investment bond - top slicing - tax due

[Deleted User]

It does not appear on the form but in the calculation. ‘View your calculation’ is what you should be looking at.

Jeremy535897

Make sure that the tax calculation shows nil tax payable before filing the return.

[Deleted User]

So this is what I would do. Go into the employment section and remove the claim for fixed rate expenses and work from home allowance. View your calculation. Let’s say that it is £1356.80. 

Now re-enter both claims. The tax will be reduced to, say, £1200. 

In the additional information box you should be asking HMRC to adjust the tax due by -£1356.80.

[Deleted User]

Jeremy535897 said:

Make sure that the tax calculation shows nil tax payable before filing the return.

Yes - although there should now be a refund as a result of the WFH and fixed expenses claims.

JeffMason

Hello both,

Ok - I'm confused now - so there isn't somewhere to add the incorrect total due as tax already paid? I thought I was looking for that so my total would be reduced to zero owed as it should be?

And should I still be including the WFH 312 amount, which is accurate? Or the other 60 reduction, which is part of my current tax code and is also reasonable to include (as I do have 'tools' expenses - adaptors, hard drives etc bought to enable my work and not covered my employer)? 

JeffMason

HMRC have replied on the forum, sending me a link on how to enter the gain (which I ready know and have done) and said if it is still not correct, I should contact them 48 hours after submitting.

But I'd rather not pay this incorrect amount up front and then have to wrangle with them to get it back... as it's clearly a continuing issue with their system, that should have been resolved and hasn't - so it should be their problem and not mine.

Such a frustrating and confusing situation, and something I was under the impression should have been easy...

[Deleted User]

As I said - add something in the additional information box to the effect that the calculation arising should be adjusted downwards by an amount of £1356.80 as a result of the information above. 

I wouldn’t be paying anything. And I would  be claiming the expenses.

JeffMason

purdyoaten2 said:

As I said - add something in the additional information box to the effect that the calculation arising should be adjusted downwards by an amount of £1356.80 as a result of the information above. 

I wouldn’t be paying anything. And I would  be claiming the expenses.

So I’m just putting something in additional information to say I want it adjusted down? I thought you’d said I could adjust that myself by adding the extra amount into an already paid tax section?

But I misunderstood that it seems? 

And I should just be mentioning it in the additional information section? And submit the return with that amount (according to them) still due? 

Recalculating, it’s now at £1245.20.

[Deleted User]

You may have misunderstood- there is no mechanism for transferring information in the additional information box to the tax calculation. This will be a manual adjustment to be made by HMRC.

1) you have entered the information regarding the chargeable event correctly on the tax return.

2) This generates a tax calculation. We know this is incorrect. 

3) You are entering information in the additional information box, as advised by myself and Jeremy. I am suggesting that you advise HMRC as to the adjustment required on the tax liability in the calculation. This will be the manual adjustment to which I previously referred.

4) It’s not £1245.20. It is £1356.80. You are due a refund as a result of your working from home claim and your fixed expenses claim (is this entered?) So the £1245.20 (if correct) will be reduced by £1356.80 to create a refund.

[Deleted User]

The 1356.80 was the amount of tax due without the claims for working from home and fixed expenses and so must relate to the tax on the chargeable event. It should follow that the liability needs to be reduced by this amount as it should be NIL.