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Just Gone To 40% Tax Level
Comments
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guitarman001 wrote: »Similarly, I made a loss of about £7k last year on shares. Could I offset this against my taxable income in order to get some sort of a tax rebate!?
No, Capital losses can only be offset against capital gains. The losses must also be realised (shares must be sold) and there is some scope for carrying forwards, but it's limited.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
Send them a letter that tells them the gross amount of interest and the amount of tax deducted. HMRC will adjust your tax code unless the amount is so large that it requires a tax return, in which case HMRC will send you one of those to complete before adjusting things.If you are a 40% tax-rate payer, do you need to inform the bank to take off another extra 20%, or do they do it automatically? Or do you just have to send a cheque to HMRC at the end of the year?
Institutions that pay interest are required to declare this to HMRC, and do.
The places that pay interest will normally send you an annual report giving the total interest paid for the tax year. Sometimes done on the statement after the end of the year, sometimes in a different letter.0 -
That's what I do - send them a letter with things like my salary for the year, pension contributions, bank interest earned, charitable donations, and they send me a letter back either with a new tax code, or sometimes a cheque.For the extra 20% due you must account to HMRC. Most typically by filling in a tax return, although some posters on these forums say they just write and tell them how much more they owe and why (with cheque enclosed).
Next year I'll have to put dividends on there so I'll see if they ask me to do a full
tax return.0 -
mr_fishbulb wrote: »I'll see if they ask me to do a full
tax return.
I've had to do tax returns every year since 2nd year at uni, and I even had to do a VAT return in my final year there!I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
mr_fishbulb wrote: »Next year I'll have to put dividends on there so I'll see if they ask me to do a full
tax return.
You won't be asked to complete a tax return unless you fit the following requirements.
Do you need to complete a tax return?0 -
Is it just a simple case of transferring my savings over to my wife who is a 20% tax payer - the funds belong to us both.
I have no issues for security with passing it in my wife's name.
My husband falls into that category while I am not a tax payer, so as we are a couple, share our saving etc. I put most of the savings in my name so I (we) can benefit from Gross tax and not separate accounts where he would have to pay more tax on savings interest. The only savings in his name are ISAS.
If you are confident in your relationship and have full trust in each other then why not benefit by letting your wife hold most of the savings in her name and at basic tax deductions.Everything has its beauty but not everyone sees it.0 -
gadgetmind wrote: »I've had to do tax returns every year since 2nd year at uni, and I even had to do a VAT return in my final year there!
And I thought those heady uni days were all about hippy love!0 -
And I thought those heady uni days were all about hippy love!
Post punk, New Wave, 80s stuff for us, but we didn't let any of that stop us getting a business off the ground.
Why go to uni to learn stuff unless you're prepared to start putting it all to good use?I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
How do you 'give' your savings to your partner.. does it have to be done 'officially' via some HMRC form? A a gift? (I keep hearing that).
One day I'll be IN the 40% tax bracket (I hope) and will then be ready for this lol!!0 -
guitarman001 wrote: »How do you 'give' your savings to your partner.. does it have to be done 'officially' via some HMRC form?
Nope. In the case of cash, you just transfer it. With shares held on trading platforms, I normally just bang the platform a letter telling them x shares of ABC Plc are irrevocably gifted to my spouse, so please move from account 123 to account 456, and it happens.
With cash, you just need interest details at year end, but other records are good. For shares, I keep detailed records so I can track section 104 holdings for capital gains purposes.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0
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