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Can I be fined for a terminally-ill parent missing their self assessment deadline before death?
Hi My terminally-ill parent missed their 2023 self-assessment deadline a few months before their death. When they were first fined, I wrote to HMRC and explained why. They eventually wrote back to say that I wasn't entitled to speak on my parent's behalf, so my explanation would not be considered without my parent's…
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Giufting £3K to children
Understand each parent can gift £3k in a tax year, plus one roll over from previous year if it has not been used. Must this be a cash transfer? Can it be an I O U? Can it be a slice of equity in land or property?
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eBay and Etsy Side hustle tax
My fiancee has been running a small high volume low margin business on eBay and Etsy where she makes about £5000ish per year in profit. Clearly, this is above the £1000 sole trader allowance and so she needs to declare this on a tax return. I'd have thought that HMRC would have bigger fish to fry but there you go..... She…
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Tax on gifts
I'm aware of the gift allowances and the 7 year IHT rule, so assuming a gift is larger than any gift allowance and I live for more than 7 years after giving the gift, I'm a little confused about how the tax on income resulting from the gift is determined. For example, assume I want to give £20k to my 23 year old son. I…
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CGT on foreign shares
I have some foreign shares to sell, which incurs fx costs to change to GBP and potentially to move from a USD to GBP bank account. Are such costs allowable costs, so can be removed from capital gains liability ? I note there is a judgement that the "amount of foreign currency must be converted into its sterling value at…
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Tax worry regarding going into 40% bracket.. not sure how it works
As per headline my salary is £28,000 a year but ive done a load of overtime this last 12 months. I work for a council and my tax code has always been C1257L Cumulative. We go April to April for the tax year and into the last month it has gone to £52,025 for Niable pay and £48,329 for taxable pay. Does this mean I have gone…
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When will HMRC adjust my code to reflect my pension contribution?
I am making a large pension contribution of £15k to get my NAI below 100k. I have just made the contribution however, HMRC do not know about this yet and I got a K code through the post last week since HMRC clearly think I will gross £115k and they know nothing about this pension contribution just yet. I do not get my P11D…
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PAYE - being taxed on £421 worth of savings income - incorrect?
I made about £5000 in savings interest last year. I am being told I have to pay tax on £421 of it, but I only earned £12k, so should all this income not be tax free because of the personal allowance and the starting rate of tax?
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PAYE Tax code change due to pension payments
Good Afternoon After speaking with HMRC, they are changing my tax code next year to consider the extra relief as I am in the 40% tax band for pension payments. I cannot work it out, but they say they are correct. Yearly Salary £70560 Yearly Pension payments Company Gross £2822 pension is deducted after tax, Private SIPP…
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IHT or CGT? Help!
We sold an inherited property recently. The sale price was £150k more than the valuation we had previously used in the IHT calculations. We have paid off the IHT that was due. BUT, what happens with this additional £150k? Do we need to pay additional IHT on it? At 40%? OR do we need to pay CGT on it? At 28%? There were…
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Tax on Medical Insurance (Benefit in Kind)
Hi I receive medical insurance via my employers and understand that I am taxed on this as a benefit in kind however, please can anyone advise whether I should just be taxed at the normal rate (I am a basic rate tax payer). At the moment the whole amount is deducted from my personal allowance. Many thanks
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MSE Income tax calculator vs HMRC - WHO'S RIGHT??
Until recently I have been in receipt of an employee's salary, plus a pension from a previous employer. I have been checking the income tax I've paid over the last few years from the actuals I've had deducted by HMRC against the MSE Tax Calculator. The pension tax code is D0 and the figures from HMRC and MSE are the same,…
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Marriage Tax Allowance
Hi I would like to apply for the above and see that the word EARNINGS is mentioned. Is a PENSION considered as EARNINGS? Thanks
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Penalty charge error
I filled in the self-assessment questionnaire on the HMRC website and was told I don't need to put in a tax return. I have now been sent a penalty charge notice. Is this normal?
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National insurance
I earn under the tax limit even when I work overtime but when I do work overtime it takes NI out of my wages. How do I get this back ?
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Company still paid me after I left the UK - what does this mean for my tax?
Hello, I am in a fairly unique position where my previous employer was still paying me for a few months after I left the UK to go travelling (despite handing in my notice and resigning). After checking my UK account for the first time in months, I noticed this and did the right thing - I got in touch with the company…
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Private Pensions contributions - dealing with HMRC
Hi All I am a higher rate tax payer (40%) I am lucky enough to have 100k that I would like to transfer into my private pension pot. To smooth the investment out I will transfer £4,167 per month for 24 months. My private pension provider will automatically apply the standard 25% tax relief to the contribution. Given I am in…
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Endownment Policy Maturing
I earn £40k/year and have an endownment policy maturing £15k. Am I laible for tax ? I will probably re-invest some and spend the rest. Will this reduce the potential tax bill ?
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Trading allowance
Hi I stopped being self employed in Dec 2023(HMRC have been notified) When I fill in my final tax return can I still use the £1000 trading allowance?
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Is this an effective strategy to stay within £100k tax bracket (avoid 60%)
If my salary is £112k and my work pension scheme set to 'net arrangements' and in the interest of remaining within the £100k tax bracket, can I pay £12k (monthly or as lumpsum bend f each march) onto a SIPP (non work related, RAS)? ps. yes, overall annual figure would stay <£60k AA.
