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Income tax understanding and 40% and D0 tax code
I have received a letter from my pension provider (HM Gov) with a possibility to switching my pension. In crunching the numbers I looked at my tax codes and income tax payments. 2021-22 - I underpaid income tax by £800 2022-23 - I underpaid income tax by £3.00 2023-24 - I overpaid income tax by £300 2024-2025 - Paying back…
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Minimising NI by varying take-home pay
If my gross pay is above the 40% tax threshold (60k) and I'm happy to take-home less than the 40% tax threshold, am I right in thinking that varying my pay (through pension salary sacrifice could minimise the amount on NI I pay - because NI is calculated for the period for which you pay tax, whereas a tax is an average…
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Tax returns - adjusted net income and HICBC
Trying to get my self-assessment tax return right. Any help appreciated with adjusted net income, please, as it's the bit I'm not sure on (despite reading HMRC guidance) and I want to get it right, especially as I suspect this year it will put me somewhere in the HICBC sliding scale range. I know my income from employment…
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House Flip Advice - Main family residence
Hi All, Six months ago, we sold our house for a significant amount of money and decided to move into a tiny home situated on a great plot/location. Our plan was always to build a large extension on this property. We've been living here for six months and are currently in the planning phase of the extension. Hopefully,…
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Gifts, Inheritance tax, 7 year rule, and whose money is it anyway?
Hi all, I hope someone can answer this, or point me in the direction of suitable reading material to help me find an answer. Apologies in advance that setting the scene for the question takes a while: My mother recently acted as the personal representative of a relative (let's call him "A") who died intestate. His wife…
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Private pension nominees versus wife
Hi I am new to the forum so apologies if this has been covered but I couldn’t find what I was looking for. I am an older woman about to marry my lovely man. The question I have is, he has a private pension and after his divorce he put his 2 children down as equal shares upon his death. Once we are married he has stated…
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SMI reduction
Hello,I have applied for SMI reduction with my local council, for my son who has severe autism.we usually pay our council tax by monthly instalments from April to January.I applied in November after seeing the Martin Lewis money show, and I was not aware of this until seeing the show. I have still not had a decision letter…
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Capital gain tax
I bought a house in 2003 and lived there until 2010. At that time, I purchased another house, moved into it, and rented out the first property. Two months ago, I bought a third property and am now considering selling my current home to move into the new one. In this case, would I need to pay capital gains tax on the sale…
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Personal Tax account
I recently received a P800 for 23/24, which said I owed tax for that year, due to a difference between actual and estimated BIK. It said I could pay the amount online, so I did that, and received confirmation email. I thought I'd check it was all up to date. Previously I'm sure after logging in, and then choosing PAYE,…
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Gift from elderly parent(s) and potential impact
My elderly mum/dad are about to gift me £20,000. I am one of three siblings who will ultimately inherit their estate when the sad but inevitable happens. I have no idea how much this will be, without factoring in potential future care needs. Maybe £500k including their property (as a figure) but never something I have…
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2nd Job - Scotland
I am looking to get a second job, I am in Higher tax band 42% in my main job, if i get second job my overall salary will be within band 42%, not planning to earn more than 10 to 12000 a year. Is tax on my second job will be 42%?
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Clever gifting out of excess income or not?
If… 1. I have £200k and I loan it to my kids over a five year period - £20k per year each and there are two kids.2. They earn £10k per year by putting it in ISA’s by the end of 5 years. 3. I can at any time get the money back if I need it for any reason. Although I haven’t gifted the money and it’s still in my estate I am…
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Company Car tax after handing back Company Car
Hi,I've had a company car which gave me a 566L code for the last 7 months.Handed back and I'm now on 844L. While I appreciate it's a slight increase in take home pay - I can't help but feel this is a bad deal. The 566L code knocked £130 off my take home wage, but the 844L code now costs me £80 on my take home wage for the…
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Discretionary Trust IHT
I read the following: "... discretionary trusts are subject to periodic charges every 10 years and exit charges when assets leave the trust. These charges are calculated based on the value of the trust assets exceeding the nil-rate band". The settlor died 13 years ago, and the trust is now valued at a mere £100,000. Is the…
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IHT Nil Rate Band
Wife died 2024 Tenants in Common I created a deed of variation gifting £320,000 plus her half of house, worth £215,000, from my wife's estate which was £400,000 plus her half of the house to our daughter.Probate granted. My estate cash/investments are £510,000 plus my half of house £215,000My will gifts everything to my…
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Gifts from Income-is this acceptable?
Trying to come up with a plan that would satisfy HMRC. Would this be acceptable? A person each tax year keeps a spreadsheet of Income and all Expenditure. This would be a summary of the ins/outs of their bank account as that would be everything. Then in Week 52 of tax year, any balance is gifted to dependents. Same in year…
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Handed back company car - tax code has been adjusted ... but not to what I expected?
I've been driving a company vehicle for many years now always paid the tax on it. This Saturday gone however I purchased my own car and physically handed back my company car Updated HMRC online and they adjusted my tax code from 318L to 985L - think I am being thick as I assumed it would revert back to 1257L ? Just phoned…
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Marriage tax allowance
I currently have the marriage tax allowance applied to my tax band. My current salary is about to go up to £47405 backdated to April 24, I recieve an annual bonus around £1000 not guaranteed but could be more or less. There is a small chance that my salary may increase to around £48500 again back dated to April. I…
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SMI Council Tax Reduction?
Hi All, I have a
slightly complex situation here and am after some advice. My husband has
been mentally impaired for years (Parkinson's Disease). Things have got so
difficult for us over the last year or two, as he's got worse both mentally and
physically, he went into a care home in November, which has meant a change…
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Self Assessment and Dividends
I have a few small share holdings that generate dividends. One of them is automatically reinvested in new shares. My understanding was that I should declare the dividend used to purchase the new shares (even though I never see the money) in the dividends section along with the dividends paid directly from the other…
