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Savings and Investments thread
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Good to know but the onus would still be on me to report any income to HMRC.golfaddick said:
Making tax digital only comes in this tax year (26/27) for those with net profit in excess of £50k. It then comes in next tax year (27/28) for those with net profit in excess of £30k.LargeAddick said:The above is the sort of thing I'm looking to avoid. Since retiring in June 2022 I've been returning to the firm on an ad hoc basis to cover for my successor when he's been on holiday/ill. Last tax year I earned about 4k and after using part of my tax free allowance paid about £400 tax. I am paid through the company payroll so taxed at source.
On 1st April the firm were bought out. The new firm still want me to help out but want me to invoice them for any hours worked and not put it through the payroll meaning I'm liable for reporting it to HMRC. I'm dead against that as once I start doing so won't HMRC want me reporting quarterly under the new making tax digital reporting. And once I start doing that I'm worried I'll be stuck doing that for life. I'm happy having all my income taxed at source and don't want the hassle. I'm also not sure why the firm can't or won't put it through the payroll. They have a number or part time staff and I'm just part, part time. Think I'll avoid the hassle and just jack it in.
If you earn under £10k you wont be affected for a good few years yet.0 -
I have to allow for what 'goes' into her works pension (DB), so I effectively pay in 62% of her salary into her SIPP, that gets tax relief (basic rate) taking it to around 78% of salary, her DB is usually around an equivalent of 18% so gives a few % leeway.redman said:
Paying 100% of her salary into her pension. If you literally did this she wouldn't be getting any tax relief on it would she? But when she draws it will become taxable. Without knowing the full details isn't it wise to only pay in above the tax free element?Rob7Lee said:Thanks @golfaddick
I pay a fair amount each month into her pension currently (basically so that 100% of salary goes into pension inc her works pension, she earns less than £60k by some margin!) and would continue with those amounts so shouldn't fall foul of recycling. Trying to get hers up as high as possible to balance out taxation when we both start drawing.
At some point we'll need to start transferring some monies to the children (I say children, 23 & nearly 26!) especially as next year pension pots will form part of an estate. Works gone a little too well of late so income has grown quite a bit, plus I wasn't expecting to have so many employee shares, that whilst in long term plans start to mature in 4-5 years.
First world problems.....
i.e. if you earn £12.5k per annum (and lets assume no works pension) and therefore pay no tax, you can actually pay in 10k to pension and it will get £2.5k added by the government as tax relief. You don't only get relief on your taxed element of your income at that level. Same as someone who doesn't earn any money can pay in £2,880 and it gets topped up to £3,600 despite having paid no tax.
Yes when she draws it will be taxable, although she will have 12,570 tax allowance until state age to use up plus of course the 25% tax free. She has one DB scheme that pays out from 60 but that will be pretty small (about £4k a year currently)1 -
I've had my temper tested and my head bent off around CGT
I had an employee share scheme mature last August, for the first time in over a decade I had made money but instead of immediately selling the shares and (in my head) putting myself in the firing line for CGT I held onto them with the intention of transferring them into an ISA run by the same people who administer the company scheme. A bit of the small print I neglected to read was the 90 day rule
So I've now bitten and lost a tooth on the bullet and sold the shares which are now over the CGT pathetic limit of 3k to lump the residual cash into the chaos I am doing with my S&S ISA. Ive never done a self assessment and I'm not the type to try my luck with HMRC maybe not coming after me because I am not Starbucks.
So how the shit do I declare this modest profit honestly on my virginal self assessment, I've had 4 goes at it and I'm not even sure I'm selecting the correct first option
If someone could tell me this before I drive up to Downing Street and throw a load of wet shit at Rachel Reeves I will be eternally grateful0 -
Number 3. 'Tailor your return' - there's a section/questions:Carter said:I've had my temper tested and my head bent off around CGT
I had an employee share scheme mature last August, for the first time in over a decade I had made money but instead of immediately selling the shares and (in my head) putting myself in the firing line for CGT I held onto them with the intention of transferring them into an ISA run by the same people who administer the company scheme. A bit of the small print I neglected to read was the 90 day rule
So I've now bitten and lost a tooth on the bullet and sold the shares which are now over the CGT pathetic limit of 3k to lump the residual cash into the chaos I am doing with my S&S ISA. Ive never done a self assessment and I'm not the type to try my luck with HMRC maybe not coming after me because I am not Starbucks.
