jonah
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Post by jonah on Nov 22, 2017 15:18:30 GMT
Every year I have to ring HMRC to get my tax code changed (expat on NT contract). Every year I declare interest received over the phone and ask if i need to fill in a tax return, and each year I am told no! I followed a similar approach for the last few years, but apparently I've been too successful in P2P this year. SA form submitted online today and apparently I will be paying a noticeable amount of tax to HMRC to clear what I owe. Oh well.
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kermie
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Post by kermie on Nov 22, 2017 18:57:49 GMT
I did this last week and followed the HMRC guidance as ilmoro suggests - "Other UK income" The guidance is quite handy in that it is detailed per-box, and all the boxes are numbered to match the old-fashioned paper form. If only the same box numbers were available on the on-line system it would have been a whole lot more obvious!! Come on HMRC - it's not hard! |
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duck
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Post by duck on Dec 28, 2017 6:33:22 GMT
Please note I have no connection with the latest HMRC campaign.  |
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fasty
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Post by fasty on Dec 28, 2017 8:25:43 GMT
I filled in my online return up until the calculation page, then did a double-take and nearly wet myself  . - Because I had diverted such a large proportion of my employment income into pension AVCs for tax efficiency, my P2P returns and modest property rental income look large in comparison. - So now HMRC want not only lots of tax, but an additional half as much again "on account" for 2017-2018. Eeek! I'm happy enough to pay what I'm due, but I presume that I'm not missing a trick to defer payment until the following January like I'm used to? |
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Post by Deleted on Dec 28, 2017 8:31:27 GMT
sounds fine, you just make too much "consistent income" even though you may not have taken it as income.  |
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fasty
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Post by fasty on Dec 28, 2017 8:55:19 GMT
sounds fine, you just make too much "consistent income" even though you may not have taken it as income. Yes, I'm very lucky really! For this tax year I have reduced employment income even further, and started to sweep P2P income behind an ISA. So my payments on account will probably be too high. If this is true, I assume that I should have a much smaller bill next January. I should probably explore ways to use other allowances like dividends and capital gains.
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stevio
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Post by stevio on Dec 28, 2017 9:08:22 GMT
sounds fine, you just make too much "consistent income" even though you may not have taken it as income. Yes, I'm very lucky really! For this tax year I have reduced employment income even further, and started to sweep P2P income behind an ISA. So my payments on account will probably be too high. If this is true, I assume that I should have a much smaller bill next January. I should probably explore ways to use other allowances like dividends and capital gains. Maybe VCTs and the like are also worth exploring if you have a large ta bill to offset, maybe a company for your rental income or at least ensuring your claiming all the allowances possible on your rental income and carrying forward any previous years losses
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Post by Deleted on Dec 28, 2017 9:27:51 GMT
sounds fine, you just make too much "consistent income" even though you may not have taken it as income. Yes, I'm very lucky really! For this tax year I have reduced employment income even further, and started to sweep P2P income behind an ISA. So my payments on account will probably be too high. If this is true, I assume that I should have a much smaller bill next January. I should probably explore ways to use other allowances like dividends and capital gains. Yes capital gains is a good place to start
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fasty
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Post by fasty on Dec 28, 2017 9:30:33 GMT
Yes, I'm very lucky really! For this tax year I have reduced employment income even further, and started to sweep P2P income behind an ISA. So my payments on account will probably be too high. If this is true, I assume that I should have a much smaller bill next January. I should probably explore ways to use other allowances like dividends and capital gains. Maybe VCTs and the like are also worth exploring if you have a large ta bill to offset, maybe a company for your rental income or at least ensuring your claiming all the allowances possible on your rental income and carrying forward any previous years losses Thanks for the tips, stevio
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pom
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Post by pom on Dec 28, 2017 9:49:51 GMT
I filled in my online return up until the calculation page, then did a double-take and nearly wet myself . - Because I had diverted such a large proportion of my employment income into pension AVCs for tax efficiency, my P2P returns and modest property rental income look large in comparison. - So now HMRC want not only lots of tax, but an additional half as much again "on account" for 2017-2018. Eeek! I'm happy enough to pay what I'm due, but I presume that I'm not missing a trick to defer payment until the following January like I'm used to? On the bright side think how bad it would have been if you hadn't been shovelling into your pension, not least as a goodly chunk would presumeably have been at a higher rate!
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Post by Deleted on Dec 28, 2017 9:59:08 GMT
Yes capital gains is a good place to start If only there was a reliable way to make £11,300 capital gain each year.  Practise practise practise.
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moogman
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Post by moogman on Dec 28, 2017 21:39:28 GMT
So my payments on account will probably be too high. If this is true, I assume that I should have a much smaller bill next January. If you think your income next year will be less than the threshold needed for payments on account, you can apply to reduce/remove them. There's an option in the online tax portal to do this, or you can ask your accountant to do it for you.
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fasty
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Post by fasty on Dec 28, 2017 21:49:48 GMT
So my payments on account will probably be too high. If this is true, I assume that I should have a much smaller bill next January. If you think your income next year will be less than the threshold needed for payments on account, you can apply to reduce/remove them. There's an option in the online tax portal to do this, or you can ask your accountant to do it for you. Yes, I spotted that thanks. I did once question HMRC about an earlier request for payments on account, when the amounts were much smaller, and they removed it without any fuss, much to my surprise. Unfortunately, because I have manipulated the PAYE "day job" to provide a small proportion of my total income, payments on account appear to be now inevitable. Now I've got a handle on the calculations, I can check the approximate amounts involved, but haggling to get them reduced probably won't be worth it.
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fasty
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Post by fasty on Dec 29, 2017 11:19:45 GMT
Panic reduced  I hadn't spotted that the tax calculation produced during self-assessment didn't include payments on account that I had already made. Presumably this is taken into account after I submit the online return? |
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pom
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Post by pom on Dec 29, 2017 15:02:55 GMT
Panic reduced I hadn't spotted that the tax calculation produced during self-assessment didn't include payments on account that I had already made. Presumably this is taken into account after I submit the online return? Yes that can be quite alarming! I think at some point between now and payment date they send out a statement of account which says what you really owe....and also if you login to the payments section it should have all the correct figures (once someone's fed in the tax return calcs anyway).
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I hadn't spotted that the tax calculation produced during self-assessment didn't include payments on account that I had already made.