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Cutting tax

Archives for July 2021

Earning over 100k - pension vs debt
Hopefully this is the correct forum for this question. If you earn over 100k the general consensus is pay into a pension to bring down taxable earnings to under 100k to escape the '60% tax' trap where personal allowance is eroded. Now say if you had a car loan is it still recommended pay extra into a pension or is it worth…
Umbrella companies
Hiya - Sorry if I’m in the wrong place here. I use an umbrella company and recently the tax man has put my tax requirements up due to the benefits the umbrella company offers. Which to be fair they do - I could buy vouchers for shops I want to use with a 5% discount etc. (My agency will only let me use an approved list of…
First Time Company Owner
Hi everyone, After being made redundant earlier in the year I have an opportunity to start my own company and undertake 3 months of work (£30 to £40k) which is likely to be extended. I had assumed that I will be below the £85k VAT threshold and therefore I wasn't going to register for VAT. My question is that if I don't…
confused: VAT flat rate scheme
If I choose Flat rate scheme for a resturant, example if turnover is 200,000, but there are 100,000 are cold raw food and drinks which are not served in the shop, Do I have pay with FRS 200,000*12.5%? or 100,000(served in the shop)*12.5%? Thanks
Limited company dividend and tax
Hello, This is a bit of a mess so thanks in advance for taking the time to read and any help. I'm asking this on behalf of my dad. He recently dissolved a company (June 2021) which had ~75k in the bank (after corporation tax had been paid) and took it all as a dividend. The dividend was taken in January 2021. He is usually…
Company vehicle and fuelling
Hoping someone can help with this one. I have been with my employer for over 10 years and have a company vehicle (transit van), which I pay tax on for personal use, so far so good. My issue arises with the company supplied fuel card used to fuel the vehicle, basically whatever I spend on the card is deducted from my net…
Tax allowance repairs
I rent a flat out and will be replacing front door £950, would I be able to put it through Hmrc many thanks
Company Car - Personal Allowance
Hi I'm looking for some advice on my personal tax allowance please. I started a new job in January 2021 which included a company car, its my first company car and i'm still getting my head around the figures. The car has a list price of £21.395 & a BIK of 26%, Therefore the benefit equals £5562. I notice my personal tax…
Savings income?
Can someone explain what savings income is please ? Just received a letter saying I owe £277 tax , I work part time claim carers allowance and did cash in a small pension earlier this year but paid over £2k in tax on it .
Tax Code
I applied for the working from home tax break last year and received it without issue. When I applied this year once again allowed me other expenses worth £312 however they have also added you now get Adjustment to rate band worth £1,087. This has moved my tax band down from 1257L to 1179L so I am actually worse off. Can…
Council tax as a PhD student (moving before start date)
Hi, firstly sorry if this is in the wrong place. Me and my girlfriend start a PhD in September (officially our student ships start/first payment is October 1st) however we are moving into a flat on July 31st, now I’m pretty sure as students we would be exempt from council tax, but does that apply to the first two months of…
First time submitting capital gains/loss tax return online
I'm self-employed and submit my own tax return online through the HMRC website. Between 2020-2021 I bought and sold many stock shares online. Mostly US shares. I made a loss overall and I'm now submitting my tax return online and filling out the capital gains/loss area. There's a part called: If you are making any claims…
Marriage Allowance income calculation (pension impact?)
Does anyone know if private pension contributions make any difference to income calculations for the purposes of checking Marriage Allowance eligibility? I have some recollection that tax relief on personal pensions can make a difference to what is regarded by HMRC as taxable income, i.e. not just a case of income less…
Buying from China & now being taxed.
I noticed that buying from China "AliExpress" that i am now getting charged import tax on my invoices. They say its given to the UK tax office. Is there not a minimum amount before i should get charged. Sample hear: Goods, GBP ￡ 27.03GBP / P&P ￡ 14.15GBP / ￡ 0.00GBP / Tax ￡ 8.24GBP / Total￡ 49.42 Thanks .
Benefit in Kind vs Payrolling
You earn £40,000 salary. If your employer provides you with a company car as a benefit in kind (reported on a P11D) worth £12,000 can this make you a higher rate taxpayer as your total taxable amount is £40,000 + £12,000? How is it different to your employer payrolling the company car (adding the cash equivalent to your…
Working from home tax relief - earning under the annual tax-free personal allowance amount
Can this person get working from home tax relief: A person has a job that earns less than the annual tax-free personal allowance meaning that they don't pay tax on what they have earned. However, during the pandemic, the employer has asked them to work from home instead and as a result they have incurred extra costs for…
Do you get a tex free amount if your company retires you through ill health ?
I am likely to be ill health retired by my company shortly. Someone mentioned that the first £30,000 of any payment is tax free. I believe I will get 26 weeks play plus 12 weeks in lieu of notice. This is completely separate from anything to do with pensions. Is this correct? Many thanks
IHT and overpaid pension
I'm sorting out the IHT for my late sister (no children or spouse). She has had her private pension paid after her date of death as well as her old age pension and DLA so she owes money to all 3. I cannot find anywhere on the IHT forms to list these as they should be deducted from her bank balance at date of death to…
CGT & Private Residence Relief confusion
Hi, My father is moving from old home (lived in for 43 years) to retirement flat. He wants to keep the old home for a year to allow old possessions to be be sorted, house to be renovated/fixed, and ideally sell it in after a year of moving out. I understand we have 9 months grace period on selling main home to avoid CGT…
CGT - issue with low probate value
Hi, Hope someone can assist with a CGT/probate questions as HMRC are bouncing me between departments. I have inherited a 1/3 share of a residential property with the deceased having passed away in 2014. The property was/is still well under IHT thresholds and therefore a non-ascertained estimate valuation was submitted…

