Tax thresholds 2017/18/ 18/19 19/20

Hoenir

[Deleted User] said:

Hoenir said:

[Deleted User] said:

The lady in the assessment dept was adamant that the tax thresholds were as I've said above. Where will she have those figures from? 

From the budget announcement by the Chacellor of the Exchequer in which they set. Parliament then passes a Finance Bill. Which the HMRC acts in accordance with. Total transparency. No need for a Ministry of Truth. 

So you are saying that the tax threshold for 2017/18 was £8,164, because that's what she said. 

No. From the budget announcement by the Chancellor of the Exchequer in which they set. Parliament then passes a Finance Bill. Which the HMRC acts in accordance with. 

Hoenir

[Deleted User] said:

sheramber said:

Isthisforreal99 said:

[Deleted User] said:

I have just been told by HMRC (self assessment department) that the tax thresholds for 2017/18, 2018/19, 2019/20 were, respectively, £8,164, £8,424 and £9,504 and that I owe national insurance contributions for those years of just over £100 per year. The National Insurance department says I do not owe anything. And my pension contributions are fully paid for those years. Was the person I spoke to in the self assessment department wrong/confused? I'm not sure what, if anything, to do. Is there a Ministry of Truth at HMRC I can communicate with?

For what class of National Insurance? Were you self-employed?

In previous years self employed traders paid class 2 contributions  and class ;4  contributions, depending on their income.

The amounts were charged along with your income tax, if due.

The limits for paying them were different from the income tax levels.

The class2 level was lower than the  clas 4 level . You may be die only  class 2 or you may have to pay both class 2 and class 4 , if your income was high enough. 

Only class 2 contributions counted for state pension. 

If the income was below these limits level to pay class2 contributions you pay them voluntary to safeguard your state pension. 

sheramber said:

Isthisforreal99 said:

[Deleted User] said:

I have just been told by HMRC (self assessment department) that the tax thresholds for 2017/18, 2018/19, 2019/20 were, respectively, £8,164, £8,424 and £9,504 and that I owe national insurance contributions for those years of just over £100 per year. The National Insurance department says I do not owe anything. And my pension contributions are fully paid for those years. Was the person I spoke to in the self assessment department wrong/confused? I'm not sure what, if anything, to do. Is there a Ministry of Truth at HMRC I can communicate with?

For what class of National Insurance? Were you self-employed?

In previous years self employed traders paid class 2 contributions  and class ;4  contributions, depending on their income.

The amounts were charged along with your income tax, if due.

The limits for paying them were different from the income tax levels.

The class2 level was lower than the  clas 4 level . You may be die only  class 2 or you may have to pay both class 2 and class 4 , if your income was high enough. 

Only class 2 contributions counted for state pension. 

If the income was below these limits level to pay class2 contributions you pay them voluntary to safeguard your state pension. 

When I actually spoke to the NI dept, they said I didn't owe any. I've paid in full for my state pension for all those years, so I don't think I need to worry....  

The HMRC are empowered to collect unpaid taxes. With considerable powers to impose penalties and interest.  The issue isn't simply going to vanish. 

[Deleted User]

Isthisforreal99 said:

[Deleted User] said:

I don't and have never earned over the the tax threshold (the real ones not the ones I was given earlier). So I shouldn't pay Class 4. Right? 

The lady in the assessment dept was adamant that the tax thresholds were as I've said above. Where will she have those figures from? 

Wrong, the tax thresholds and NIC thresholds were different back then so you might have not earned enough to pay tax but still enough to pay class 4.

Ah.... that's it then. I was slightly above the LPL, so I was supposed to pay some class 4, I suppose. I'm going to write to the HMRC for clarification. 

[Deleted User]

Isthisforreal99 said:

[Deleted User] said:

sheramber said:

Isthisforreal99 said:

[Deleted User] said:

I have just been told by HMRC (self assessment department) that the tax thresholds for 2017/18, 2018/19, 2019/20 were, respectively, £8,164, £8,424 and £9,504 and that I owe national insurance contributions for those years of just over £100 per year. The National Insurance department says I do not owe anything. And my pension contributions are fully paid for those years. Was the person I spoke to in the self assessment department wrong/confused? I'm not sure what, if anything, to do. Is there a Ministry of Truth at HMRC I can communicate with?

