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Cancel out Higher Rate Tax via Pension Contributions?
Hello all, I've joined up after following MSE for some time, in particular debt management and income tax! I'm in the very fortunate position where over the past 24 months my income has jumped. This year I entered the Higher Rate Tax Band and due to a pay rise in April, will be pushed ever higher - admittedly a nice luxury…
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Tax over £50'270
Hi, I am in a job where I was being paid 35k but found another job and my current employer offered me 50k to stay along with a 5k per year rise for a further 3 yrs taking my salary to 65k and 5k basic fuel allowance so I am currently on 55k. I know that I'll be paying 40% tax over the £50,270. I read that I can save on tax…
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Low income savings interest being removed from personal allowance
I’m a bit confused last November HMRC amended my tax code but can’t get through to them to query it! Only realised last week. I was on the normal personal allowance but HMRC have said I’ll get £1700 interest 23/24 and taken that off my personal allowance to lower it to just over £10700 I earn £10300 but can’t understand…
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Shared partnership - percentage question
Hello, My wife & I are shared lives carers. It’s very similar to fostering, but instead of children, it’s vulnerable adults. Every year, we do a self assessment as a partnership and do it as 50% share each. This year, due to various reasons, if I stated my share was 80% and hers 20%, we would save some money. truth be…
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IHT / transfer to children from surviving spouse
Hello, any thoughts would be gratefully received My father is a surviving spouse and inherited 100% of mothers assets. He has a £650k nil rate band. His total assets are below this level. In his Will he will leave all his assets to his 2 children. If he gifted to his 2 children e.g. £100k cash each now, and did not survive…
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Will I still be able to benefit from my wife transferring 10% of her tax allowance to me
For several years now I have benefited from my wife transferring 10% of her Personal allowance. to me. Therefore, her personal allowance is £12,570 minus £1260 which is £11,310. From April her state pension rises to £9,408 which still leaves a difference of £1902 (£11,310 minus £9,408) However.....Her small private pension…
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Take Home Salary
Hello, Can anyone assist with how much tax i've paid please ? Annual basic salary £68508. Received a £13050 bonus (Split in 2 instalments) & sold holiday back to company for £1317. Started paying into pension again at start of December (4% of salary every 4 weeks £210.79 which works out £228 per month & 5% of salary…
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Tax Code Confusion - Benefit in Kind Medical Insurance Tax
Hi All, I am looking for as much advice and signposting as possible. I currently earn circa £65,200 with a tax code of 1120L. I have now received information from HMRC that my tax code next year will be 1074L meaning I am paying more tax. When looking at my deductions it shows I have deductions of £911 per year for Medical…
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US Sharesave Scheme - CGT for separating couples
Hi all, I am separating from my husband and currently working on the financial settlement. We have approximately £36,000 in shares from an employee Sharesave scheme in my name. It is a UK employer, but the shares are in the US parent company. No dispute from me that we share this half and half. The gain on these is about…
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Capital Gains Tax
Hi please help, we are in a very awkward position! We own a third of our house, another third own by Mother in Law (who does not live with us) and final third owned by aunty. Aunty has passed, and left her share of the house to her direct family. Direct family have asked if we would like to buy the third, however due to…
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Marriage tax allowance
Someone told me today I was on the wrong tax code so I called hmrc who told me I was on the marriage tax allowance code I explained my husband hasn't worked for 5 years due to a stroke and claims pip so I shouldn't be on that code. He said he'll change it for this April but said i can't get a rebate for the last 5 years as…
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Gift Aid confusion re: tax help please
I've read but I still don't get it, sorry. I am currently (privileged enoguh to be) a higher rate (45%) tax payer but may not be for much longer. I made a promise to myself to give £12k to charity, and that is exactly what I intend to do. However, I understand I will have some tax relief so want to do it while I'm this…
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Tax code change following self Ssessment (PAYE)
I'm PAYE but have had to complete a S/A this year for the first time due to breaching the CHB high income threshold & I'm also now in receipt of a small amount of rental income. Due to the amount I owed I opted to pay the tax amount via my PAYE. I've now recieved my tax code letter for 24/25 and am confused by the…
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Miscalculated Tax 2020/21
During the 2020/21 I was working overseas and was not a UK tax resident (P85 submitted to HMRC). Whilst overseas I was working for a subsidiary of the UK based company I was working for whilst a UK tax resident. Although resident in Australia I was being paid through the UK company in GBP until 30th June 2021 and so income…
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CGT on sale of Rental property
I've just sold a property that I've owned for 20 years. Fully aware of the need to pay CGT on the profit, but I have a question re. offsetting. I have the invoice from 2004 for the purchase, and so have all the figures to hand. However - the property had some building work and improvements made to make it habitable. I…
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Help! Tax Relief on Repairs/Maintenance (Rental)?
Hi All, I'm sure it's probably a basic question but I can't find the answer easily. I have a rather large repair bill coming up on my rental property. I know repairs are fully tax deductible, but what does that actually mean? Will my tax owed reduce by the full repair bill? Example: Rental income = 10,000 per year. Tax…
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IHT / Capital Gains
Hi all, Short and sweet question and I hope someone can help advise. I am inheriting a quarter of my late grandmothers property. The house has been valued at £500,000. The other quarters will be shared amongst three other grandchildren (4 in total including me). We had probate granted in 2019 and IHT was shown as NIL…
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Redundancy in self assessment
I was made redundant this tax year, and I am wondering how to report it in the self assessment so the correct tax is charged. I have a mistake in my P45, and the employer suggested to use figures from the last payslip. I have a gross payment figure and a taxable one there. Taxable is 30k less then gross, which is correct.…
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Tax Bill from 2017/18 received
Looking for advice on a tax bill received please reached retirement age and pension paid from early 2017 but still worked in paid employment and paid my tax on my wages every week. in 2021 received a tax bill for over £500 for tax year 2017/18. phoned HMRC immediately about it, after a lengthy phone call I was told…
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NI UK working remotely in Ireland HMRC SA?
I've been working for 2 1/2 years as above and have been paid in Euros via payroll and Ireland PAYE. I pay social security and income tax in Ireland. Should i have filled in a UK HMRC SA? They've never asked for one & i haven't ever done one before as was UK PAYE for a short time. What will happen if i register for UK SA…