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Limited company or sole trader for £20k annual profits ?
I work as an employee and get close to £100,000 from my salary. Plan to use some of my free time doing extra work as a self employed person but realistically this will amount to about £10,000. My question is will it be more tax efficient to: 1. Be a sole trader and just pay 40% tax on all profit (ouch) Or 2. Form a limited…
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HMRC issued wrong tax codes and now big tax bill needs to be paid in Jan 2018
Hi I've just done my self-assessment and discovered I've underpaid tax by a large amount. After doing some digging around, it looks like HMRC issued the wrong tax code to my employer and issued the correct tax code to my previous employer who I left years ago. I'm not disputing the tax is owed and I know people will say…
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Tax relief on vehicle mileage
Hello, I’m going to be starting work as a pizza delivery driver for a well-known chain; this will be a part time/evening second job working 20 hours per week @ £7.05 (my nmw for my age) for me so my tax on this will be 20%. I will be using my own car, with them paying me .90p (tax free) per delivery and I should average 4…
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Self assessment: underpaid tax from PAYE employment
Hi I've just done a self-assessment online and the calculation shows that I underpaid my tax by a huge amount. All my income came from PAYE employment and the underpayment is because not enough tax was collected during the year by my employer, who I've now left. They basically only paid 50% of the tax due. It's a big…
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£2500 before needing to do tax self-assessment?
I'm employed full time and receive my salary as PAYE as a higher-rate tax payer. Thinking about doing some extra work, separate from my full-time job, and my clients usually issue cheques for my work. Let's say I will get £10,000/year doing this I had thought about setting up a limited company to reduce tax via dividends,…
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Sole Trader Profit
Good evening, hope you're all well. Cut a long story short - I am in a process of starting out as a self employed online retailer. It might be relevant to the post that I am already in full time employment, earning a salary of £32880, therefore paying TAX & NI. This will remain unchanged as I intend to "trade" in my spare…
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Moving abroad permanently: P85 form
I am moving abroad permanently after 3 months. I am unemployed in UK from last 2 years, so I don't have anything to claim from HMRC. Do I still need to fill P85 form, even if I am unemployed? P85 form asks my foreign address. I will be staying in hotel for first few weeks before finding a permanent place. What shall I…
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Company car tax - How can this be legal ?
Hi all, Just hoping someonelse has experienced this and can put me out of my misery. After talking to people for over 3 hours at HMRC I think I understand - but when I spell it back to them I get a politicians answer... Essentially I recently started a new job in November with a company car. They h e done a 'in year'…
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Severance Pay
Hi. Wonder if someone can give a bit of tax advice. I will be taking a severance package in January or February next year. My earnings for the 2017/18 tax year are about £100k. The severance pay is in the region of £120k. I am inclined to ask for the severance pay to be deferred to the 2018/19 tax year in order that I do…
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Could I have earned more by saving less (under £1000)?
In 16-17 I earned £1100 gross from bank interest. In my self assessment calculation this is reflected as first £500 tax free with the remaining £600 taxed at 40%, so £240 as tax to HMRC and £860 net for me. When this rule came out I remember there was much debate on interpretation, hopefully it is crystal clear now. If my…
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Bank transfer from abroad
Hi, Hope you can offer advice. Similar questions have been asked, but I couldn't find any recent threads with relevant information. I am planning to sell my property in my home country to help fund a home purchase in the UK. The amount I expect to transfer into my UK account is around £83K. I have spoken to my Bank (hsbc)…
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Declaration of trust (beneficial interest)
I bought a property in my own name in April 2011 and lived there for 3years and 5months before moving in with my girlfriend in August 2014. She owned her own house. I decided to rent my property out on a buy to let mortgage and I do so to this very day. We married in July 2015 and bought our own home through a joint…
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Income and CGT query
Hi My wife earns c £2000 PAYE since retiring. I took the married allowance as my pension is taxable. She has just been told she will be liable for CGT on the difference in IHT valuation and the sale price of a property I know there is the personal tax allowance and a CGT allowance. I'm trying to get my head round whether…
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Do I need to declare to HMRC the cheque they sent?
HMRC sent me a cheque as an adjustment for overpaid taxes in 16-17. Do I need to state this in my 16-17 Self Assessment or is it unnecessary as they already have it in their records? The notes for the tax offset section seem to suggest I need not as I have received it before filing my initial self assessment whereas I…
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Paying tax by credit card to be banned
The Telegraph report that over 800,000 people paid their tax bills by credit card in 2015/16. As you probably know HMRC charges a small fee to those customers to "cover the costs imposed by credit card companies and their merchant acquirer for processing these payments.". However, from 13 January 2018 HMRC is going to stop…
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Not sure if right page, help with customs charges from royal mail
Hello. As stated sorry if on wrong page, if so please advise where I should move this too. Anyway, I am a UK Citizen who lives in the UK, I purchased a new mobile phone from carphone warehouse (worth £200) and I still have the receipt to prove this. I then went to the USA on holiday but accidently left my phone with a…
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is pers allowance pro-rated?
Please help. I've worked 8 months of the tax year on a contract role. Now I've got my P45, I know earnings and how much tax I've paid. I want to reclaim the overpayment but the helpline just said the personal allowance is pro-rated based on the 8months I've worked and I can't claim earnings v's annual allowance. Is this…
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Outstanding Tax (IT Contractor)
Hello, About 2 years ago I was out of work and got offered a Job as an IT Contractor. I used a company to set it all up and had an accountant etc. things didn't end well, the service I was provided wasn't very good and after 6 months I ended up getting a full job job back on payroll and never paid the tax on what I owed…
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Self Assessment Tax Outstanding
Can anyone tell me if after completing your SA tax return and you owe tax and you opt to pay the O/S balance through PAYE, do you still have to pay any balance O/S by 31/1/18 for the tax year 2016/17? I am confused why they are chasing me up for payment by 31/1/18 when as I said instalments of £70 per month are being…
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Self Assessment and Dividend Payments
When completing last years self assessment I can't see anywhere to declare dividends that have been paid net of tax or the tax already paid on them. I don't want to add the amount on to other dividends that were paid gross. In fact I want to claim the tax back as my total dividends received was less than the £5,000…