So how the shit do I declare this modest profit honestly on my virginal self assessment, I've had 4 goes at it and I'm not even sure I'm selecting the correct first option
If someone could tell me this before I drive up to Downing Street and throw a load of wet shit at Rachel Reeves I will be eternally grateful
If you disposed of any chargeable assets, or had any chargeable gains, or you wish to claim an allowable loss, or make any other claim or election, do you need to complete the Capital Gains section? Please check help before selecting
Selecting yes opens up that section on your return.3 -
I assume you know that a DB scheme is valued differently for Annual Allowance purposes. It's not based on what goes in but by how much it grows year-on-year.Rob7Lee said:
I have to allow for what 'goes' into her works pension (DB), so I effectively pay in 62% of her salary into her SIPP, that gets tax relief (basic rate) taking it to around 78% of salary, her DB is usually around an equivalent of 18% so gives a few % leeway.redman said:
Paying 100% of her salary into her pension. If you literally did this she wouldn't be getting any tax relief on it would she? But when she draws it will become taxable. Without knowing the full details isn't it wise to only pay in above the tax free element?Rob7Lee said:Thanks @golfaddick
I pay a fair amount each month into her pension currently (basically so that 100% of salary goes into pension inc her works pension, she earns less than £60k by some margin!) and would continue with those amounts so shouldn't fall foul of recycling. Trying to get hers up as high as possible to balance out taxation when we both start drawing.
At some point we'll need to start transferring some monies to the children (I say children, 23 & nearly 26!) especially as next year pension pots will form part of an estate. Works gone a little too well of late so income has grown quite a bit, plus I wasn't expecting to have so many employee shares, that whilst in long term plans start to mature in 4-5 years.
First world problems.....0 -
Yes I'm aware but it's very much an estimate! For her live one I get from them (although post event/tax year), although estimate myself based on another years service (and pay review), for her Barclays it's just the annual 'inflation' increase.golfaddick said:
I assume you know that a DB scheme is valued differently for Annual Allowance purposes. It's not based on what goes in but by how much it grows year-on-year.Rob7Lee said:
I have to allow for what 'goes' into her works pension (DB), so I effectively pay in 62% of her salary into her SIPP, that gets tax relief (basic rate) taking it to around 78% of salary, her DB is usually around an equivalent of 18% so gives a few % leeway.redman said:
Paying 100% of her salary into her pension. If you literally did this she wouldn't be getting any tax relief on it would she? But when she draws it will become taxable. Without knowing the full details isn't it wise to only pay in above the tax free element?Rob7Lee said:Thanks @golfaddick
I pay a fair amount each month into her pension currently (basically so that 100% of salary goes into pension inc her works pension, she earns less than £60k by some margin!) and would continue with those amounts so shouldn't fall foul of recycling. Trying to get hers up as high as possible to balance out taxation when we both start drawing.
At some point we'll need to start transferring some monies to the children (I say children, 23 & nearly 26!) especially as next year pension pots will form part of an estate. Works gone a little too well of late so income has grown quite a bit, plus I wasn't expecting to have so many employee shares, that whilst in long term plans start to mature in 4-5 years.
First world problems.....0 -
Long story short, I also got hit by this... they adjusted my PAYE tax code to claw back tax on interest earned in previous year. Couldn't/cant find any info when I log in re: how they calculated how much I owe/how they came up with the new tax code.PragueAddick said:
I think i know what the OP is referring to, as they are trying the same thing with me. In the last couple of years high interest rates have meant that cash rich boomers have earned decent sums from savings accounts. The banks are dutifully reporting the interest to HMRC, who then use it to make hostile overclaims for tax. In my case they have been doing this despite the fact that they have been acknowledging my tax non-resident status since 1996, and indeed have a confirmation from the Czech Tax Office that I am , declaring interest on those bank accounts here. Furthermore in 2023 they confirmed in writing ( I was thinking of framing it) that they agree I no longer need to fill self-assessment. Yet suddenly in the last months I started getting demands to self-assess and gave me estimates of my taxable revenue. At around 15k this coincided very closely with my UK bank interest. And why did I suddenly start getting these demands? Because back in late July I had the temerity to want to access my SIPP gross (as tax NR people are allowed). But H-L need HMRC’s form DT-individual in order to pay me gross. 9 months later I still dont have it. Three weeks ago I managed to get through and was assured by a nice Glaswegian lady that it really is in process -she acknowledged the delay - and I would get it within 10 working days. So far nothing since then.golfaddick said:
This.SE9toDA2 said:@ralphmilne have you done a self assessment for the relevant tax years
No idea why HMRC are calculating your tax for you under these circumstances.