For what class of National Insurance? Were you self-employed?

In previous years self employed traders paid class 2 contributions  and class ;4  contributions, depending on their income.

The amounts were charged along with your income tax, if due.

The limits for paying them were different from the income tax levels.

The class2 level was lower than the  clas 4 level . You may be die only  class 2 or you may have to pay both class 2 and class 4 , if your income was high enough. 

Only class 2 contributions counted for state pension. 

If the income was below these limits level to pay class2 contributions you pay them voluntary to safeguard your state pension. 

sheramber said:

Isthisforreal99 said:

[Deleted User] said:

I have just been told by HMRC (self assessment department) that the tax thresholds for 2017/18, 2018/19, 2019/20 were, respectively, £8,164, £8,424 and £9,504 and that I owe national insurance contributions for those years of just over £100 per year. The National Insurance department says I do not owe anything. And my pension contributions are fully paid for those years. Was the person I spoke to in the self assessment department wrong/confused? I'm not sure what, if anything, to do. Is there a Ministry of Truth at HMRC I can communicate with?

For what class of National Insurance? Were you self-employed?

In previous years self employed traders paid class 2 contributions  and class ;4  contributions, depending on their income.

The amounts were charged along with your income tax, if due.

The limits for paying them were different from the income tax levels.

The class2 level was lower than the  clas 4 level . You may be die only  class 2 or you may have to pay both class 2 and class 4 , if your income was high enough. 

Only class 2 contributions counted for state pension. 

If the income was below these limits level to pay class2 contributions you pay them voluntary to safeguard your state pension. 

So, the figures she was quoting me were not the tax threshold but the NI one? I did keep asking if she was quoting the tax threshold, and she kept saying yes. When I actually spoke to the NI dept, they said I didn't owe any. I've paid in full for my state pension for all those years, so I don't think I need to worry....  

You will owe the Class 4 NIC and interest will continue to accrue on this.

Yes, I've got that now. Would've been nice if HMRC had let me know at some point, like in a letter. And the woman in self assessment had told me that she was quoting NI thresholds not tax thresholds and why I'd exceeded them. Their communication is not great!

[Deleted User]

[Deleted User] said:

Isthisforreal99 said:

[Deleted User] said:

I don't and have never earned over the the tax threshold (the real ones not the ones I was given earlier). So I shouldn't pay Class 4. Right? 

The lady in the assessment dept was adamant that the tax thresholds were as I've said above. Where will she have those figures from? 

Wrong, the tax thresholds and NIC thresholds were different back then so you might have not earned enough to pay tax but still enough to pay class 4.

Ah.... that's it then. I was slightly above the LPL, so I was supposed to pay some class 4, I suppose. I'm going to write to the HMRC for clarification. 

When you completed your return it would have stated in the calculation ‘Total amount of Income Tax and Class IV NIC due’

Here are the rates straight from the HMRC website!

Isthisforreal99

[Deleted User] said:

Isthisforreal99 said:

[Deleted User] said:

sheramber said:

Isthisforreal99 said:

[Deleted User] said:

I have just been told by HMRC (self assessment department) that the tax thresholds for 2017/18, 2018/19, 2019/20 were, respectively, £8,164, £8,424 and £9,504 and that I owe national insurance contributions for those years of just over £100 per year. The National Insurance department says I do not owe anything. And my pension contributions are fully paid for those years. Was the person I spoke to in the self assessment department wrong/confused? I'm not sure what, if anything, to do. Is there a Ministry of Truth at HMRC I can communicate with?

For what class of National Insurance? Were you self-employed?

In previous years self employed traders paid class 2 contributions  and class ;4  contributions, depending on their income.

The amounts were charged along with your income tax, if due.

The limits for paying them were different from the income tax levels.

The class2 level was lower than the  clas 4 level . You may be die only  class 2 or you may have to pay both class 2 and class 4 , if your income was high enough. 

Only class 2 contributions counted for state pension. 

