The Mortgage Free in Three - Take 3 challenge (MFiT-T3)

FreedomGirl

Hi,


Right - that's 9.5 k GBP sent over - the rest to do in the next couple of days (as long as bank doesn't stop transfers because they think something dodgy is going on !)


A question - this year my tax code has been set to ~15xxL (reflecting last year's tax return that got done when I asked them for my 40% back on my pension contributions), which means that I am in effect getting part of my 40% tax back within the tax year, right ? (It means that the 40% tax band kicks in at 15 K + next 32K). Or is it that I pay less of 20% tax - but then how does my SIPP handle that when it goes back to the HMRC to reclaim the 20% ? Am confused...


It was so much simpler when all 40% tax payers had to do a tax return at the end of each year...sigh...


Also my P11D has been incorrectly set by my employer. I am trying to get them to fix it, but in the interim, how do I handle it with HMRC once I get a corrected P11D (this tax year and the previous one). Simply write to them and ask them to recalculate ?


FG

MuffinTops

I'm sorry I've not been updating here as I've not been able to write very often so have just been lurking but ......

Today my Mortgage is 1p in CREDIT! I've paid it all off now! :T

I'm beyond excited and appreciative right now. The excitement as I feel my life has just turned a massive corner to sunnier climates, and appreciative that I was able to do it based on the help and support of so many people on this forum with their support and advice as well as a few things in real life helping me along!!!!!!

kmcld2

Congratulations Muffin Tops - I can imagine it feels amazing!

Twiggy_34

MuffinTops wrote: »

I'm sorry I've not been updating here as I've not been able to write very often so have just been lurking but ......

Today my Mortgage is 1p in CREDIT! I've paid it all off now! :T

I'm beyond excited and appreciative right now. The excitement as I feel my life has just turned a massive corner to sunnier climates, and appreciative that I was able to do it based on the help and support of so many people on this forum with their support and advice as well as a few things in real life helping me along!!!!!!

Well done! I don't blame you for being excited - it seems like such a distant thing for us right now, but I'm satisfied for now with setting smaller achievements in the meantime. For example, Junes payment should see us dip under £63k and we're on the countdown to dipping under £60k.

My poor OH though, when we received our annual statement the other day he thought we'd borrowed £4k less than we actually had and that we'd not even cleared £2k off the mortgage in the last 18 months! Bless his cottons

Suffolk_lass

FreedomGirl wrote: »

Hi,


Right - that's 9.5 k GBP sent over - the rest to do in the next couple of days (as long as bank doesn't stop transfers because they think something dodgy is going on !)


A question - this year my tax code has been set to ~15xxL (reflecting last year's tax return that got done when I asked them for my 40% back on my pension contributions), which means that I am in effect getting part of my 40% tax back within the tax year, right ? (It means that the 40% tax band kicks in at 15 K + next 32K). Or is it that I pay less of 20% tax - but then how does my SIPP handle that when it goes back to the HMRC to reclaim the 20% ? Am confused...


It was so much simpler when all 40% tax payers had to do a tax return at the end of each year...sigh...


Also my P11D has been incorrectly set by my employer. I am trying to get them to fix it, but in the interim, how do I handle it with HMRC once I get a corrected P11D (this tax year and the previous one). Simply write to them and ask them to recalculate ?


FG

There are some easy to follow answers that sound like your P11D correction question at this link here.

Not sure about the SIPP question though!
SL

FreedomGirl

Hi SL,


Sorry - I can't get the link to work. Can you repost ?


Thanks


FG

Suffolk_lass

FreedomGirl wrote: »

Hi SL,


Sorry - I can't get the link to work. Can you repost ?


Thanks


FG

http://www.hmrc.gov.uk/payerti/exb/errors.htm
I have pasted the Url itself rather than the link here - hope this works
SL

SusanneCape

Hi everyone ,

My numbers do not seem to be updated yet. FinancialFreedom, do you need me to resend?

Have a great day,

FreedomGirl

Hi,


Well, that's some more cash in the SIPP - balance is now £79,250. Need to start thinking about which shares to target for future purchase. The only rule I am going to follow is to buy in a falling market - need to set a metric for that.


I'll update properly in June - but it is starting to look like I can make the target for the end of the year (2014). As long as I don't lose my job


I am wondering whether my 2014/2015 goal should now be to make sure that both my husband and I's full ISAs are topped up each year (that's 30k between the two of us, of which I will be supplying 25k. Eek !)


Does anyone have any thoughts (gut feel, wild guesses) on when they think the 40% tax rebates on pension might be cut significantly. I remember hearing about a recent speech where the chancellor hinted at that the fact that they may be reduced (it's already dropped from 50k to 40k).


I am also thinking about the balance of savings within an ISA and outside of a pension wrapper (excluding DB pensions, index linked certs).


I want to ensure am balanced (am currently weighted towards pensions) - I suspect a 50:50 rule might be the way to go ? Does anyone have any rough guidance on what they use to ensure balance ? Should emergency savings (currently in ISA) be considered within that planning ?


FG

Suffolk_lass

FreedomGirl wrote: »

Hi,


Well, that's some more cash in the SIPP - balance is now £79,250. Need to start thinking about which shares to target for future purchase. The only rule I am going to follow is to buy in a falling market - need to set a metric for that.


I'll update properly in June - but it is starting to look like I can make the target for the end of the year (2014). As long as I don't lose my job


I am wondering whether my 2014/2015 goal should now be to make sure that both my husband and I's full ISAs are topped up each year (that's 30k between the two of us, of which I will be supplying 25k. Eek !)


Does anyone have any thoughts (gut feel, wild guesses) on when they think the 40% tax rebates on pension might be cut significantly. I remember hearing about a recent speech where the chancellor hinted at that the fact that they may be reduced (it's already dropped from 50k to 40k).


I am also thinking about the balance of savings within an ISA and outside of a pension wrapper (excluding DB pensions, index linked certs).


I want to ensure am balanced (am currently weighted towards pensions) - I suspect a 50:50 rule might be the way to go ? Does anyone have any rough guidance on what they use to ensure balance ? Should emergency savings (currently in ISA) be considered within that planning ?


FG

I am no expert on financial matters but I do take an interest in politics and IMHO this Chancellor won't be jeopardising any votes in his last Autumn Statement or final budget of this term of Parliament so you would certainly be safe assuming no change before Autumn 2015. Not too far away in long-term savings terms but pretty good for short-term savings horizons

SL