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How to prepare for MTD ITSA from April 2026?
Hi everyone, I’ve been reading about Making Tax Digital for Income Tax (MTD ITSA) starting from April 2026, and I’m a bit confused about how to prepare for it. Do we need to submit quarterly updates manually, or is there software that makes the process easier? Also, what’s the best way to track income and expenses to stay…
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Appeal against inclusion in MTD?
I have a feeling this might be wishful thinking but….HMRC have roped me into MTD because a one off payment last year kicked me over the MTD threshold for property income. My property income has been way below the threshold for the last 10 years and will be again this tax year. I'm not self employed. It looks like I'll have…
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Health insurance and HMRC
Hi, I have medical insurance at work. this new tax year HMRC said I owe them £174 because of last year wasn't deducted from my salary, tax code didn't change;'. Who is to blame here? I don't know if my employer didn't inform HMRC about my health insurance or maybe HMRC overlooked it ?
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Tax bands when adjusted net income above £125,140
Hi, a relative has for the first time (simultaneously) exceeded adjusted net income levels of both £100,000 and £125,140 and we just keyed in the relevant figures into a self assessment to get a calculation of tax liability (to start early with saving up for the liability due next January), and to my surprise, the HMRC tax…
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How do changes to personal allowance affect my higher rate threshold?
I just read (on a reddit thread) that changes to an individual's personal allowance will change their higher rate threshold by the same amount. I can't see this on gov.uk or money helper - they only say that the personal allowance is "up to £12570" and the higher rate threshold is £50270 (rather than saying personal…
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Choosing to pay over the annual allowance
Curious how common this is. Example scenario: 200k earner pays 150k into SIPP. Tax relief is payed back through SA. Without tax relief there is a 40% plus entry penalty as well as the eventual 40% plus on withdrawal. However while inside the SIPP there is no CGT (24%) or DT (36%). 2 CGT events offset the tax entry penalty.…
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Product in exchange for charity donation
Hi I entered a mini competition whereby I received an object in return for a set donation and that money was paid directly to the person's chosen charity (a well known one). For self assessment purposes as a sole trader, does that still count as a charity donation? Thanks
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Self assessment query
Hello, in September 2025 i submitted my first HMRC Self assessment return for my savings interest. Two weeks later i got £737 back in my Royal Mail pay in PAYE. I'm wondering do have to put this down in this years online self assessment return 2025/26 in the ( "Have you had any 2025-26 Income Tax refunded or off-set by us…
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Please: Is this correct? Self Assessment
Please does one answer the other correctly, the wording is slightly different? Self Assessment Question And: The 513 figure originated from the second P2 I received in January 25
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2024/25 Self Assessment Tax Return
There we go! Hopefully the only thread (before multi previous years are re-enacted)
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Inheritance tax
A married couple have savings of £350k each and a jointly owned property worth £350k. One dies and leaves everything to the other, is there any IHT to pay? When the other one dies therefore having £700k in savings and a property worth £350k, is there any IHT to pay. I know there is an allowance of £325k and also of £175…
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Tax Codes explained
Found below in news feed today, thought some may find useful… ***************** A tax code is a series of numbers and letters used by employers or pension providers to work out how much tax should be deducted from your pay or pension at source. Anyone in employment or with a private pension will have one. Making sense of…
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Where do I enter payments made to HMRC on Self Assessment?
Both me and the wife have just been ordered to complete SA for the first time for FY 24/25 and must submit by 9 July 26. This FY (25/26) I’ve been on to HMRC regarding money owed for FY 24/25 and they gave me figures which I promptly paid and I have receipts. My payment was £2045.20 on 27 Feb 26 and is shown in PAYE tax…
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TAX QUERY FROM SALE OF HOUSE
My wife and I each have our own properties, but we both live in my house with hers rented out. My wife is considering selling her house and using the income to help her income until she reaches pension age (7 years away). If she sells what is her primary residence, but does not buy another house, does she have to pay tax…
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Which tax year do I declare this in?
I get some money into my current account every month from an NS&I bond. It's usually paid to me on the 5th, but as the 5th is a Sunday, it "came in" on the 2rd (despite this being a bank holiday). However, looking at the transaction in my current account, it's dated Tues 7th April at midnight. Presumably the payment…
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What counts as income for the purposes of the starting savings rate allowance?
I have a question about how the starting savings rate allowance is affected (or not) by different kinds of 'income'. My understanding is as follows. 1. If I am a basic rate taxpayer (20%), I can receive up to 1000 GBP in interest on savings each year (the personal savings allowance) without being taxed on it. Anything…
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Stopped self employment but still receiving MTD letters
Morning all , wife stopped self employment in Jan 2026 and filled in the online stoping self employment form on gov website but still receiving letters ref MTD .Appreciate it’s getting close that MTD starts for many soon but don’t want my wife to receive a penalty or similar for not notifying of change in circumstances .…
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Inheritance Tax Annual Exemption Question
Good evening. My mum and dad want to gift my sister a total of £4,500, which is more than the £3,000 annual exemption. Am I right that they both get £3,000 annual exemption, so technically have £6,000 they can gift between them (up to £3,000 each), without it falling into potential Inheritance Tax later down the line? (As…
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26/27 code
I have a DB pension in payment of around £3,300 a year. For the upcoming year, this has been given a code of K1119. I think this is about right, but was wondering how much of it will be taken in tax each month. It would appear to be most of it. That's fine, if it means I don't have to do simple assessments, but I thought…
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Potential rowback on tax on inherited SIPPs
From the Telegraph yesterday, Mike Warbuton on "It's finaly becoming clear how the new pension death tax could work": Very recently included in the Finance Bill is a clause which amends the current income tax rules to give relief to beneficiaries of a pension fund which has been caught for inheritance tax. The wording is…