Also, why are you receiving interest that you pay tax on ? Even at 4% you can have £25k in cash. Then there is your annual ISA allowance (£20k) and then other tax free savings vehicles such as Premium Bonds (£50k). Thats almost £100k in cash assets before you start paying tax on interest.It’s another example of the absolute state of that operation and how they harasss ordinary people for easy pickings while continuing to be useless in tackling the big tax avoiders.@ralphmilne the specifics of my case are a bit niche but as I read your post, you have indeed completed self- assessment?My advice would be, first use this thread to test whether they are indeed at fault (e.g you have completed SA forms) If so, try to call them, with your paperwork at hand. The wait time is notorious, but try to call when they first open the lines, you may wait for only 20 mins😉 I have at least found that the people answering those lines are pleasant and try to be helpful, but unfortunately they are basically call centre people and you will be put on hold while they talk to someone else to get answers…and sometimes the line cuts out. Which mag. and Martin Lewis suggest that if the issue is getting messy you are entitled to ask for the person’s name and to inform them that you (too) are recording the call. There is also an official complaint system but that would only be relevant if they keep on telling you one thing and do another, or nothing.
As everything has now been stowed in tax-free spaces, I am anticipating/assuming my PAYE code will now return to normal in this new tax year. Will find out when I get paid in a couple of weeks!0 -
The long story short is over a number of years when cash interest rates were very low, I used my annual allowance on a stocks and shares ISA. On retirement, I took a significant cash lump sum, which over the years I have been moving into a Cash ISA. In 2023 I probably had over £100,000 outside an ISA, an earned over £5,000 in untaxed interest. In 24,25,26 I have moved £60,000 into ISA,s. Given my family around £20,000 over that period. So I now have less than £20,000 not in a Tax free position. Yet, my Tax code is calculated that I had over £6,000 of Tax free interest in the last 3 years. Including a tax code of £6,000 for this year when I estimate it won’t be £1,000. So with £500 allowance, I should be taxed on £500 (Tax for the year at 40%) £200. Yet HMRC are taking £200 a month.golfaddick said:
This.SE9toDA2 said:@ralphmilne have you done a self assessment for the relevant tax years
No idea why HMRC are calculating your tax for you under these circumstances.
Also, why are you receiving interest that you pay tax on ? Even at 4% you can have £25k in cash. Then there is your annual ISA allowance (£20k) and then other tax free savings vehicles such as Premium Bonds (£50k). Thats almost £100k in cash assets before you start paying tax on interest.
I have gone online and adjusted the figure for untaxed interest on the HMRC website down to what I calculate is the correct figure. I moved it To £2500 last year and to £1000 this year. However, my final code for last year was still reflecting £6,000 interest an my code for this year is currently reflecting £6,000.I assumed me doing this was a self assessment. I am only giving HMRC figures that they already have from the institutions paying my interest. Should I actually ask them for self assessment and provide them, with the detailed interest breakdown myself ? I thought this was only required for business people, or income like rental properties etc that HMRC would be unaware of.0 -
It makes me wonder about the wisdom of the move to stop deducting income tax automatically from savings and investments a/c's a few years ago. What was the supposed rationale behind it, who was supposed to benefit? Throughout the EU they remain with the old system.
But in the panoply of uselessness that is today's HMRC I suppose it is well down the priority list. I just don't get why the tax system and HMRC is not made a bigger political issue. We get all hot under the collar about "tax" yet nobody cares that we have the most complicated tax laws in the developed world, and that HMRC resources have been cut and cut. Why do we not want to set up a real elite squad to take on the big tax avoiders, paying them enough to ensure they don't get poached by their enablers at Deloitte et al? The ROI on that squad would be huge (assuming the tax law itself is fit for purpose, which is probably a heroic assumption).
Meanwhile in Estonia and across Scandiland generally people fill in their tax returns on-line in a matter of minutes.