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MSE News

Ofgem proposes new 'no standing charge' Price Cap – but Martin Lewis warns vulnerable customers need to be opted in or it won't work
Ofgem has today launched detailed proposals for a major shake up to its Energy Price Cap that dictates the price over 80% of homes in England, Scotland and Wales pay for their energy bills.
Lloyds, Halifax and Bank of Scotland to cut overdraft rates for millions but hike them for others – here's what's happening and full help
If you're a Lloyds, Halifax or Bank of Scotland current account holder, the interest rate you're charged for using your overdraft could change soon as part of a fees shake-up. The Lloyds Banking Group, which owns all three brands, says millions of its customers will pay less after the changes – but a "few" will pay more.
Warm Home Discount expansion confirmed with millions more eligible for the £150 top-up this winter – here's what we know
Around 2.7 million more low-income households, including 900,000 families with children, will become eligible for the £150 Warm Home Discount this winter, as the Government has confirmed it will remove the existing 'hard to heat' eligibility criteria. The extension has only been confirmed for winter 2025/26, with further changes possible for future years.
Martin Lewis: At last a chance to fix Council Tax flaws impacting millions – debt collection, difficulty challenging your band, discounts and more
Major flaws in the Council Tax system in England could finally be fixed in future, as the Government has launched a wide-ranging consultation to review hideous debt collection practices, the difficulty of challenging your band, the overly complex and horribly-named Severe Mental Impairment discount and more. MoneySavingExpert.com founder Martin Lewis, who has long campaigned on these issues, shares his response and analysis.
Energy complaints to be dealt with more quickly and Energy Ombudsman to get new powers under Government plans
If you have a complaint about your energy firm, it may be resolved more quickly in future, as the Government has announced a raft of proposals to strengthen consumer protections in the energy market. The planned changes include giving the Energy Ombudsman new powers to force firms to comply with its decisions – but it's still very early days. Here's what we know so far.
Warm Home Discount expansion confirmed with millions more eligible for the £150 top-up this winter – here's what we know
Around 2.7 million more households, including 900,000 families with children, will become eligible for the £150 Warm Home Discount this winter, as the Government has confirmed it will remove the existing 'hard to heat' eligibility criteria. The extension has only been confirmed for winter 2025/26, with further changes possible for future years.
Base rate held at 4.25% – here's what it means and when it might be cut next
The Bank of England has held the base rate at 4.25%. Below we explain why, when it might be cut, plus what it means for your mortgage and savings.
Applied for South West Trains 'boundary fares' compensation? Act now to claim it
If you applied for compensation from South West Trains before the deadline in January 2025, you now need to provide your bank details to the claim administrator so it can be paid to you. Here's what you need to know.
Winter Fuel Payments to be reinstated for millions – Martin Lewis explains how it'll work, what it means and if it's an improvement
All State Pensioners in England and Wales will receive a Winter Fuel Payment this winter, though those who earn over £35,000 will see it clawed back through the tax system. It means nine million pensioners will get the £200 or £300 top-up. Here MoneySavingExpert.com founder Martin Lewis shares his instant response and analysis, and we include answers to your key questions.

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Cutting tax

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