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HMRC over allocated marriage allowance resulting in underpaid tac
I have been receiving the transfer of my wife's personal allowance under the marriage allowance scheme for several years now with no issue. However I retired in August 2024 and received a P800 for tax year 2023-2024 stating I owed £518 in under paid tax, explanation -Marriage Allowance You were given more Marriage…
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Tax Code reduction upon retiring?
I retired mid-June this year as a basic rate (20%) tax payer with the default code 1257L, £12,570 personal tax allowance. I claimed a modest work pension from the next day. Having worked only 2.5 months of this tax year, I had expected that most of that annual allowance would be available for my small pension, meaning…
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Cgt on rentals
hi all 1- I have 2 rental properties, 1 in joint names with my wife and 1 in my name 2- would I have to put her on the mortgage? to be able to split the cgt or is there a easier way to do this, as she’s over 70 and they might not except her. Could we just start her declaring as getting 50% of the rental and when the time…
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Paying tax after self assessment calculation
When paying additional tax after self assessment direct to HMRC can you pay a small initial amount just to check the acount details have been entered correctly. That way if there's an error, it's only a small amount. Then send the balance owed. I normally do this for any new BACS payment for my own peace of mind and…
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Gifts in consideration of marriage
According to the HMRC Inheritance Tax Manual, the gift must be made ‘on or shortly before a marriage’. See https://www.gov.uk/hmrc-internal-manuals/inheritance-tax-manual/ihtm14191 What qualifies as ‘shortly before’? Our daughter is getting married in November and she could really do with these funds now. Is this allowable…
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Taking extra pension to allow gifting from income
I am 74. I have DB pensions that together with the State pension total about 42k. I also have a SIPP which I have taken the 25% tax free cash from already. I am debating taking a monthly, large amount from the SIPP (as income) to allow me to gift it to my children as gifts from excess income - so free of IHT. The main…
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How long do tax code changes take?
About 2 weeks ago I updated my 2025/26 interest in my HMRC account as it was £700 more than the previous year and I would prefer to spread the tax over more of the year instead of the last few months as normally happens. I'm just curious as to how long it takes them to update your tax code? You would have thought, in this…
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Emergency Tax
I am 60 and was made redundant in December 2025. I used my redundancy plus I activated two small final salary pensions and took a tax free lump sum plus £10,000 from a third (defined contribution) pension so I could pay off my mortgage with all the tax free lump sums combined. I activated these at the end of April (in new…
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HMRC and the starting rate of tax confusion
starting rate conundrum: for 25/56 Tax year. My annual work pension is £7135. No state pension. I have savings with interest of £9800p/a. My GoSimpleTax software tells me I have no Tax to pay. MSE says I have no tax to pay. ChatGPT and Gemini say I have no tax to pay. But HMRC are not sure and have started to tax me and in…
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Company Car Salary Sacrifice Scheme
Hi, I am considering joining my company car sacrifice scheme but am a little confused about the value of it to me as higher rate tax payer. I have been hit the last couple of years on tax as my salary with bonus and car allowance has hit around £115k (I’m not complaining as I believe that if you earn it you have to pay…
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Personal Allowance and Pension Tax Calculator
Hi! My salary is currently £100,000 and I have the potential to earn ~25% bonus annually, paid out in March. This is variable depending on performance / business results but is typically around £25,000. I completed a self-assessment for 2021/2022 in December 2022 and had an overpayment of £2800 which I'm repaying over 12…
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Strange taxcode increase for pension and giftaid relief
As a retiree paying tax at basic rate, I give some giftaid and make a small SIPP contribution each year to avoid going into higher rate band. I just got a new taxcode on my main pension that increases the net monthly payment by £250pm - i.e. it will decrease the tax paid by about £2500 over the rest of the year. This makes…
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Fiscal drag and trying to reduce tax liability
70 years old - looking at 25/26 Tax Pension income (including SP) = £53220 Untaxed savings interest = £3600 Annual charity contributions (Gift Aid) £600 a) Am I able to pay into a new pension scheme in order to get back down to Basic rate taxpayer status? If so, how much? Or b). How much would I have to GiftAid to Charity…
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Retrospective Marriage Allowance
My wife (non-tax-payer) recently completed a MATCF to gift her marriage allowance to me, not just for 2026-27 but also for retrospective tax years including 2025-26. The MATCF is still pending and her tax calculation for 2025-26 has just been processed (it would not have been impacted had the marriage allowance been gifted…
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Income tax on Ebay sales
Just seeing how much work I need to do. If I sell something for 9.79, my Ebay fees are 1.56 Net is 8.23, expenses are 1.56 So tax = 8.23 * 20% = 1.65 — So Ebay pay me 8.23, so just for sales all I have to do is pay 20% of what Ebay pays me? Because the expenses have been removed at source? Before the 20% tax total is found…
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Self assessment tax payable calculation
Not done yet but after completing the self assessment return on line, when/how do you know how much tax extra tax has to be paid in addition to what has already paid via PAYE? I've been tlld that if a tax accountant used, will calculate the amount of under payment and how it can be paid to HMRC. Just wondering how it works…
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Should The Government Revert to Tax Deducted at Source?
I'm only thinking about being placed on Self Assessment because of bank interest above 10k. On face value one would take it that whatever information was provided by the taxpayer would be accepted by HMRC, but I think that is highly unlikely indeed. I can't imagine that if I only reported 11k of 16k interest HMRC would…
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Rules on record keeping
is it acceptable now to only keep digital records of receipts, tax returns etc. or do you have to keep the paper versions?
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CGT - payable from when in these circumstance?
I’m trying to figure out if CGT is likely due on an upcoming inherited property sale (and if so, from when). Originally we (two beneficiaries) thought we’d be liable for CGT covering the 10 years we’ve been on the deeds as named/joint owners. However, querying ChatGPT it suggests we may only be liable from the point of…
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Your PAYE Income Tax estimate
I'm about to write to HMRC for the fourth time about tax issues from TY 22/23 onwards for both myself & wife. Whilst double checking our Gateway accounts I noticed that both specify…. 'We're updating your income tax estimate. It will be ready tomorrow.' Now, I'm thinking that if this is the case I should hold off writing…