I will never understand the British attitude towards tax. It's weird, in the same way the British attitude towards sex was in the 60's 😂0 -
Best to do self assessment to claim back any tax overpaid for 25/26 because of the adjustment of tax code. They do have the amount of interest paid by banks / building societies but you need to put it on the self assessment along with any other income ie pension. Once they have agreed the self assessment they will repay any tax owed and should issue you with a new tax code but that could take a couple of months
although the app does show a section saying we haven’t calculated you tax for 25/26 and you don’t need to do anything I would still do a self assessment.I’m still get the we haven’t calculated you tax for 24/25 but I know I don’t own anything and they don’t owe me so am not worried about it. You might have to talk to them or do self assessment if they owe you tax for 24/250 -
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Not quite sure if this is what you're asking but a few months ago I received my new tax code for 26/27. My tax code included an assumption of how much taxible interest I would receive during the year.RaplhMilne said:
The long story short is over a number of years when cash interest rates were very low, I used my annual allowance on a stocks and shares ISA. On retirement, I took a significant cash lump sum, which over the years I have been moving into a Cash ISA. In 2023 I probably had over £100,000 outside an ISA, an earned over £5,000 in untaxed interest. In 24,25,26 I have moved £60,000 into ISA,s. Given my family around £20,000 over that period. So I now have less than £20,000 not in a Tax free position. Yet, my Tax code is calculated that I had over £6,000 of Tax free interest in the last 3 years. Including a tax code of £6,000 for this year when I estimate it won’t be £1,000. So with £500 allowance, I should be taxed on £500 (Tax for the year at 40%) £200. Yet HMRC are taking £200 a month.golfaddick said:
This.SE9toDA2 said:@ralphmilne have you done a self assessment for the relevant tax years
No idea why HMRC are calculating your tax for you under these circumstances.
Also, why are you receiving interest that you pay tax on ? Even at 4% you can have £25k in cash. Then there is your annual ISA allowance (£20k) and then other tax free savings vehicles such as Premium Bonds (£50k). Thats almost £100k in cash assets before you start paying tax on interest.
I have gone online and adjusted the figure for untaxed interest on the HMRC website down to what I calculate is the correct figure. I moved it To £2500 last year and to £1000 this year. However, my final code for last year was still reflecting £6,000 interest an my code for this year is currently reflecting £6,000.I assumed me doing this was a self assessment. I am only giving HMRC figures that they already have from the institutions paying my interest. Should I actually ask them for self assessment and provide them, with the detailed interest breakdown myself ? I thought this was only required for business people, or income like rental properties etc that HMRC would be unaware of.
As our (modest amount of) money was now in an ISA I'm not going to paying any tax on interest this year. I rang HMRC and surprisingly they took me at my word and sent me a new tax code with this amount taken off.1 -
I've been doing self-assessment for 30 odd years and to be honest that's all it takes me to complete it.PragueAddick said:It makes me wonder about the wisdom of the move to stop deducting income tax automatically from savings and investments a/c's a few years ago. What was the supposed rationale behind it, who was supposed to benefit? Throughout the EU they remain with the old system.
But in the panoply of uselessness that is today's HMRC I suppose it is well down the priority list. I just don't get why the tax system and HMRC is not made a bigger political issue. We get all hot under the collar about "tax" yet nobody cares that we have the most complicated tax laws in the developed world, and that HMRC resources have been cut and cut. Why do we not want to set up a real elite squad to take on the big tax avoiders, paying them enough to ensure they don't get poached by their enablers at Deloitte et al? The ROI on that squad would be huge (assuming the tax law itself is fit for purpose, which is probably a heroic assumption).
Meanwhile in Estonia and across Scandiland generally people fill in their tax returns on-line in a matter of minutes.
I will never understand the British attitude towards tax. It's weird, in the same way the British attitude towards sex was in the 60's 😂
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I guess like a lot of things, say, a new OS on a computer or phone, the system looks daunting but if you successfully navigate it a few times they become second nature. But you also had the advantage of following HMRC on its painful transition to the web and also if I am not presumptious were you not largely PAYE for much of that time? The posters above, and me are not/have not been for a while. And the thing about the Scandis is that their tax laws are a lot simpler. They take a lot, but there are far less deductions available for this and that, let alone dark corners that lurk in a massive un-reformed tax law.bobmunro said:
I've been doing self-assessment for 30 odd years and to be honest that's all it takes me to complete it.PragueAddick said:It makes me wonder about the wisdom of the move to stop deducting income tax automatically from savings and investments a/c's a few years ago. What was the supposed rationale behind it, who was supposed to benefit? Throughout the EU they remain with the old system.
But in the panoply of uselessness that is today's HMRC I suppose it is well down the priority list. I just don't get why the tax system and HMRC is not made a bigger political issue. We get all hot under the collar about "tax" yet nobody cares that we have the most complicated tax laws in the developed world, and that HMRC resources have been cut and cut. Why do we not want to set up a real elite squad to take on the big tax avoiders, paying them enough to ensure they don't get poached by their enablers at Deloitte et al? The ROI on that squad would be huge (assuming the tax law itself is fit for purpose, which is probably a heroic assumption).
