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Avoid 40% and what to do if that's not feasible
(Health Warning: many numbers ahead :smile: ) So I'm trying to prepare for the moment where the wife starts to get her SP and various company pensions. As things stand right now, the sum of all her tax-relevant incomings minus the allowances will be just below the higher rate threshold. We have a pretty good idea about her…
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Captail Gains on agricultural land
Hi, Ive recently been gifted farm land by my mother. Total value est. £400,000. After my father passed without a will. Meaning all was sorted through probate. Revoking my right to the estate so all could pass to my mother. If i was to sell some of this land. With sale value of roughly £150,000. Could i then in turn use…
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Income tax
Have a pension from a previous employment and a second income. Tax free allowance against my pension income. New income is being shown as the D0X tax code telling me I will pay 40% tax on all the second income. In total, both incomes only take me 18k over the £50,271 higher tax bracket. Contacted HMRC and they inform me it…
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PAYE v Self Assessment
Just want to get my head around how HMRC thinks…. I have my tax code for next year 25/26 a reduction from K2239 to K1239 so I take it from that that I will have more money in my pay each month. Very welcome. I started Self Assessment from 23/24. The new coding includes an estimate of taxable interest. This is less than the…
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HMRC two different assessments?
Hoping we might get some guidence with an issue. My husband is retired, gets state pension and has a private pension too. Online, his account states that he paid the correct amount of tax for 23/24 and doesn't owe anything. However he has had a letter stating that he owes just over £400 and this will be collected during…
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Tax code reduction
Hello, I'm a newbie here. I have received an email from HMRC saying that my tax code has been lowered. My circumstances have not changed, my job has not changed. I also owe around £100 due to the tax free amount being lowered. I contacted work about it but they redirected me to HMRC. I am not sure what I need to do. I'd…
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Higher rate income tax relief
With the freezing of personal tax allowances up to 2027/2028, I am concerned about breaching the Higher Rate tax threshold. If my earnings reach £51,270, I will pay 40% tax on £1,000, so I am looking at ways to mitigate this. I understand that my earnings will include any untaxed interest whether or not it is within my…
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Should I cancel Marriage Allowance
Hi, I think I am understanding how the allowance works, but before I cancel it could someone please just put my mind at rest? Several years ago, I was earning well under the yearly allowance so transferred the allowance to my husband who was earning much more. Now I am earning more than the yearly threshold (£12,570) so am…
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Voluntary self assessment or something else?
In 2020 I was required to complete self assessment and have continued ever since. After submitting last year I got a letter saying I no longer needed to. However as a higher rate tax payer I’d like to claim tax relief on my gift aid donations and business mileage. As well declare my savings interest. I like to get…
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HMRC say I have overpaid £3,500 in tax; I haven't. What is going on at HMRC?
I sent in an R40 in September to reclaim some tax on savings interest for 2023/2024 that was paid as part of an estate distribution to me as a beneficiary. The estate had paid the estate administration period tax on savings which was above the de minimis limit and so the estate distribution included net savings interest. I…
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Childcare salary sacrifice
Has anyone signed up to a childcare salary sacrifice scheme? I can’t find any information about this on MSE website. I’m told it could save my hundreds of £s a month on tax savings as childcare fees come straight out of my pre-tax salary. I’d save more than the “Tax Free Childcare” scheme. What are your thoughts/opinions?
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Help with updates to personal tax account
Hi all Couple of questions- I ended up in a bit of a mess with my tax due to an error by a previous employer, HMRC over-estimating my savings interest and under-estimating my salary due to having a gap in employment. Due to much investigating, calculating and detective work I’ve managed to report changes, fix the…
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Paye tax code has gone down last 2 years
Hi all, Posting on here for advice as frustrated trying to get to speak to tax office. The last 2 years my tax code has decreased, i guess to repay unpaid tax. I've been in same job over this period, no income from pensions, benefits or other jobs, less than £1k interest on savings so can't understand how i owe them money.…
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Marriage Allowance - Only in Civil Partnership since 2022
Hello Want to backdate the claim for Marriage Allowance. Have been non tax payer since 2020/21. We are in a Civil Partnership now, but only became 'Civily Partnered' in December 2022. How far back can I claim? Tax year: 20/21? 21/22? 22/23? 23/24?
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Understanding Child Benefit Charge
Hi, hoping someone can help me make sense of the Child Benefit Charge. I have 2 kids and have always received the child benefit which gets taken away again through a tax code adjustment for my husband's PAYE code as he earns about £60K. The code adjustment basically reduces his personal allowance. One is now an adult so I…
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HMRC refund and bank details
I claimed a tax refund last June, finally got the letter today agreeing I was owed money. Go to reclaim it online to be told that in doing so I would be supplying a third party with not just my basic bank details but also sharing my bank balance and direct debits. I have nothing to hide, but I refuse to supply those…
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Personal tax increase - confused?
Hi, I have had notification of a change of tax code from 98L to 50L (from April 2025) on my main private pension and been advised that I will pay about £103 more next year. (Two small ones have not changed BR). I am 68, retired and my personal circumstances are unchanged. Does anyone know why this has happened. Excuse my…
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Personal allowance with rental income
Hi based on my latest February payslip I have made the below assumptions. Employment income= £89K rental income from property= £32K Salary + Rental Income - Personal Allowance = £121,000 - £12,570 = £108,430 taxable income my question is can I use my full personal allowance of £12,570 as my salary is less than £100K.…
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Do charitable donations make any impact on £3000 limit on gifts free of inheritance tax
Hi, I have a question about the limits on what you're allowed to give away without possible inheritance tax liabilities. As I understand it: You're allowed to make gifts each tax year of up to £3000 and there won't be any issue with inheritance tax even if you die within 7 years of making the gift. You are also allowed to…
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CGT on buy to let
I bought a house around 2007, lived in it for about 2 years, then moved in with my gf (no wife) and rented out the original house. Now, my main residence with my wife is in both our names as is the original house that is let out. If sometime in the future, planning for retirement, I wanted to sell the original, rented…
