investment bond - top slicing - tax due

JeffMason

purdyoaten2 said:

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.

Yes, my gain, my PAYE pay, the WFH 312 and the 60 are all entered, now giving me a total owed of 1245.20. 

It was more before I entered the 312 and the 60, but I assumed it dropped because of adding them?

Is that not what I am asking to be removed? 

JeffMason

Jeremy535897 said:

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

Apologies, this has confused me a bit. There doesn’t seem to be a way to reduce it to nil. That’s the problem. 

Isn’t that why I’m adding all of this information into the additional information page? 

[Deleted User]

JeffMason said:

purdyoaten2 said:

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.

Yes, my gain, my PAYE pay, the WFH 312 and the 60 are all entered, now giving me a total owed of 1245.20. 

Is that not what I am asking to be removed? 

Not sure you are getting this. It was £1356.80. You have reduced that by the two claims to £1242.20.  

If you only reduce by £1242.20 the tax will be NIL.

If there was no chargeable event you would be due a refund as a result of your claims. Why should that not still be the case?

I repeat - £1242.20 to be reduced by £1356.80 equals repayment due to you of £114.60. 

If you are still not content - don’t advise of the adjustment to be made. But it will be the end result.

JeffMason

[Deleted User] said:

JeffMason said:

[Deleted User] said:

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.

Yes, my gain, my PAYE pay, the WFH 312 and the 60 are all entered, now giving me a total owed of 1245.20. 

Is that not what I am asking to be removed? 

Not sure you are getting this. It was £1356.80. You have reduced that by the two claims to £1242.20.  

If you only reduce by £1242.20 the tax will be NIL.

If there was no chargeable event you would be due a refund as a result of your claims. Why should that not still be the case?

I repeat - £1242.20 to be reduced by £1356.80 equals repayment due to you of £114.60. 

If you are still not content - don’t advise of the adjustment to be made. But it will be the end result.

So me just adding the 312 and 60 doesn’t automatically take into account those amounts? I thought that is why it got lower? 

JeffMason

I think the fact that this is part PAYE is what’s confusing me. I’ve only ever done a fully self employed return before. 

JeffMason

so I say in additional information that I’m owed 1356.80 and they’ll understand why im saying a higher number than the tax due amount? Or do I need to explain that? 

[Deleted User]

JeffMason said:

[Deleted User] said:

JeffMason said:

[Deleted User] said:

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.

Yes, my gain, my PAYE pay, the WFH 312 and the 60 are all entered, now giving me a total owed of 1245.20. 

Is that not what I am asking to be removed? 

Not sure you are getting this. It was £1356.80. You have reduced that by the two claims to £1242.20.  

If you only reduce by £1242.20 the tax will be NIL.

If there was no chargeable event you would be due a refund as a result of your claims. Why should that not still be the case?

I repeat - £1242.20 to be reduced by £1356.80 equals repayment due to you of £114.60. 

If you are still not content - don’t advise of the adjustment to be made. But it will be the end result.

So me just adding the 312 and 60 doesn’t automatically take into account those amounts? I thought that is why it got lower? 

Not sure I can help you much further here. 

One final attempt. Let’s say that you had no chargeable event. Your liability would be NIL. 

You now make the two claims resulting in a refund of £114.60. You are DUE this repayment.

You now add the chargeable event and you tax liability INCREASES by £1356.80 to £1242.20.

You want to bring it back to minus £124.60 and require an adjustment of £1356.80.

JeffMason

Huge apologies - I’m definitely not quite getting it. This is quite difficult for me to make sense of and I need the idiot proof version… 

[Deleted User]

JeffMason said:

Huge apologies - I’m definitely not quite getting it. This is quite difficult for me to make sense of and I need the idiot proof version… 

Fair enough - I will leave it there. Perhaps someone else may be able to explain it better than I can.

JeffMason

purdyoaten2 said:

JeffMason said:

purdyoaten2 said:

JeffMason said:

purdyoaten2 said:

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.

Yes, my gain, my PAYE pay, the WFH 312 and the 60 are all entered, now giving me a total owed of 1245.20. 

Is that not what I am asking to be removed? 

Not sure you are getting this. It was £1356.80. You have reduced that by the two claims to £1242.20.  

If you only reduce by £1242.20 the tax will be NIL.

If there was no chargeable event you would be due a refund as a result of your claims. Why should that not still be the case?

I repeat - £1242.20 to be reduced by £1356.80 equals repayment due to you of £114.60. 

If you are still not content - don’t advise of the adjustment to be made. But it will be the end result.

So me just adding the 312 and 60 doesn’t automatically take into account those amounts? I thought that is why it got lower? 

Not sure I can help you much further here. 

One final attempt. Let’s say that you had no chargeable event. Your liability would be NIL. 

You now make the two claims resulting in a refund of £114.60. You are DUE this repayment.

You now add the chargeable event and you tax liability INCREASES by £1356.80 to £1242.20.

You want to bring it back to minus £124.60 and require an adjustment of £1356.80.

Ah, I don’t think I got the minus numbers thing before. 

So the 1356.80 going to 1245.20 makes sense to you? And the refund of 114.60 seems accurate?