Meanwhile in Estonia and across Scandiland generally people fill in their tax returns on-line in a matter of minutes.
I will never understand the British attitude towards tax. It's weird, in the same way the British attitude towards sex was in the 60's 😂1 -
Me too, generally 20 minutes tops.bobmunro said:
I've been doing self-assessment for 30 odd years and to be honest that's all it takes me to complete it.PragueAddick said:It makes me wonder about the wisdom of the move to stop deducting income tax automatically from savings and investments a/c's a few years ago. What was the supposed rationale behind it, who was supposed to benefit? Throughout the EU they remain with the old system.
But in the panoply of uselessness that is today's HMRC I suppose it is well down the priority list. I just don't get why the tax system and HMRC is not made a bigger political issue. We get all hot under the collar about "tax" yet nobody cares that we have the most complicated tax laws in the developed world, and that HMRC resources have been cut and cut. Why do we not want to set up a real elite squad to take on the big tax avoiders, paying them enough to ensure they don't get poached by their enablers at Deloitte et al? The ROI on that squad would be huge (assuming the tax law itself is fit for purpose, which is probably a heroic assumption).
Meanwhile in Estonia and across Scandiland generally people fill in their tax returns on-line in a matter of minutes.
I will never understand the British attitude towards tax. It's weird, in the same way the British attitude towards sex was in the 60's 😂
but I agree they probably should have just stuck with taxing savings interest at source, then it’s just higher rate payers need to declare. But then with savings allowances you’d have many people trying to reclaim I guess which may be why they changed.0 -
Just to illustrate the HMRC chaos, re my story above, I wrote here that I phoned them on 27 March and they said that it was in process and would be sorted within 10 days. They actually prepared a reply dated 30 March. Fast, eh? And just to make sure they sent it, by post, twice. Got it/them this morning. It says
We are unable to process your request at this time because your UK-sourced income has not yet commenced. Double taxation relief can only be granted once taxable income from the UK has been established. When your UK employment or taxable activity begins, and income is generated, you may resubmit the form to HMRC for consideration.
There are two big problems with their reply.
1. I have plenty of UK sourced income. As well as my State pension, I have those bank interest payments, for which they have given me new tax codes - which the nice lady from Glasgow assured me would be cancelled.
2. I rang H-L to ask them whether I had done something wrong in the process. On the contrary, they reminded me that I had followed their advice, and a year ago I withdrew a token £50 from my SIPP precisely to signal to HMRC that I was starting withdrawal. They said HMRC for sure have a record of that but H-L gave me the payment references to quote to them.
So I have to call them again, at my expense from abroad. This time I will definitely record the call, which may be used as a formal complaint, copied to my MP, if the matter is not resolved as a result of the call.
I'm lucky that I don't have to rely on accessing my SIPP at this time. Some less fortunate retiree in, I dunno, Australia, would be completely shafted.1 -
Cash ISA’s - this is the last year you can put the full £20k in cash.
Whilst I’ve also only seen this on finance websites, it appears from next tax year you can’t transfer current/old S&S ISA’s to cash. Isn’t that going to see an exodus before April next year? Think I’ll be considering it.0 -
Rob7Lee said:Cash ISA’s - this is the last year you can put the full £20k in cash.
Whilst I’ve also only seen this on finance websites, it appears from next tax year you can’t transfer current/old S&S ISA’s to cash. Isn’t that going to see an exodus before April next year? Think I’ll be considering it.The £20k down to £12k change is exempted for old fogeys like me - not sure if that also applies to the block on SS ISA to Cash ISA transfers but yes, there will be an exodus or a big switch to MMFs. I've got both although my chunky SS ISAs are all in MMFs currently - no immediate plans to change that in the current climate.As an aside, Investec currently offering 1 year fixed rate cash ISA at 4.52%
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PragueAddick said:
I guess like a lot of things, say, a new OS on a computer or phone, the system looks daunting but if you successfully navigate it a few times they become second nature. But you also had the advantage of following HMRC on its painful transition to the web and also if I am not presumptious were you not largely PAYE for much of that time? The posters above, and me are not/have not been for a while. And the thing about the Scandis is that their tax laws are a lot simpler. They take a lot, but there are far less deductions available for this and that, let alone dark corners that lurk in a massive un-reformed tax law.bobmunro said:
I've been doing self-assessment for 30 odd years and to be honest that's all it takes me to complete it.PragueAddick said:It makes me wonder about the wisdom of the move to stop deducting income tax automatically from savings and investments a/c's a few years ago. What was the supposed rationale behind it, who was supposed to benefit? Throughout the EU they remain with the old system.
