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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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Gifting Half the house and IHT
Back in 2004 my mother gave me half the house. The Land registry shows it is now joint owned. There is also a letter from the solicitor confirming the transfer is complete and that we are tenants in common with equal shares. We both lived in the house until her death. Is that enough proof for HMRC?
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HMRC Late Payment Self Assessment Penalty Notice
I was late in making payment to HMRC for what I owed through my self assessment. It was due on 31st January 2026 and I paid on 2nd February. I called HMRC and asked them if I would be charged a penalty for this and they said yes £100. I asked how will I know when I have a penalty, do I need to keep checking my online tax…
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HMRC - Lack of communication and income tax due.
I have tried to register with HMRC but all efforts have so far failed. I've tried writing to them but no response. I've tried ringing, but they simply keep me hanging on the line after numerous automated questions to put me through to the correct department, then the endless wait to speak to a human being, and the wracking…
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Salary/tax reduction advice
Good afternoon all, I was wondering if someone could please help me with some accounting advice to help me lower my annual income to prevent me losing my free childcare allowance. I started a new job towards the end of last year and believe my combined earnings between new and old employers will take me over the £100k mark…
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CGT - Private Residence Relief when moving into care home
Hi, Mum and Dad own their property outright as tenants in common (equal share). Dad has moved into permanent/long-term residential care, mum continues to reside at the property. I am interested to understand dad's capital gains position as the property is no longer his primary residence. I understand from the tax manuals…
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IHT - Normal Expenditure all or nothing?
How would HMRC treat the Normal Expenditure out of Income exemption (IHTM14231) in the following example: Regular payments of £10k/pa are set up, however it turns out that when claiming the exemption (when the time comes), there was only £8k of excess income and so £2k had to come out of capital (i.e. 8k being the…
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Update savings income current year
The amount of interest estimated by the revenue is higher than the actual so I have reported the correct figure via my online account. I have now received a letter from HMRC asking me to itemise the calculation with account details. I cannot see where to do this online and the letter doesn't suggest a method. Can anyone…
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IHT - How to make the 25% tax-free part of an AVC be classed as income?
From my reading it's not too clear what exactly HMRC classes as 'income' when dealing with IHT, however I understand that it's not the same as how HMRC classifies income for income tax purposes. Taking the 25% as one large lump sum I would imagine would not be seen as income from HMRC when assessing the against IHTM14250.…
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Investment Bonds and Trusts for IHT planning
With the changes to how DC pensions are treated for IHT purposes and the growth in house prices and stock markets more people/estates will be facing an IHT bill. So maybe people will discuss the pros and cons of onshore investment bonds/life insurance and the range of trusts that can be used as wrappers.
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Add savings interest please
Please could "savings interest" be added to the calculator? I feel this is a very significant option, given the whole raison d'être for this site is based on maximizing savings. This is such a huge factor, I've no idea why tax calculators don't consider it. It's also very obscure. I found out recently that HMRC will add…
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Business Mileage Claim?
Hello, my company provides me with a personal car allowance and also provides me with a fuel card for both business and personal use. The company doesn’t deduct any costs from me. I record my annual business mileage. The company deducts my business mileage from my total annual mileage and provides a P11D to HMRC for…
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CGT calculation and retrospective valuations
Hi all, I'd appreciate some help with a forthcoming house sale. My family home is being sold shortly and there are complicated CGT questions I think I know the answer to, but would appreciate some guidance. The property was purchased in 1985 for £45,000. My parents owned the house as tenants in common with an equal half…
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Wrong tax code and repayment options
Hello, I'm looking for a recommendation on a change of tax code. I am a full-time employee and all my payslips and taxes are though PAYE. In March 2024 I paid 3.5k£ into a SIPP (and the correct grossed up top-up of £875 was then added by HMRC the following months). Probably as a consequence of this (since nothing else…
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Whose gift is it anyway?
If parents make a gift of money to a child, is it demeed to have come solely from the parent whose bank account the money is transferred from (thinking of things like seven years survival for IHT)? If you want it deemed 50/50 from each parent, is it necessary that it either comes from a joint account or that half is…
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Timing of Annual Tax Summary
Does anyone know when this drops onto the gov tax platform for 2024/25? Specifically the summary with breakdown as it is not on there yet. You can view the top line tax paid but thought after 5 months it may have dropped on. Not a first world problem but just wondered....
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BIK on a company car that's a company "asset".
Hi. I am trying to get my head round potential tax implications for the company car I have which is deemed as a "company asset" as it had adaptations for emergency response. I know I have to pay BIK which I believe is 20% of the cars value, less my contribution and then 40% of that = 1 year tax. My questions is, is this…
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hmrc self assesment (tax returns) processing times
Hi All I did the dreaded tax return yesterday (31st) and finished it by 12:30pm (lunchtimeish) so was about 12 hours before the deadline. When I logged in it informed me I owe 11p from a previous year. I filled it all in and submitted it. This time I owed about £250. I tried to pay, but it still said I owed 11p, which, of…
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HMRC owes me money from 2018-9 and 2019-20. Should I demand interest from them?
HMRC sent me a letter saying they owe me some historic tax credits (total approx £650) for the years ending 2019 and 2020. They've asked me to phone to confirm my bank details so they can repay this. Am I right in expecting they should pay interest on this? I would like to speak to them but go armed to discuss if (and…
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Tax on state pension in first year - again!
I submitted my SA online earlier this month and HMRC have
sent a letter stating they have changed the SP figure (increased by one week of
pension income) for the year based on their (presumably DWP provided) records.
Consequently they have increased the tax
due by Jan 31st (also increasing the tax on account for next…
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Tax Codes explained
Found below in news feed today, thought some may find useful… ***************** A tax code is a series of numbers and letters used by employers or pension providers to work out how much tax should be deducted from your pay or pension at source. Anyone in employment or with a private pension will have one. Making sense of…
