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Where Taxpayers and Advisers Meet

Search found 1410 matches

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by Lambs
Sat Apr 04, 2020 2:15 pm
Forum: Income Tax
Topic: Adjusted Net Income & Employer Pension Contributions
Replies: 6
Views: 1016

Re: Adjusted Net Income & Employer Pension Contributions

D, No, for the same reasons as laid out in my original post - ITEPA 2003 s 308. Strictly, most salary sacrifice arrangements ARE taxable by reference to ITEPA 2003 s69A, as introduced by FA 2017. However, ITEPA 2003 s 228A specifically excludes employer pension contributions made under the aforement...
by Lambs
Fri Apr 03, 2020 2:44 pm
Forum: Income Tax
Topic: Adjusted Net Income & Employer Pension Contributions
Replies: 6
Views: 1016

Re: Adjusted Net Income & Employer Pension Contributions

D, This is a good technical question. Most people "instinctively know" that employer contributions are not taxable, but not necessarily why. In fact for most people they would be taxed under the broad scope of the earnings provisions if it were not for specific exclusion. An employer pension contrib...
by Lambs
Sun Mar 29, 2020 5:32 pm
Forum: Income Tax
Topic: Personal allowance / dividends / additional income
Replies: 11
Views: 1587

Re: Personal allowance / dividends / additional income

N, You will "not benefit" only if your effective / marginal tax rate exceeds 100%. In other words, for every £1 of additional income, your tax bill rises by £1 or more. The effective tax rate around £100k is punitive - c60% - but it does not go higher than that. This should be clear from the figures...
by Lambs
Tue Mar 24, 2020 11:36 am
Forum: Income Tax
Topic: Personal allowance / dividends / additional income
Replies: 11
Views: 1587

Re: Personal allowance / dividends / additional income

For 2019/20: Assuming - Salary of £114k, tax deducted to cover only salary through PAYE = £35,900 Rental income of £6,276, with no expenses such as mortgage interest to set against it Dividend income of £35k He will be an Additional Rate taxpayer as he will go a little above £150k in total income. T...
by Lambs
Sat Mar 21, 2020 9:44 am
Forum: Income Tax
Topic: Personal allowance / dividends / additional income
Replies: 11
Views: 1587

Re: Personal allowance / dividends / additional income

N, This is impossible to answer until we know the extent of his dividend income, and you have addressed the point about whether the £523/month for the barn is pure profit or gross income from which further rental costs might be deducted. If the latter then you will need to give us a figure either fo...
by Lambs
Fri Mar 20, 2020 7:13 pm
Forum: Income Tax
Topic: Personal allowance / dividends / additional income
Replies: 11
Views: 1587

Re: Personal allowance / dividends / additional income

D is of course correct but it is any easy mistake for a novice Self-Assessing taxpayer to make. If he is already making payments on account this suggests that he may have had pretty substantial dividends in the 2018/19 tax year because generally, where most of your income is taxed through PAYE, you ...
by Lambs
Fri Mar 20, 2020 6:22 am
Forum: Income Tax
Topic: Personal allowance / dividends / additional income
Replies: 11
Views: 1587

Re: Personal allowance / dividends / additional income

N, Based on the information you have provided his Self Assessment liability will be based on: Further forfeiture of Personal Allowance Tax on rental profit on barn, net of any costs incurred to let it out (such as heat / light, repairs, insurance, and an appropriate element of mortgage costs if appl...
by Lambs
Tue Mar 10, 2020 1:16 pm
Forum: Income Tax
Topic: Freelance tax advice - total newbie
Replies: 7
Views: 898

Re: Freelance tax advice - total newbie

Why indeed? It now costs HMRC very little to process a tax return or to set up a tax file. So it would rather make everyone file a tax return - such as company directors who do not draw a salary or other remuneration from that company. It has been told several times that company directors, just like...
by Lambs
Tue Mar 10, 2020 8:38 am
Forum: Income Tax
Topic: Freelance tax advice - total newbie
Replies: 7
Views: 898

Re: Freelance tax advice - total newbie

M, You have a legal obligation to notify HMRC if you are chargeable to tax in the UK. Your post does not cover your nationality or tax residence status but assuming you are a UK citizen resident in the UK, then if your total taxable income is less than the Personal Allowance, you should have no pers...
by Lambs
Fri Mar 06, 2020 10:29 pm
Forum: Capital Gains Tax, CGT
Topic: NRCGT return
Replies: 266
Views: 203443

Re: NRCGT return

God, no. The (wo)man's on a roll. Veritably, the Duracell Bunny of tax practitioners. More power to your writing elbow, Good Sir (or Madam).

VB,

Lambs

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