If the income was below these limits level to pay class2 contributions you pay them voluntary to safeguard your state pension. 

sheramber said:

Isthisforreal99 said:

[Deleted User] said:

I have just been told by HMRC (self assessment department) that the tax thresholds for 2017/18, 2018/19, 2019/20 were, respectively, £8,164, £8,424 and £9,504 and that I owe national insurance contributions for those years of just over £100 per year. The National Insurance department says I do not owe anything. And my pension contributions are fully paid for those years. Was the person I spoke to in the self assessment department wrong/confused? I'm not sure what, if anything, to do. Is there a Ministry of Truth at HMRC I can communicate with?

For what class of National Insurance? Were you self-employed?

In previous years self employed traders paid class 2 contributions  and class ;4  contributions, depending on their income.

The amounts were charged along with your income tax, if due.

The limits for paying them were different from the income tax levels.

The class2 level was lower than the  clas 4 level . You may be die only  class 2 or you may have to pay both class 2 and class 4 , if your income was high enough. 

Only class 2 contributions counted for state pension. 

If the income was below these limits level to pay class2 contributions you pay them voluntary to safeguard your state pension. 

So, the figures she was quoting me were not the tax threshold but the NI one? I did keep asking if she was quoting the tax threshold, and she kept saying yes. When I actually spoke to the NI dept, they said I didn't owe any. I've paid in full for my state pension for all those years, so I don't think I need to worry....  

You will owe the Class 4 NIC and interest will continue to accrue on this.

Yes, I've got that now. Would've been nice if HMRC had let me know at some point, like in a letter. And the woman in self assessment had told me that she was quoting NI thresholds not tax thresholds and why I'd exceeded them. Their communication is not great!

I mean you completes Self Assessment Tax Returns, no? That's when you should have discovered it was due.

sheramber

[Deleted User] said:

sheramber said:

Isthisforreal99 said:

[Deleted User] said:

I have just been told by HMRC (self assessment department) that the tax thresholds for 2017/18, 2018/19, 2019/20 were, respectively, £8,164, £8,424 and £9,504 and that I owe national insurance contributions for those years of just over £100 per year. The National Insurance department says I do not owe anything. And my pension contributions are fully paid for those years. Was the person I spoke to in the self assessment department wrong/confused? I'm not sure what, if anything, to do. Is there a Ministry of Truth at HMRC I can communicate with?

For what class of National Insurance? Were you self-employed?

In previous years self employed traders paid class 2 contributions  and class ;4  contributions, depending on their income.

The amounts were charged along with your income tax, if due.

The limits for paying them were different from the income tax levels.

The class2 level was lower than the  clas 4 level . You may be die only  class 2 or you may have to pay both class 2 and class 4 , if your income was high enough. 

Only class 2 contributions counted for state pension. 

If the income was below these limits level to pay class2 contributions you pay them voluntary to safeguard your state pension. 

sheramber said:

Isthisforreal99 said:

[Deleted User] said:

I have just been told by HMRC (self assessment department) that the tax thresholds for 2017/18, 2018/19, 2019/20 were, respectively, £8,164, £8,424 and £9,504 and that I owe national insurance contributions for those years of just over £100 per year. The National Insurance department says I do not owe anything. And my pension contributions are fully paid for those years. Was the person I spoke to in the self assessment department wrong/confused? I'm not sure what, if anything, to do. Is there a Ministry of Truth at HMRC I can communicate with?

For what class of National Insurance? Were you self-employed?

In previous years self employed traders paid class 2 contributions  and class ;4  contributions, depending on their income.

The amounts were charged along with your income tax, if due.

The limits for paying them were different from the income tax levels.

The class2 level was lower than the  clas 4 level . You may be die only  class 2 or you may have to pay both class 2 and class 4 , if your income was high enough. 

Only class 2 contributions counted for state pension. 

If the income was below these limits level to pay class2 contributions you pay them voluntary to safeguard your state pension. 

So, the figures she was quoting me were not the tax threshold but the NI one? I did keep asking if she was quoting the tax threshold, and she kept saying yes. When I actually spoke to the NI dept, they said I didn't owe any. I've paid in full for my state pension for all those years, so I don't think I need to worry....  

class 4 has nothing to do with your state pension. 

It is an additional charge that you need to pay if your earnings exceed these limits for each year. 

Until you pay it , interest will accrues.