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Underpayment 24/25 pushing me into the 40% band in 25/26
I've been drawing from my SIPP at a level keeping me within the 20% tax band. Last month I decided to draw a large lump sum and pass the money on to my daughters. I knew this would attract tax at 40% but better to let them have the money now than after I die, whenever that may be. HMRC are not taking the additional tax due…
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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…