But in the panoply of uselessness that is today's HMRC I suppose it is well down the priority list. I just don't get why the tax system and HMRC is not made a bigger political issue. We get all hot under the collar about "tax" yet nobody cares that we have the most complicated tax laws in the developed world, and that HMRC resources have been cut and cut. Why do we not want to set up a real elite squad to take on the big tax avoiders, paying them enough to ensure they don't get poached by their enablers at Deloitte et al? The ROI on that squad would be huge (assuming the tax law itself is fit for purpose, which is probably a heroic assumption).
Meanwhile in Estonia and across Scandiland generally people fill in their tax returns on-line in a matter of minutes.
I will never understand the British attitude towards tax. It's weird, in the same way the British attitude towards sex was in the 60's 😂
Mainly PAYE but I also ran my own consultancy for 8 years and no issues at all with self-assessment. It was also VAT registered and if you think tax is time consuming .....! In those 8 years I had two bloody VAT investigations to deal with as well.1 -
I hope this is not true... Currently I take all the dividends in my Stock & Share ISA in cash. then once a year i do an ISA transfer moving the dividends over to a Cash ISA.Rob7Lee said:Cash ISA’s - this is the last year you can put the full £20k in cash.
Whilst I’ve also only seen this on finance websites, it appears from next tax year you can’t transfer current/old S&S ISA’s to cash. Isn’t that going to see an exodus before April next year? Think I’ll be considering it.
If the Transfers from Stocks & Shares to Cash is banned for over 65,s then i will have to consider whether selling up my whole portfolio and moving the lot to Cash before next year is a prudent thing to do.0 -
Over 65’s I think is fine, it’s us youngun’s who can’t.RaplhMilne said:
I hope this is not true... Currently I take all the dividends in my Stock & Share ISA in cash. then once a year i do an ISA transfer moving the dividends over to a Cash ISA.Rob7Lee said:Cash ISA’s - this is the last year you can put the full £20k in cash.
Whilst I’ve also only seen this on finance websites, it appears from next tax year you can’t transfer current/old S&S ISA’s to cash. Isn’t that going to see an exodus before April next year? Think I’ll be considering it.
If the Transfers from Stocks & Shares to Cash is banned for over 65,s then i will have to consider whether selling up my whole portfolio and moving the lot to Cash before next year is a prudent thing to do.0 -
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Read that as wrongun! 🤣 thought that was an odd policy distinctionRob7Lee said:
Over 65’s I think is fine, it’s us youngun’s who can’t.RaplhMilne said:
I hope this is not true... Currently I take all the dividends in my Stock & Share ISA in cash. then once a year i do an ISA transfer moving the dividends over to a Cash ISA.Rob7Lee said:Cash ISA’s - this is the last year you can put the full £20k in cash.
Whilst I’ve also only seen this on finance websites, it appears from next tax year you can’t transfer current/old S&S ISA’s to cash. Isn’t that going to see an exodus before April next year? Think I’ll be considering it.
If the Transfers from Stocks & Shares to Cash is banned for over 65,s then i will have to consider whether selling up my whole portfolio and moving the lot to Cash before next year is a prudent thing to do.
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MMF's could well be banned in an ISA if HMRC / Rachel Reeves get their way. Holding Cash in a stocks & shares ISA will be banned from next year and there are big rumours that MMF's will be as well.bobmunro said:Rob7Lee said:Cash ISA’s - this is the last year you can put the full £20k in cash.
Whilst I’ve also only seen this on finance websites, it appears from next tax year you can’t transfer current/old S&S ISA’s to cash. Isn’t that going to see an exodus before April next year? Think I’ll be considering it.The £20k down to £12k change is exempted for old fogeys like me - not sure if that also applies to the block on SS ISA to Cash ISA transfers but yes, there will be an exodus or a big switch to MMFs. I've got both although my chunky SS ISAs are all in MMFs currently - no immediate plans to change that in the current climate.As an aside, Investec currently offering 1 year fixed rate cash ISA at 4.52%0 -
I don't think Rachel from accounts has thought this through.golfaddick said:
MMF's could well be banned in an ISA if HMRC / Rachel Reeves get their way. Holding Cash in a stocks & shares ISA will be banned from next year and there are big rumours that MMF's will be as well.bobmunro said:Rob7Lee said:Cash ISA’s - this is the last year you can put the full £20k in cash.
