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Cutting Tax: Discussions that will help you
To help you find the Cutting Tax threads quicker and easier we're collating our previous sticky/pinned threads into one single post. Cutting Tax board: Tax instructions - please read Useful Websites TaxCalc alternative? How does the Taxman Know? Inheritance Tax Planning Useful Tools to Help With Taxes Washing Uniform at…
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HMRC self Assessment calculator said no tax: invoiced for late payment
I earned less than £1000 as a sole trader during 2024/25. I believe I used the official online calculator. All over it said I would not need to submit a return nor pay any tax. I was shocked to have just received a statement/late payment invoice for £100 and after some back and forth ( I was not rude but I must have…
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Capital Gains & the annual exempt allowance
I know there are lots of threads about this already, but most get bogged down with incorrect opinions or misunderstandings. So, I thought it might be useful to attempt another one. Any single personal possession (ie. not something you purchased with the intention to sell on) that you sell for less than £6000 does not…
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Should I Register as Self-Employed?
I'm a full time employee, just over the higher-rate threshold, and taxes are deducted using PAYE. However, I also run a website and sell digital downloads via a third-party. The income from this is about £1600 per year, so I know I need to declare this. However, there are a lot of costs involved which mean the profit is…
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How much to pay into SIPP
On my payslips my taxable pay includes a taxable private medical insurance benefit. When I am working out how much I can pay into my SIPP can I just calculate 80% of my total taxable pay or do I need to exclude the private medical insurance benefit amount? Payments into my work pension were by salary sacrifice.
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Paying myself from a business in a tax efficient way - HELP please!
I am one of four directors of a social enterprise (CIC) that has no employees. Three of us work for the business in a self-employed capacity and invoice the CIC for fees and expenses. We also work for other clients, not just the CIC. The CIC is limited by guarantee, not shares, so we do not take any money from it unless we…
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Using a deed of variation to reduce the amount of a previous gift
My mother and I have been considering a deed of variation on my father's will. Part of the reason for this is to enable my mother to help me out financially now rather than after her passing and of course if coming from my father, the amount would be not be subject to the 7 year rule - while the total value of the Estate…
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New Tax Code number 26/27
My last year code was 175L and the new year will be 124L. It tells me I will pay £150 more tax for the year. I'm confused as to the new code. I was expecting a way of seeing how they claimed the winter fuel allowance back but I'm thinking this shift is not it. The blurb on the website mentions "Minor company benefits, like…
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Expenses, self assessment and change in work circumstances with more time in the office
I am a contractor, use an umbrella company and complete a self assessment tax return. For the last 5 years I have predominantly worked from home, and when required on site I have claimed the expenses for this on my self assessment tax return. In all cases, the site was far enough away to require an overnight stay. I've…
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Winter Fuel Payment charge?
Hi, I have an entry under Deductions for current tax year ends 5th April 2026 which I don't understand. "Winter fuel payment charge - based on a charge of £(0)" £968 I expected to repay my WFA as income over the threshold, but it wasn't £968…..
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Vat thresholds - Clearing out stock .
A quick question about VAT thresholds . Since the start of the year I have turned over 30k which is alot higher than I normally do ( I try to stay at around 7k a month ) , mostly due to trying to clearout alot of my items which I have had either too long or overpaid on so is being sold at cost ( sometimes less ) . Every…
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House swap
Friends lived together many years, never married. Split up a few years ago, they own the house she lives in together and they bought together a cheaper flat that he lives in. Both properties are owned as joint tenants.They’re now ready to finalise the financial split. What implications are there if they just transfer…
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Capital Gains Tax .. imperfect info
Hi, I bought a property in 2004 ( a holiday home). I sold it in February this year. Im trying to do the CGT return for HMRC but am stumped on one thing. I bought the property for £109,500 . I can find out how much stamp duty I would have paid but I’ve lost the invoice for how much I paid in conveyancing fee. (Solicitors…
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HMRC late calculating 24/25 tax
Hi I am still waiting for HMRC to calculate my TAX for 24/25. When I log into HMRC they say still not calculated. As I think they owe me money, what can I do>
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Informing HMRC of SIPP contibutions
I need to inform HMRC of my SIPP contributions for 24-25 tax year for the purpose of claiming tax relief as a a higher rate payer. For my gross taxable income, is it okay if the interest earned on my savings change after the banks report it to them? The reason I ask is that I know what interest I think I've earned based on…
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Employer overpayment returned. How to get HMRC to understand.
My employer paid me an extra £900 which I returned via an invoice they raised. However my ytd taxable income according to my employer still includes the overpayment. No doubt HMRC will therefore think this is part of my taxable income and want me to pay income tax on it. The employer is a large govt department who are not…
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How to prepare for MTD ITSA from April 2026?
Hi everyone, I’ve been reading about Making Tax Digital for Income Tax (MTD ITSA) starting from April 2026, and I’m a bit confused about how to prepare for it. Do we need to submit quarterly updates manually, or is there software that makes the process easier? Also, what’s the best way to track income and expenses to stay…
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Film set income
I am a Newbie, Hello to all and what a comprehensive website. I will receive £5000 from a film company for their use of my home. How will HMRC categorise this and can I claim any reduction in tax for staying with a family member while out of my home? For example I have travel expenses and will contribute to their household…
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Interest Tax Allowance
I'm on the cusp of 40% tax so just wanting to check I have the right understanding of the interest income tax free allowance. My understanding is that the point that it tips from £1000 down to £500 is £50270, so I need to get my taxable income below this amount (through pension contributions) Have I got the right end of…
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BR tax code on SIPP
OH has just made her first SIPP withdrawal, UFPLS, and received a notification from HMRC of a BR tax code for future withdrawals. That seems correct since her SP and NHS pension more than use up her tax allowance. My question is whether the provider will take a straight 20% from her taxable SIPP withdrawals no matter which…
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Potential rowback on tax on inherited SIPPs
From the Telegraph yesterday, Mike Warbuton on "It's finaly becoming clear how the new pension death tax could work": Very recently included in the Finance Bill is a clause which amends the current income tax rules to give relief to beneficiaries of a pension fund which has been caught for inheritance tax. The wording is…
