Tax Systems Share Discussion Threads

[goatherd] 17/4/2014 11:28

I wonder why not an 84% decline?

[miata] 17/4/2014 11:07

New research from accountantS PwC has found that only 16 per cent of those aged between 50 and 75 now plan to buy an annuity. The firm said that this could lead a 75 per cent decline in the UK annuity market.

[zastas] 15/4/2014 13:04

Fantastic, Miata. Priceless officialdom.

[miata] 15/4/2014 11:22

If you are about to complete your tax return, remember some responses are unacceptable to HMRC!

In response to the question; "Do you have anyone dependent on you?" a man wrote: "2.1 million illegal immigrants, 1.1 million crackheads, 4.4 million unemployable Jeremy Kyle scroungers, 900,000 criminals in over 85 prisons, plus 650 idiots in Parliament, and the whole of the European Commission".

HMRC has returned the Tax Return to a man in Evesham after he apparently answered one of the questions incorrectly. HMRC stated the response he gave was unacceptable. The man's response to HMRC was: "Who did I miss out?"

[opodio] 11/4/2014 10:13

Miata

Do children get an allowance? Was considering buying them a cheapo ground rent and registering in their names - would income have to be added back to my tax return?

[red nutter] 10/4/2014 10:35

Thanks for replies - I think I need some prof advice

[miata] 09/4/2014 15:36

You are entirely in order and I welcome your useful comment.

I agree he is obviously reluctant to spend money (and perhaps also invest the time to understand payroll regulations), but advice can often save more.
For example in his position I wouldn't be paying 40% tax - either via pension funding or future year spreading.

[goatherd] 09/4/2014 15:33

Indeed - I think you do it brilliantly!

In this case I thought he might learn a bit doing it himself - and he is clearly reluctant to spend money! Sorry if I was out of order.

[miata] 09/4/2014 15:28

You might consider that anyone asking questions on here like
Is it easy to make salary payments myself for £7956 or should I employ a payroll company?
is in need of advice that a payroll bureau can provide; for example on the deductibility of expenses for travel to/from work on short-life contracts.

Obviously it is difficult to assess what level to pitch advice at on a BB.

[goatherd] 09/4/2014 15:13

Miata,

I have never used it, but one of my children has, the free HMRC payroll facility for employers with 9 or less employees. That might be suitable for rednutter?



scroll down to "Basic".

[miata] 09/4/2014 14:46

1) You could hold the excess in the company and pay it out in future years (and make contributions to a SIPP to get tax relief). Salary qualifies for pension relief, dividends do not.
2) Yes, you can pay yourself a large amount in September.
3) Yes you have to register as an employer for PAYE with HMRC.
4) Well you could use some software (eg Sage payroll) and DIY if you have mastered the required reading (see earlier post 1218) but somehow I don't think you will have.
5) No not unless you pay yourself a large enough salary to be chargeable for and pay NI (ie over £7,956).

[red nutter] 09/4/2014 14:35

Hi,

2014/15 - I own a ltd company and plan to extract a min salary of £7956 and dividends of £30,518 (£33909 x 90%), £7956 + £33,909 = £41,866
I do not want to pay any NI or tax as less hassle. My role is not secure for whole tax year meaning I could be in a PAYE job later in tax year.

Questions:-

1) If I want to take in excess of £41866 basic limit – should I take as dividends? I assume yes as pay 32.5% on dividends rather than 40% income tax

2) Can I wait till Sept to decide whether I want to pay a salary and then make payments from Sep 14 to March 15 for min salary amt

3) Do I have to register as an employer if I just make the payments to myself as min salary and then when I make my self assessment return it would all be included in there?

4) Is it easy to make salary payments myself for £7956 or should I employ a payroll company?

5) Will my pension and NI benefits stay intact if I take only a minimum salary for the year?

Thanks
rednutter

[miata] 07/4/2014 08:27

No. The penalty is a percentage of what we call the 'potential lost revenue'. Potential Lost Revenue (PLR) is the amount that arises as a result of correcting an inaccuracy in a return or document, an incorrect repayment or an incorrect claim.

[smurfy2001] 06/4/2014 22:50

If l dump all my flat repairs (new bathroom, kitchen, carpet, plastering etc) on the tax form will they check it? That would help me so they can say no it's not allowed.

[miata] 06/4/2014 20:33

HMRC Self Assessment tax returns for 2013-14 are now online.

[miata] 03/4/2014 12:25

Can I sell a share (non-ISA) and then buy the same amount in an ISA without being liable to CGT on the sale?

Only to the extent of your annual exempt amount (gains of £11,000 in 2014/15) each year. (See header table for other years).

[metier9] 03/4/2014 12:08

Hey MIATA,

So as an investor I'm best to use the approx. £29k net dividends and the CGT allowance every year.

Can I sell a share (non-ISA) and then buy the same amount in an ISA without being liable to CGT on the sale?

I recently came back to the UK so most of my shares are outside an ISA and I am a whole generation away from SIPP drawdown etc...

Thanks,

[skyship] 03/4/2014 07:38

BT - "I got confused as sky talked bout flexible drawdown next year and referring to the 12k limit...i wonder if he realises that the 12k is now as he is due for a review."

No, didn't realise I could switch to FD this time around without that £12k requirement. I qualify on that front; but only just since my State Pension kicked in last November. SIPP drawdown income doesn't apply of course!

[badtime] 02/4/2014 20:45

They are the company i use....one of the questions i asked them referred to the fact i have just had a review and wouldn't then be due for another one until 2017...but that the payment falls into 2014/15 tax year...i asked that in view of the new anticipated rules would i be able to take more than the current 'capped' amount in 2015/16....they stated they expected that would be okay, but this was one of the things that still needed to be agreed upon

[miata] 02/4/2014 20:30

AJ Bell Youinvest (formerly SIPPdeal) sent out a fairly detailed analysis.



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[miata] 02/4/2014 20:19

You are correct. From April 2015, all restrictions on access to your pension pot will be removed (except tax). I suppose we could refer to the stages as 'drawdown', 'flexible drawdown' and 'fully flexible drawdown'.