What trade can advise me?

LCK73

Jem16, her personal allowance is 10,500, where did u get 10,660 from?

LCK73

jem16 wrote: »

She'll have to notify the bank and get that removed I'm afraid as she's not entitled to say she is a non-taxpayer.

I've literally only just found out what her new state pension amount is, its the increase in this which is also contributing to her latest 'tax' status.

If I notify the bsnks now, will they take back tax from previous interest payments made gross or just going forward?

I'm also now thinking that the 4.5k from savings interest that I was predicting for 2014-15 can actually be reduced if I put some money away into isa's....15k into isa's in her name and then she can loan some money to her children which they can then invest in there own ISA's (not a problem as there is no iht looming).

That would deal with approx 45k of capital and reduce the interest for the year by approx £1200. This would take her taxable income total to £8k from pension plus £3.3k savings interest....total £11.3k.

Need to do the math to see if I can reach £10.5k as I don't want the hassle of revoking those r85s if at all possible. She has had enough to deal with losing her husband of 50 years!!

All sounds a bit too easy tho, there must be a flaw.

jem16

LCK73 wrote: »

Jem16, her personal allowance is 10,500, where did u get 10,660 from?

Sorry - that's correct. I had it in my head she was 75 for some reason.

LCK73 wrote: »

I've literally only just found out what her new state pension amount is, its the increase in this which is also contributing to her latest 'tax' status.

If I notify the bsnks now, will they take back tax from previous interest payments made gross or just going forward?

Should be just going forward but best check with the bank.

I'm also now thinking that the 4.5k from savings interest that I was predicting for 2014-15 can actually be reduced if I put some money away into isa's....15k into isa's in her name and then she can loan some money to her children which they can then invest in there own ISA's (not a problem as there is no iht looming).

The money she gives away would no longer be hers so she would be reducing her income.

That would deal with approx 45k of capital and reduce the interest for the year by approx £1200. This would take her taxable income total to £8k from pension plus £3.3k savings interest....total £11.3k.

Need to do the math to see if I can reach £10.5k as I don't want the hassle of revoking those r85s if at all possible. She has had enough to deal with losing her husband of 50 years!!

All sounds a bit too easy tho, there must be a flaw.

I can't see that this would be a good solution. The £30k that she gives away is no longer hers so she loses £780 worth of income for the sake of saving around £200 tax. She could also end up with problems with deprivation of assets if she ever needed care.

Where's the point in that?

LCK73

Good point! I'm getting carried away. I'm happy with a 200 tax bill for the year but can't stomach the revoking of r85s and then presumably I have to wait until next April to claim back the 10% on the proportion its due on.....? And all the associated paperwork that will accompany that.

jem16

LCK73 wrote: »

Good point! I'm getting carried away. I'm happy with a 200 tax bill for the year but can't stomach the revoking of r85s and then presumably I have to wait until next April to claim back the 10% on the proportion its due on.....?

I'm sure that's a whole lot better than the alternative.

LCK73

Oh well sounds like from next year none of it will be taxable anyway as her allowance will be 15.5k!
Thank you.