression that £40,000 was inclusive of VAT.

I am VAT registered. The Auction Pack clearly states that the purchase will be subject to VAT.

I received an e-mail chain showing the general manager of the auction company had told the client that the offer of £40,000 INCLUDING VAT was accepted.

My lawyer is advising me to revoke my option to tax. My issues are:

This is not my fault. I didn't agree to £40,000 including VAT, and the auction pack clearly states the final purchase price is subject to VAT.

Revoking my option to tax will mean that I cannot claim VAT on the auction house fees, and the lawyer fees, which will cost me at least £500.



Is the auction house not liable to pay me money lost? What would be my options here?

My lawyer doesn't seem to be helpful. He seems to be a bit of a pushover...
↧

Council Tax cost

September 26, 2019, 3:35 am
$
0
0
Hi I have just moved house, I was paying my council tax monthly in my old house of 140 pounds a month 1400 for the year.

My new house is 1400 for the year also but the council are telling me i need to pay 211 per month for the next 4 months totaling £844 im a bit confused by this i would have expected that the previous owners payments would have been deducted from the years amount with the remainder remaining to be paid by myself otherwise 211 for the total 10 months is way above the 1400 year cost. Any advice would be appreciated.

Thanks Debbie
↧
↧

Mobile software development - legitimately expending devices?

September 26, 2019, 6:32 am
$
0
0
Hi, mobile software developer here. Full-time working with having some paid projects on a side as a sole trader.


Seen some threads about putting iPhones on expense, which were debating if it's a necessity for business.

But in my case I literally use iPhones to develop and test my projects, and every year there are new devices to do that on.

Can I legitimately put a phone on expense once a year in my case? Any tips how it should be put - just as an expense, a capital purchase?
Also, is it possible to put it not as a full-price purchase, but a 0% payment plan Apple provides? Thanks for any tips.
↧

Umbrella company tax/loan sham

September 27, 2019, 2:34 am
$
0
0
I used to do work and used this simply paid umbrella company, wasn't entirely sure what the whole thing was but we got paperwork (if I can find it) that stated we do the work and guarantee your pay any mistakes is on us.

It is one of these you get paid via a loan set up but I never saw the benefits in all honesty as you lost close to 20% of your income anyway?

So basically I was paid by the company I was working for into this simply unmbrella lot and then they paid me by means of a load or something? All a bit messy.

Anyway I did 3 lots of work and opted to use a normal ltd company set up.

Yesterday I get an email stating I will be liable for tax unless I pay this other company (CPS OIM).

So I am now trying to fathom out what the hell is going on and how this other company has all my personal details? Why they are asking for money from me and why are they asking for it when I was told this would never happen?

Its not a huge amount of income, as after I realised this was actually a scam and I was a massive 2% better off, I stopped using them!
↧
Search

UK tax when resident in Australia

September 27, 2019, 4:39 am
$
0
0
I'm trying to get my head around the UK tax I will need to pay whilst living and working in Australia for the next few years.

I'll be living and working in Australia so paying Australian income tax on my Australian income. If that is less income tax than I would pay if I had earned that money in the UK do I then need to pay the extra tax in the UK? To make things more complicated I am currently under the Scottish income tax regime.
↧

Over or Under 100k

September 27, 2019, 9:02 am
$
0
0
Hi all,

Not sure if this is the right forum (it's more a making sure I don't underpay or claim what I shouldn't type post)

Through good fortune (a recent significant pay rise), I may end up going slightly over the £100k mark. (next financial year will definitely be the case).

My current salary (april - Sep) was £77443.07 (Basic).

Per annum

I get a bonus of 8% of my salary (the multiplier of this amount can change dependent on how the company does from 0.8 x 8% (making it 6.4%) to 2 x 8% (making it 16%). The last financial year gone it was 1.4 x 8% (making it 11.2% of my salary)

From next month, my salary will jump up by 5% plus I get a £7800 car allowance p/a. My bonus multiplier will also go up to 15% of my new salary - Also, as a one off I get a $2250 (roughly £1600-1800 gross depending on exchange rate) as a long term incentive bonus. - So next financial year, presuming the "multiplier on the 15% of my salary as bonus doesn't change, the result will be

Basic - £81315.22
Bonus - £12197.28
Ltip - £1600
Car Allowance - £7800

Total would be £102,912.50

However - Because it is this financial year, it is prorata as my benefits will effectively start from Oct pay day onwards.

This financial year

Basic - £79,379.15
Bonus - £9196.36 (half bonus is 8% of old salary, other half 15% of new salary)
Ltip - £1600
Car Allowance - £3900 (from october to March)

Total - £94,075.51

Now here is the first dilemma (which compounds the second one).

I also have a property which I rent out, which for all intents and purposes, is a money pit and making a net loss every year. I do this through the Self Assessment Gov site.

For the financial year 2018-2019, my "profit" would be £7475, but my loses would be £7359. (taking into account 50% mortgage relief, insurances, maintenance etc etc). So would be paying tax on £116.00.

My question is this.

Will my earnings this year be

So my question is, will my earnings for this financial be

£94,075.51 - Total Earning from Work
£116 - Earning from Property

or

£94,075.51 - Total Earning from Work
£7475 - Earning from Property

If it is the later, then I will know my position for the 2nd item - Tax Free Childcare & 30 hours funded childcare.

If it is the former, I can continue to claim till March 2020 for both the above.
If it is the later, I cannot and I suspect I might be liable for anything since April till now (which I would have had no way of knowing) - If it is the case, I have no issue paying whatever benefit I got from this (e.g 20% TFC relief) or the other 15 hours (first 15 hours are standard) claimed (which only started this month).

Kindly advise, I hope all the above makes sense.

Thank you.
↧
↧

When do I have to pay council tax?

September 27, 2019, 9:03 am
$
0
0
Hi please help.

I work and live abroad mainly but am coming back to stay with the GF for a few weeks and this may happen two or three times over the year. I do not know how long I will be at hers due to working offshore and waiting on contract start dates.

She pays single persons discounted council tax. When do I need to inform the council I am here? or can I treat it like a long term hotel? what's the correct legal way please?
↧

IHT question

September 27, 2019, 9:39 pm
$
0
0
I have UK assets registered in my own name worth around £700,000 mainly tied up in buy to let property.

My wife has UK assets registered in her own name worth about £100,000.

We also own our own home as joint tenants. This property is worth around £200,000.

I guess this means that my estate is worth around £800,000 and my wife's estate is worth around £200,000.

Ultimately we want to pass our assets to our children when we pass away.

For IHT purposes would it be best to make our UK Wills so that my wife and I leave each other our assets when we pass away?

If we did this would it mean the surviving spouse would be able to pass on up to £950,000 (this this financial year) free of IHT upon their death?

I was originally planning to just leave my estate directly to my children but since my IHT nil rate band is only £450,000 would that mean the additional £350,000 would be taxed at 40% for IHT purposes?

Thoughts?
↧

Claiming mileage relief

September 28, 2019, 4:57 am
$
0
0
Good afternoon, I've tried calling the HMRC but answer phone hung up on me twice. My employer have paid me 25p a mile for using my own car for the first 10,000 business miles use. I am aware I can claim back the additional 20p for the first 10,000 miles through HMRC. I have tried applying this in my self assessment return by putting in the £2,000 as a business expensive but it is only giving me 40% of this amount as a relief, rather than the full amount.

Just wondering if anyone know, what I'm doing wrong?

Many thanks,

Sam
↧
Viewing all 10212 articles
Browse latest View live
Search