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What counts as income for the purposes of the starting savings rate allowance?
I have a question about how the starting savings rate allowance is affected (or not) by different kinds of 'income'. My understanding is as follows. 1. If I am a basic rate taxpayer (20%), I can receive up to 1000 GBP in interest on savings each year (the personal savings allowance) without being taxed on it. Anything…
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Stopped self employment but still receiving MTD letters
Morning all , wife stopped self employment in Jan 2026 and filled in the online stoping self employment form on gov website but still receiving letters ref MTD .Appreciate it’s getting close that MTD starts for many soon but don’t want my wife to receive a penalty or similar for not notifying of change in circumstances .…
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Inheritance Tax Annual Exemption Question
Good evening. My mum and dad want to gift my sister a total of £4,500, which is more than the £3,000 annual exemption. Am I right that they both get £3,000 annual exemption, so technically have £6,000 they can gift between them (up to £3,000 each), without it falling into potential Inheritance Tax later down the line? (As…
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Wrong tax code overpayment
I have just looked at my March pension figure on my personal tax account which was posted today. Even though it is paid on the 28th of the month it is generally submitted to HMRC in the first week of each month. The tax deducted was way above what I expected so I contacted my pension provider who said my tax code had been…
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26/27 code
I have a DB pension in payment of around £3,300 a year. For the upcoming year, this has been given a code of K1119. I think this is about right, but was wondering how much of it will be taken in tax each month. It would appear to be most of it. That's fine, if it means I don't have to do simple assessments, but I thought…
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Potential rowback on tax on inherited SIPPs
From the Telegraph yesterday, Mike Warbuton on "It's finaly becoming clear how the new pension death tax could work": Very recently included in the Finance Bill is a clause which amends the current income tax rules to give relief to beneficiaries of a pension fund which has been caught for inheritance tax. The wording is…
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Capital gains tax generated to survive unemployment
I was unemployed for the totality of 2025 and to pay my bills, I had to sell-off some investments which generated capital gains. (to be paid before 2027) Are there exemptions for unemployed people in these circumstances? (unlikely?) Alternatively, are HMRC understanding/flexible when it comes to paying the owed tax, as…
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Inheritance tax interest
Hi all We'll be making our 2nd IHT instalment at the end of March. Then, hopefully by the end of April(ish) the house sale will go through and we'll be able to pay off the remaining £150kish. My question is about how the interest is applied. We'll be paying around £15k interest on top of the instalment amount in March,…
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Pensions & IHT from 2027
From 2027 the new rules on pensions will mean (on current numbers) a potentially large IHT bill. My drawdown fund is substantial so my question is: If I buy an annuity with a guarantee which potentially pays a lump sum upon my death, is that lump sum still classed as 'pension' or will it be classed as cash? The purpose of…
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24/25 tax year PAYE rebates - still outstanding?
Hello Wanted to know if anyone has received their P800 letter from HMRC for 24/25 tax year as a PAYE employee? The guidance online says they're usually sent out between June and November but for 23/24 they extended to March 2025. None of the options available to speak or chat with HMRC seem open to my circumstances, so if…
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Capital Gains & the annual exempt allowance
I know there are lots of threads about this already, but most get bogged down with incorrect opinions or misunderstandings. So, I thought it might be useful to attempt another one. Any single personal possession (ie. not something you purchased with the intention to sell on) that you sell for less than £6000 does not…
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Bonus Tax
I'm on a pretty low income, I earn 28k a year, I get an occasional bonus. My monthly take home pay is usually around £2200 this month I received a £500 bonus, and did £258 in overtime, yet I have only seen an extra £224 in my pay, so my take home was £2424 this month with no other deductions How is this even possible? My…
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HMRC self Assessment calculator said no tax: invoiced for late payment
I earned less than £1000 as a sole trader during 2024/25. I believe I used the official online calculator. All over it said I would not need to submit a return nor pay any tax. I was shocked to have just received a statement/late payment invoice for £100 and after some back and forth ( I was not rude but I must have…
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Should I Register as Self-Employed?
I'm a full time employee, just over the higher-rate threshold, and taxes are deducted using PAYE. However, I also run a website and sell digital downloads via a third-party. The income from this is about £1600 per year, so I know I need to declare this. However, there are a lot of costs involved which mean the profit is…
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How much to pay into SIPP
On my payslips my taxable pay includes a taxable private medical insurance benefit. When I am working out how much I can pay into my SIPP can I just calculate 80% of my total taxable pay or do I need to exclude the private medical insurance benefit amount? Payments into my work pension were by salary sacrifice.
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Paying myself from a business in a tax efficient way - HELP please!
I am one of four directors of a social enterprise (CIC) that has no employees. Three of us work for the business in a self-employed capacity and invoice the CIC for fees and expenses. We also work for other clients, not just the CIC. The CIC is limited by guarantee, not shares, so we do not take any money from it unless we…
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Using a deed of variation to reduce the amount of a previous gift
My mother and I have been considering a deed of variation on my father's will. Part of the reason for this is to enable my mother to help me out financially now rather than after her passing and of course if coming from my father, the amount would be not be subject to the 7 year rule - while the total value of the Estate…
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New Tax Code number 26/27
My last year code was 175L and the new year will be 124L. It tells me I will pay £150 more tax for the year. I'm confused as to the new code. I was expecting a way of seeing how they claimed the winter fuel allowance back but I'm thinking this shift is not it. The blurb on the website mentions "Minor company benefits, like…
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Expenses, self assessment and change in work circumstances with more time in the office
I am a contractor, use an umbrella company and complete a self assessment tax return. For the last 5 years I have predominantly worked from home, and when required on site I have claimed the expenses for this on my self assessment tax return. In all cases, the site was far enough away to require an overnight stay. I've…
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Vat thresholds - Clearing out stock .
A quick question about VAT thresholds . Since the start of the year I have turned over 30k which is alot higher than I normally do ( I try to stay at around 7k a month ) , mostly due to trying to clearout alot of my items which I have had either too long or overpaid on so is being sold at cost ( sometimes less ) . Every…
