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Cutting Tax: Discussions that will help you
To help you find the Cutting Tax threads quicker and easier we're collating our previous sticky/pinned threads into one single post. Cutting Tax board: Tax instructions - please read Useful Websites TaxCalc alternative? How does the Taxman Know? Inheritance Tax Planning Useful Tools to Help With Taxes Washing Uniform at…
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Capital gains tax , but what about income tax - sale of second property
My brother and I own a house which is a second property ( neither of us live in it) for us both, and are selling it this summer ( so in the 24-25 tax year). We will be buying a cheaper property after paying off the mortgage. It is owned by us, not in a business or trust. We are currently working through the guidance in…
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HMRC Overstated Income Estimate
Here’s an interesting one. There are 93 days from 4 January to 5 April and £2,662.50 x 93 = £247,612.50. This cannot be a coincidence. However I cannot see why HMRC (or HL) would see a one off withdrawal as a potential daily income for the remainder of the tax year. I have advised them of the correct figure and they said…
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On higher rate pension tax relief but moving to new job. Will it transfer automatically?
Earlier this year I found I was eligible for higher rate tax relief on my pension as it is a "relief at source" pension. I called up HMRC and they arranged it and it's been reflected in my payslip. I move to a new job next month which is on higher pay. Should the pension setup also be relief at source, do I need to inform…
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Adjusted net income
Hi there, really grateful for some advice as I’ve been reading the guidance, articles, other peoples posts and spoke to an accountant and my head just wants to explode! I’m trying to see if / how we can get my husbands adjusted net income to below the £100k threshold in order to continue benefiting from tax free childcare…
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New Sole Trader tax
Hello, I am unemployed otherwise but started doing some e-commerce to try it out since late August 2023. Nothing massive, just experience right now. As I understand it I don't have to register as a sole trader till October of 2024. Is this accurate? If so, how does this work with April tax year? Would I just register any…
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Tax refund
In June 2022 a message flashed up on my screen saying that I might have paid too much tax and inviting me to apply for a refund. Having been assured I was owed about £1,250, I filled in the necessary forms and agreed to pay a percentage fee for making the claim. I then received a letter from HMRC saying that I had indeed…
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60% Tax Trap and Childcare Tax Traps
I wrote to my MP who in turn forwarded it to The Treasury and was answered by Nigel Huddlestone, financial secretary of the treasury. I asked them to explain the utterly bonkers and perverse withdrawal of the personal allowance between 100-125k that results in an effective tax rate of 60% and how this causes perverse…
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Capital Gains Tax
Hello there, We have a small holiday cottage in Yorkshire which we bought last year and have been using it solely for ourselves. We have decided we want to move to Yorkshire permanently, but will need a bigger property. Our main residence is in Suffolk. If we sell our main home and move into the cottage whilst we are…
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Higher Income Child Benefit Charge
I get my annual bonus each year in March. If next year I deferred it to April instead due to HICBC is that an issue with HMRC? Other than it being perhaps a bit immoral would there be any technical breach? I resent paying CB back given my children will hopefully be paying tax throughout their careers in the UK, anyway…
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Redundancy entered wrong - am I being overtaxed?
Asking this for a family member, so may need to return and clarify if I don't have all the answers but - Relative was made redundant last May. He has been on a non 1257L tax code for months and wasn't sure why. Eventually I showed him how to log I to online HMRC account and we can't make out what has happened. Employer…
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Capital Gains Tax easy question (hopefully!)
Hi. I invested £6,500 into a fund in 1999. It's now worth £16,500. What's the most I can sell of this fund (in 23/24) without having to pay any CGT? Thanks.
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Payment on Account
Can HMRC have you make a payment on account if they insist that you do simple assessment & refuse to accept a self assessment. I'm not there yet but it is getting closer every year.
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Self Assessment
I’ve had to register for self assessment this year due to receiving a decent amount of interest on my savings accounts. In the past I’ve always paid via PAYE and left it to HMRC to work out what I owe in relation to savings which have been lean pickings until fairly recently. HMRC have been changing my tax code throughout…
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Higher tax rate - is contributing towards my pension a good idea to lower it? Ltd Director
Hi Everyone, I am a one man band Ltd Director in construction. Since all my accounts are dead simple, I decided to stop using an accountant few years ago, and have been doing it myself since. No issues so far until this year. Now this year, since it is the first time I will fall into a Higher Tax rate on my Self…
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marriage allowence
My wife sent a claim form in for marriage allowance over a month a go and as no reply what do we need to do
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Sole trader and Capital Gains Tax
I am self employed and this tax year it looks like I will have a taxable profit of around £40,000. I have also sold a plot of agricultural land that will give me a capital gain of around £70,000. I would obviously like to pay as much tax as I can at the lower rate of 10% on the gain, rather than the 20% rate. What steps…
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Need help calculating how much to pay into pension to offset tax underpayment this year
Hi all, I'm getting myself in a bit of a muddle. Using various tax calculators it looks like I will end up with an underpayment in tax this year of about £3K, I think this is probably due to an incorrect tax code (last tax year I underestimated how much I would earn this year, so my tax code was set too low). This year my…
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Council tax banding
Apologies if this is in the wrong part of the forum. i have recently moved into a new build 2 bedroom end of terrace home and today received my first council tax bill and they have put me in band E. i believe this to be totally wrong, the property is 79sqm and the new semi detached round the corner the same size and layout…
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Error - Income Tax Calculator - Money Saving Expert - Pensions HMRC?
It looks like there is an error in the income tax calculator available on the money saving expert for the tax year 2023/2024 or 2024/2025. If you put income 140k+, then the relief Pension HMRC reduces to 0 (i.e. even if say £500 per month). It looks like an error as the all the supporting info says that if the relief up to…
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Tax relief on employee subsidising company car?
In my work I get a car allowance of £x but you can get a car for a higher monthly cost if you pay the excess out of your net pay. On the basis that I'm getting an Electric Car, with a low BIK rate, can I treat these extra payments as allowable expenses on my Self Assessment? I can't see the difference between a car…