Whilst I’ve also only seen this on finance websites, it appears from next tax year you can’t transfer current/old S&S ISA’s to cash. Isn’t that going to see an exodus before April next year? Think I’ll be considering it.The £20k down to £12k change is exempted for old fogeys like me - not sure if that also applies to the block on SS ISA to Cash ISA transfers but yes, there will be an exodus or a big switch to MMFs. I've got both although my chunky SS ISAs are all in MMFs currently - no immediate plans to change that in the current climate.As an aside, Investec currently offering 1 year fixed rate cash ISA at 4.52%
@bobmunro funnily enough I looked at the Investec one for my wife the other day, sadly doesn't take transfers in. My bank (HSBC) have one at 4.5% though which is near enough, although am tempted with some to fix for longer.
I've a while to decide, and easy for me to switch some as my Trading 212 ISA is good for that (takes minutes to switch from S&S to cash). It's my wife's who is with Fidelity that I need to give some thought to.0 -
Rob7Lee said:
I don't think Rachel from accounts has thought this through.golfaddick said:
MMF's could well be banned in an ISA if HMRC / Rachel Reeves get their way. Holding Cash in a stocks & shares ISA will be banned from next year and there are big rumours that MMF's will be as well.bobmunro said:Rob7Lee said:Cash ISA’s - this is the last year you can put the full £20k in cash.
Whilst I’ve also only seen this on finance websites, it appears from next tax year you can’t transfer current/old S&S ISA’s to cash. Isn’t that going to see an exodus before April next year? Think I’ll be considering it.The £20k down to £12k change is exempted for old fogeys like me - not sure if that also applies to the block on SS ISA to Cash ISA transfers but yes, there will be an exodus or a big switch to MMFs. I've got both although my chunky SS ISAs are all in MMFs currently - no immediate plans to change that in the current climate.As an aside, Investec currently offering 1 year fixed rate cash ISA at 4.52%
@bobmunro funnily enough I looked at the Investec one for my wife the other day, sadly doesn't take transfers in. My bank (HSBC) have one at 4.5% though which is near enough, although am tempted with some to fix for longer.
I've a while to decide, and easy for me to switch some as my Trading 212 ISA is good for that (takes minutes to switch from S&S to cash). It's my wife's who is with Fidelity that I need to give some thought to.
Yes, shame that Investec don't take transfers in, but they are working on it. I've already got a fair bit with Investec (non ISAs), as does my wife, so it was easy for me to just transfer this years allowances into two new cash ISAs with them to park the £40k for a year and then transfer out to somewhere else next April or rinse and repeat depending on what they might be offering then.0 -
golfaddick said:
MMF's could well be banned in an ISA if HMRC / Rachel Reeves get their way. Holding Cash in a stocks & shares ISA will be banned from next year and there are big rumours that MMF's will be as well.bobmunro said:Rob7Lee said:Cash ISA’s - this is the last year you can put the full £20k in cash.
Whilst I’ve also only seen this on finance websites, it appears from next tax year you can’t transfer current/old S&S ISA’s to cash. Isn’t that going to see an exodus before April next year? Think I’ll be considering it.The £20k down to £12k change is exempted for old fogeys like me - not sure if that also applies to the block on SS ISA to Cash ISA transfers but yes, there will be an exodus or a big switch to MMFs. I've got both although my chunky SS ISAs are all in MMFs currently - no immediate plans to change that in the current climate.As an aside, Investec currently offering 1 year fixed rate cash ISA at 4.52%
Won't happen.0 -
In case anyone thinks my claim about the complexity of UK tax laws was empty rhetoric, I have asked ChatGPT to consider where I got this claim from. It does not support a blanket claim of "most complex in the developed world" but lays out why it is very challenging and particularly points to this:
Layering over time rather than wholesale reform
Heavy use of reliefs, exemptions, and special regimes
That was my point. Why is this not a bigger political issue for any party?
As for my current issue, I made some progress yesterday, but in the process found more chaos. I have two letters from HMRC from last April re tax code changes. The first letter told me that for years 24-25, my code changes from 26L to K745X . The second letter told me that for years 25-26, my code changes from K837, to K1566. Ok so when did it change to K837? And when I was discussing this with H-L the helpful lady offered to tell me the tax code HMRC have sent them. In 25-26 it was K1326, and in 26-27 it changed to K1448. Neither of these figures correspond to any of the codes HMRC advised to me!! I do not have a clue what these tax codes mean, but I can see that some of the numbers bear some relation to the taxable income they claim to have identified.
