-
Avoiding 60% marginal rate by using pension carry forward in alternating years?
After using my whole £60k pension annual allowance between defined benefit + voluntary pension contributions, my annual gross income is around £120k. It seems to me that if I alternated between using £40k one year and then £80k the next (using carry forward from the previous year), I would save £1500/year or so in tax. Is…
-
Adjusted tax code from HMRC
I have received a new year gift from HMRC today notifying that my tax code will be adjusted to 257LX due to untaxed interest. HMRC have quoted a figure of around £3.5k, that figure will increase by end of 24-25 tax year. For background, my income comes from two sources only: 1. PAYE job 2. Savings interest (referring to…
-
Is my income taxable?
Hi all, For the past year or two, almost all of my income has been in the form of gifts. There is a person who is essentially a patron of mine, who pays me to work on my own projects, with no expectation of services in return. So far I've been invoicing the person, putting the income through my books and paying tax on it.…
-
Claiming past year's losses on this year's return confusion
Apologies if this is the wrong sub-forum but I'm working on my 23-24 tax return. In the 22-23 tax year my self-employment business had a 2k loss and no income. I entered in the loss under 22. Net Loss but did not put anything under "35. Total loss to carry forward after all other set-offs - including unused losses brought…
-
2023/2024 Self Assessment Tax Bill - Please HELP
Happy New Year everybody and thank you for reading and any advise given. For the last 7 years, me and my wife have been doing self assessments as we were getting rental income from a property that we own together. She hasn't been paying any tax on her share as this was her only income and always less than the tax free…
-
Reducing Tax burden on rental property.
Hi all, I'm reaching out for advice and guidance on a property I own and am looking to rent. I work full time and have a secondary employment so therefore already pay higher rate tax (40%). I pay a pension in job 1 which also has an employer contribution element. I get a pension in job 2 but this is non contributory by me,…
-
Tax on savings interest - have I miscalculated?
I've just paid my 2023/24 tax bill via self assessment. I have a few one year fixed savings accounts which pay interest monthly, which I counted in my interest savings (I basically used the statements of interest that the banks sent me). However they didn't all mature in 2023/24. Have I done this incorrectly? Should I only…
-
Payments on Account - PAYE
I have just completed my self-assessment for the 5th year. This time however I am being asked to also make two payments on account. All of my income is PAYE and from searching the HMRC website I found this: You must make these 2 payments, unless either: * the amount of tax you owed last year was less than £1,000 * last…
-
Offset shares loss
Hello, I have a S&S account with shares that are pretty much worthless, a loss of around £645 if I sell. In February, I have a SAYE works share scheme maturing, with an anticipated profit of around £4500. I am aware I will have a £3000 cgt allowance and I am liable for 18% tax on the remaining £1500. I am also aware if I…
-
Tax Year - Interest ?
Hi, A bit of help please on my little tax problem.Been retired for some years and had no need to submit a SA, but now have received a demand for more tax this year, saying that their "estimated" savings income for this current year in almost double what we know it will be.Always thought savings interest earned in this tax…
-
A different way to advertise rental prices - "Cost plus taxes"?
Hi, (Writing as a landlord) I've noticed for some time how we regularly have new taxes and regulations imposed (by both political persuasions) on "the evil landlords", and somewhat independently stories about "rents are increasing out of control" - with no connection between the two. I'm very conscious that while the rent…
-
Simple Assessment - under assessed
For the 2023-24 tax year, I was moved from the Self Assessment process to the Simple Assessment process for the first time. HMRC's initial assessment excluded all unearned income. I wrote to them to report this, and they eventually issued a revised assessment. However, for unearned income they only provided an aggregate…
-
HMRC Self Assessment Payments that I have not received.
I wonder if anyone else has been contacted to be chased for payments they have not received. HMRC tell me I owe two payments of around £200 each from 5 years ago. Neither of which I have received and as I have explained over the phone, I have the bank statements to prove they were not made to me. They are not at all…
-
HMRC simple assessment payment question
I may be over thinking this, I get anxious easily. My Mom had a simple assessment tax bill and has asked me to pay it online for her as her bank doesn't issue cheques and she hasn't got a cheque book. I have the reference starting with the X and when I put this in in just says to enter amount you wish to pay. Easy enough,…
-
Still waiting to hear from HMRC
Having logged on to my online account, it says HMRC are yet to calculate my tax for the last financial year. So at the moment i dont know if i owe them anything or vice versa. I don't do self assessment. Should i be worried having not heard by now? Seem to be taking a long time this year.
-
Personal Savings Allowance - Pension Contributions & Starting rate for savings
Hi everyone,I'm looking for some advice regarding personal savings
allowance and pensions. My spouse and I are expecting to come into a
significant sum of money within the next 12 months and were concerned about
going over the personal savings allowance. We've been considering reducing our taxable income by increasing
our…
-
Paying off student loan - tax query
To pay off my daughter's student load will require a payment of circa £36k. My wife and and I are considering paying off the loan. We are in a strong cash position. I feel pretty well versed in the principle arguments for and against doing this and am not seeking any advice on those from this post. We will still be looking…
-
Delays with HMRC
I submitted a form R43 back in August. It’s not a huge amount of money Im owed basically they taxed a one off payment in April at 40%, they’ve already paid me the bulk of tax back, but still taxed a whole 20K at 20% rather than applying a personal allowance. I contacted them in August and they said to fill out an R43 to…
-
Will this approach to gifting out of excess income work?
I’ve been going through my income and expenditure for the tax year 2023/24 and have identified just over £20k of excess income. Looking at this year 2024/25 I think I am on course to exceed that. Bearing in mind that HMRC doesn’t consider excess income to convert to capital for 1-2 years am I able to gift £40k in March…
-
Confusion about 40% Tax
Hello all, I will be a higher rate 40% tax payer for the first time ever this 2024/25 financial year, predicting to earn approximately £53000 gross. I'm paid via PAYE and my tax code is 1257L. From what I understand, I will be taxed @ 40% on my earnings from £50,271 to £53000. How will the additional 20% tax be collected…
