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  • FIRST POST
    • Tiptop79
    • By Tiptop79 3rd Jan 18, 9:05 PM
    • 4Posts
    • 2Thanks
    Tiptop79
    Paye Employee - who can advise me on my tax?
    • #1
    • 3rd Jan 18, 9:05 PM
    Paye Employee - who can advise me on my tax? 3rd Jan 18 at 9:05 PM
    Hi All,

    I have scanned through this section and can't seem to find the answer so I'm hoping someone can point me in the right direction. I am a PAYE employee and in a short space of time (3 years) I have managed to go from £35k basic + 25% (this 25% can be taken as cash or benefits including pension) to £69K + 25% plus bonus on top (I predict this will put me on £100k by April). I have got rid of my company car, thinking this would save me money but I haven't noticed any difference. I am now on a K Tax code as the tax office believe they have been shortchanged and need to take £700 from me a month until April to make up for it.

    I did think earning this amount of money would mean a bigger increase in my take-home pay but unfortunately, it hasn't made a huge difference at all so I need to understand where I am going wrong. When I got my pay rise, I immediately invested in the sharesave scheme (£500 per month) as I figured I didn't really need that extra income. I am approximately £600 per month better off in the months I don't take home a bonus (£1100 if you include the £500 I invest in shares) That extra £600 now goes towards my own car instead of the company and I can claim back the 45p per mile for using it, so apart from the £500 into my shares I'm really not much better off apart from the fact I have a car of my choice.

    I need to understand the pension thing and how much to put away to help my tax in a better way. I am only contributing approx £160 per month.

    Do I go to an IFA, an accountant, tax planner?? I literally have no clue where to turn to ensure I am doing the right thing.

    Thanks for reading my post, really appreciate a nudge in the right direction.
Page 1
    • Tiptop79
    • By Tiptop79 4th Jan 18, 5:21 PM
    • 4 Posts
    • 2 Thanks
    Tiptop79
    • #2
    • 4th Jan 18, 5:21 PM
    • #2
    • 4th Jan 18, 5:21 PM
    Thanks everyone for looking at the post, I can only assume no replies as people unsure. I am booked in with an IFA tomorrow so hopefully, he can shed some light on what I need to do.

    I will post back tomorrow in case anyone else needs to know this in the future.
    • 00ec25
    • By 00ec25 4th Jan 18, 6:44 PM
    • 5,774 Posts
    • 5,217 Thanks
    00ec25
    • #3
    • 4th Jan 18, 6:44 PM
    • #3
    • 4th Jan 18, 6:44 PM
    it will be very interesting to see if your IFA has any idea at all about the technicalities of some of the tax treatments you mention. Yes they know some tax, but would you see a doctor or a dentist if you have a tummy ache? Both start from the mouth but thereafter...

    chartered accountant or chartered tax adviser

    the reason no one has answered is probably because you have not given enough details to allow us to do so, eg:
    - explanation given on the coding notice for the K code?
    - qualifying share scheme?
    - 160 pm to what sort of pension?
    Last edited by 00ec25; 04-01-2018 at 6:47 PM.
    • burnsguitarman
    • By burnsguitarman 5th Jan 18, 7:29 AM
    • 715 Posts
    • 430 Thanks
    burnsguitarman
    • #4
    • 5th Jan 18, 7:29 AM
    • #4
    • 5th Jan 18, 7:29 AM
    it will be very interesting to see if your IFA has any idea at all about the technicalities of some of the tax treatments you mention. Yes they know some tax, but would you see a doctor or a dentist if you have a tummy ache? Both start from the mouth but thereafter...

    chartered accountant or chartered tax adviser

    the reason no one has answered is probably because you have not given enough details to allow us to do so, eg:
    - explanation given on the coding notice for the K code?
    - qualifying share scheme?
    - 160 pm to what sort of pension?
    Originally posted by 00ec25
    I imagine that the OP would have welcomed, the opportunity to give more information, and advice to seek a chartered tax advisor/accountant, prior to his IFA appointmemt. Unfortunately either no one read his post, or, like myself didn't know the answer. To criticise him for seeking advice from an IFA isn't really helpful! so why comment?
    • agrinnall
    • By agrinnall 5th Jan 18, 8:56 AM
    • 19,140 Posts
    • 14,821 Thanks
    agrinnall
    • #5
    • 5th Jan 18, 8:56 AM
    • #5
    • 5th Jan 18, 8:56 AM
    I imagine that the OP would have welcomed, the opportunity to give more information, and advice to seek a chartered tax advisor/accountant, prior to his IFA appointmemt. Unfortunately either no one read his post, or, like myself didn't know the answer. To criticise him for seeking advice from an IFA isn't really helpful! so why comment?
    Originally posted by burnsguitarman
    Given that the IFA appointment is today then the response from 00ec25 was indeed made in time. So the OP could now cancel that appointment and make one with a more appropriate professional, or go ahead with the appointment armed with the knowledge that they should not place full reliance on what they are told. I fail to see what is unhelpful about that.
    • Tiptop79
    • By Tiptop79 10th Jan 18, 7:50 AM
    • 4 Posts
    • 2 Thanks
    Tiptop79
    • #6
    • 10th Jan 18, 7:50 AM
    • #6
    • 10th Jan 18, 7:50 AM
    Hi All,

    Thanks for the responses. My meeting was at 10am the following day and I never received a notification to say anyone had responded either? It was only because I came back to update in case anyone else found themselves in this position, I realised there was some feedback.

    In any case, IFA was really helpful. Yes, he pointed me in the direction of an accountant to sort out my tax, as I am not claiming the rebate on pension yet. I also need to claim the difference between my mileage rate as I was only claiming basic 11p and am entitled to the 45p so will be the difference in that. Just because he is an IFA doesn't mean he didn't know more than I did and was very good to point these things out to me.

    He helped me with my pension, made sure they are in the right fund type for my risk profile and is writing to an old pension fund I have to get that transferred over to my work fund.

    All this advice was free, and I apologised if I had wasted his time but he said he didn't view it that way at all as I would likely return or refer business to him. He is absolutely right, and what was unexpected for me was an 8% pay rise I received on my return to work Monday which means I know have money to invest that I wasn't necessarily expecting.

    My K tax code arrived due to me being on a fixed basic salary but qtr bonus then bumping it up. HMRC haven't known what my income is so are just prediciting it will run every month at the qtr bonus figure.

    By the way....I'm a "she" :-)

    Thanks everyone and have a good day.
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