Anyway. I called HMRC back. I asked the call centre lady if I could speak directly to one of the people actually handling my case. She politely claimed that she was unable to do that. So I asked equally politely if I could record the dialogue since if I could not resolve the issue in this call I would make a formal complaint and copy my MP. She replied that "we have been trained to refuse such requests". We had a polite chat about that and I let it go, so she said that she would talk to someone about my problem. I was on hold for all of 3 seconds, just enough time for her to have said "This one's trouble" and I was speaking to "Colin". When I pointed out the token £50 payment I'd already made from my SIPP he caved in immediately and said he can give me the NT code I needed. He attempted to blame H-L for opening the payment account and closing it again the next day. H-L subsequently denied this, saying that as far as they are concerned it remains open. I actually got email confirmation of the NT code from HMRC that evening. This morning I asked H-L if they too have received the code change. They had not. So I suppose I will wait a couple of weeks and then make another expensive call to nudge them. But at least its done.
Why does it have to be so painful? The answer IMO lies partly with the points ChatGPT mentions above.0 -
I’ve said for many years, our tax system needs wiping and starting again. But no party is going to do that as it’s likely to upset as many people as it pleases which will simply lose votes.
The Country is in a world of pain financially and it’s not going to improve any time soon, I fully expect more elastoplasts (ie more additional tax changes), sadly it’s only going to get worse.
one bit on yours I don’t understand, why are you still taxed in the UK? Or more so I guess why are you still tax resident? Surely by now you can not be?0 -
IMF downgrading worldwide economic growth due to the war in Iran.
The UK fares the worst with the IMF saying GDP falling 0.5%, from 1.3% to 0.8%.
By comparison the US GDP only set to fall by 0.1%, from 2.4% to 2.3%.
Why does the country who started the damn thing get off more or less intact - whereas the uninvolved (like us) gets worse hit ??
(Rhetorical question as I don't want to run this political)
And I know it's to do with the UK more reliant on imported oil than other countries, inflation, interest rates etc etc.1 -
I haven't been tax resident since 1996. That's been accepted by HMRC on all my returns each year, completed by a professional adviser. However I continued to have to pay UK tax through to 2023 because of the rental income on my house in Surbiton . For some reason HMRC claim they are entitled to the tax on that, no matter you are tax non- resident. But when I sold it, my adviser got a written agreement from HMRC that I no longer needed to submit self-assessment. So the application to get an NR tax code should have been a formality, especially with the nice stamped confirmation from the Czech tax office that I am paying tax here. Nine months later I still didn't have it, until finally I got through to "Colin", and suddenly I had it.Rob7Lee said:I’ve said for many years, our tax system needs wiping and starting again. But no party is going to do that as it’s likely to upset as many people as it pleases which will simply lose votes.
The Country is in a world of pain financially and it’s not going to improve any time soon, I fully expect more elastoplasts (ie more additional tax changes), sadly it’s only going to get worse.
one bit on yours I don’t understand, why are you still taxed in the UK? Or more so I guess why are you still tax resident? Surely by now you can not be?
I wish British people would moan less about paying tax and more about the failure of HMRC to collect the agreed tax fairly and efficiently.3 -
But most British people aren’t exposed to this aspect. They only know / feel what they pay.PragueAddick said:
I haven't been tax resident since 1996. That's been accepted by HMRC on all my returns each year, completed by a professional adviser. However I continued to have to pay UK tax through to 2023 because of the rental income on my house in Surbiton . For some reason HMRC claim they are entitled to the tax on that, no matter you are tax non- resident. But when I sold it, my adviser got a written agreement from HMRC that I no longer needed to submit self-assessment. So the application to get an NR tax code should have been a formality, especially with the nice stamped confirmation from the Czech tax office that I am paying tax here. Nine months later I still didn't have it, until finally I got through to "Colin", and suddenly I had it.Rob7Lee said:I’ve said for many years, our tax system needs wiping and starting again. But no party is going to do that as it’s likely to upset as many people as it pleases which will simply lose votes.
The Country is in a world of pain financially and it’s not going to improve any time soon, I fully expect more elastoplasts (ie more additional tax changes), sadly it’s only going to get worse.
one bit on yours I don’t understand, why are you still taxed in the UK? Or more so I guess why are you still tax resident? Surely by now you can not be?
I wish British people would moan less about paying tax and more about the failure of HMRC to collect the agreed tax fairly and efficiently.As said above it’s our political leaders who are most at fault for not getting to grips with it.0
