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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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Product in exchange for charity donation
Hi I entered a mini competition whereby I received an object in return for a set donation and that money was paid directly to the person's chosen charity (a well known one). For self assessment purposes as a sole trader, does that still count as a charity donation? Thanks
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Which tax year do I declare this in?
I get some money into my current account every month from an NS&I bond. It's usually paid to me on the 5th, but as the 5th is a Sunday, it "came in" on the 2rd (despite this being a bank holiday). However, looking at the transaction in my current account, it's dated Tues 7th April at midnight. Presumably the payment…
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Choosing to pay over the annual allowance
Curious how common this is. Example scenario: 200k earner pays 150k into SIPP. Tax relief is payed back through SA. Without tax relief there is a 40% plus entry penalty as well as the eventual 40% plus on withdrawal. However while inside the SIPP there is no CGT (24%) or DT (36%). 2 CGT events offset the tax entry penalty.…
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Is this a successful business
When assessing a limited company's accounts how whst info do you look at to assess that? How about this company?
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Appeal against inclusion in MTD?
I have a feeling this might be wishful thinking but….HMRC have roped me into MTD because a one off payment last year kicked me over the MTD threshold for property income. My property income has been way below the threshold for the last 10 years and will be again this tax year. I'm not self employed. It looks like I'll have…
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Tax calculation
Can someone help me understand why dividends seem to be taxed at 20% rather than 8.75/33.75%? HMRC: Pay from all employments £49,318.00 Dividends from foreign companies £548.00 Interest from UK banks, building societies and securities etc £415.00 Dividends from UK companies £428.00 Total income received £50,709.00 minus…
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What counts as income for the purposes of the starting savings rate allowance?
I have a question about how the starting savings rate allowance is affected (or not) by different kinds of 'income'. My understanding is as follows. 1. If I am a basic rate taxpayer (20%), I can receive up to 1000 GBP in interest on savings each year (the personal savings allowance) without being taxed on it. Anything…
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Inheritance tax
A married couple have savings of £350k each and a jointly owned property worth £350k. One dies and leaves everything to the other, is there any IHT to pay? When the other one dies therefore having £700k in savings and a property worth £350k, is there any IHT to pay. I know there is an allowance of £325k and also of £175…
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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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Stopped self employment but still receiving MTD letters
Morning all , wife stopped self employment in Jan 2026 and filled in the online stoping self employment form on gov website but still receiving letters ref MTD .Appreciate it’s getting close that MTD starts for many soon but don’t want my wife to receive a penalty or similar for not notifying of change in circumstances .…
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Inheritance Tax Annual Exemption Question
Good evening. My mum and dad want to gift my sister a total of £4,500, which is more than the £3,000 annual exemption. Am I right that they both get £3,000 annual exemption, so technically have £6,000 they can gift between them (up to £3,000 each), without it falling into potential Inheritance Tax later down the line? (As…
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Wrong tax code overpayment
I have just looked at my March pension figure on my personal tax account which was posted today. Even though it is paid on the 28th of the month it is generally submitted to HMRC in the first week of each month. The tax deducted was way above what I expected so I contacted my pension provider who said my tax code had been…
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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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Reclaiming US tax from the sale of a Disney timeshare
Hi Does anyone know whether you can reclaim tax from the sale of a DVC holding? I've checked the original paperwork and the amount we paid in dollars is more than what it sold for in dollars. The question was asked when in the process of selling, without an answer. UK based, never been employed in the US or have a US tax…
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26/27 code
I have a DB pension in payment of around £3,300 a year. For the upcoming year, this has been given a code of K1119. I think this is about right, but was wondering how much of it will be taken in tax each month. It would appear to be most of it. That's fine, if it means I don't have to do simple assessments, but I thought…
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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…
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Capital gains tax generated to survive unemployment
I was unemployed for the totality of 2025 and to pay my bills, I had to sell-off some investments which generated capital gains. (to be paid before 2027) Are there exemptions for unemployed people in these circumstances? (unlikely?) Alternatively, are HMRC understanding/flexible when it comes to paying the owed tax, as…
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Inheritance tax interest
Hi all We'll be making our 2nd IHT instalment at the end of March. Then, hopefully by the end of April(ish) the house sale will go through and we'll be able to pay off the remaining £150kish. My question is about how the interest is applied. We'll be paying around £15k interest on top of the instalment amount in March,…
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Pensions & IHT from 2027
From 2027 the new rules on pensions will mean (on current numbers) a potentially large IHT bill. My drawdown fund is substantial so my question is: If I buy an annuity with a guarantee which potentially pays a lump sum upon my death, is that lump sum still classed as 'pension' or will it be classed as cash? The purpose of…
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24/25 tax year PAYE rebates - still outstanding?
Hello Wanted to know if anyone has received their P800 letter from HMRC for 24/25 tax year as a PAYE employee? The guidance online says they're usually sent out between June and November but for 23/24 they extended to March 2025. None of the options available to speak or chat with HMRC seem open to my circumstances, so if…
