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Savings and Investments thread
Comments
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valleynick66 said:
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.It is true that most UK taxpayers never need to deal directly with HMRC - they have one employed job or pension, have a standard tax code of 1257L (Personal Allowance) and deductions are via PAYE, applied and collected by their employer and itemised on their payslip.However, of the 37m UK taxpayers, 12m do have to submit a self-assessment for any number of reasons - multiple jobs, capital gains, taxable benefits, taxable income from investments, self-employed (in whole or part) and so on - so roughly a third of all taxpayers. That is still a very sizeable minority who are expected to understand what they can and can't claim as relief or pay on top of any tax/NI deducted at source. If you understand the UK tax system in sufficient detail self-assessment is pretty straightforward - if you don't then it can be a minefield mainly because people generally don't know what they don't know and HMRC will only tell you if you owe them money and not that they could owe you money if you lawfully claimed for x, y or z. Pension contributions is a prime example - 20% tax relief is applied via PAYE and any additional relief if you are a 40%/45% taxpayer has to be applied for by the individual - HMRC won't tell you, and it is amazing how many people don't realise that additional relief on contributions is available at your marginal rate.Yes, the tax system is way too complicated and is only ever tinkered with, which ultimately makes it ever increasingly complicated! Systemic changes are needed, but so too is the provision of effective education for taxpayers.
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On this. The US started this war in an attempt to make them the default supplier of oil worldwide (now that they've siezed Venezuela's oil) and to strengthen the petro-dollar. Even though its not been completely successful and much of Asia are moving or considering moving from the petro-dollar (some even dumping reserves) they were never gonna go out of this badly hit.golfaddick said: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.
For us it's over exposure to fossil fuel reliance and complex imported supply chains for basically all consumer goods but particularly things like food which then rely on complicated supply chains and fossil fuels for fertiliser.
The interesting thing from the IMF forecasts - and the OECD ones which were basically the same - was that they warned the UK and European economies against raising interest rates in an attempt to deal with the rising inflation that will inevitably comes as a result of this crisis. This is something I've been banging on about for a while and is one of the fundamental economic misunderstandings that has been taught and then espoused by the press. Interest rates as a mechanism to control inflation will only work against domestic driven demand led inflation. It will not work against external supply shock inflation such as this, or what we saw after Russia invaded Ukraine. Raising interest rates in this situation will have a negligible impact on inflation but will cause economic hardship for millions through increased mortgage rates and will destroy demand for domestic small businesses. We have so few levers against external supply shocks that we simply have to ride them out and support the worst affected whilst also working towards insulating our economy from them in the future (domestic production of renewables and food as a start).
This does raise questions over the role and purpose of the BoE in a modern economy. For me their focus should more be on the role as lender of last resort and as a regulator and lender for the banking sector. Which in itself raises the question of independence and of whether we should still be paying the BoE £70bn a year in interest on the marginal time between government spending money and it being assigned to borrowing or tax funded.5 -
And that’s rather my point; people don’t know what they don’t know and hence why they don’t complain about it.The complaints will therefore be about what they do pay.0
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The two options the way I see it and I'm a light year away from being an expert
1) the massively over-complicated tax system in this country needs reform, like starting from scratch and simplifying
2) we all need to be educated in the tax system so effectively become unpaid tax solicitors/accountants.1 -
On the HMRC point. Professor Richard Murphy of Tax Research UK makes the point that HMRC has been deliberately underfunded for political reasons over decades. He goes further to suggest certain parts of it in particular have been targetted for cuts because they focused on money being taken offshore and corporate tax avoidance. He estimates the tax gap to be quite a bit higher than the HMRC estimate and thinks with funding this could be closed. He also makes lots of points around customer service and usability due to cuts. He's written about this a lot but one here seems to cover a range of points
https://www.taxresearch.org.uk/Blog/2024/02/29/reforming-the-organisation-goals-and-funding-of-hm-revenue-customs/#:~:text=It also seems that HM,be enrolled in this programme.3 -
It baffles me that tax collection went from tax experts ( HMRC) checking tax returns to make sure you were paying the correct amount of tax to Self Assessment where the onus was on the general public (who know very little about tax) to declare their earnings, expenses etc.. It then went further to banks paying all interest gross and , once again, assuming the general public will be honest with how much interest they have received on their savings.
It's a bit like getting rid of MOT stations & asking car owners to self certify that their car is road worthy.4 -
Wasn’t the switch to banks paying interest gross as much to do with the era of low interest rates and too many people paying (modest) tax they didn’t need to? Maybe I misremember the rationale at the time.golfaddick said:It baffles me that tax collection went from tax experts ( HMRC) checking tax returns to make sure you were paying the correct amount of tax to Self Assessment where the onus was on the general public (who know very little about tax) to declare their earnings, expenses etc.. It then went further to banks paying all interest gross and , once again, assuming the general public will be honest with how much interest they have received on their savings.
It's a bit like getting rid of MOT stations & asking car owners to self certify that their car is road worthy.0 -
Well, in fact the banks seem to be very diligent in reporting the interest to HMRC; it's estimate of what I had earned from such interest in the previous two tax years was pretty accurate.golfaddick said:It baffles me that tax collection went from tax experts ( HMRC) checking tax returns to make sure you were paying the correct amount of tax to Self Assessment where the onus was on the general public (who know very little about tax) to declare their earnings, expenses etc.. It then went further to banks paying all interest gross and , once again, assuming the general public will be honest with how much interest they have received on their savings.
It's a bit like getting rid of MOT stations & asking car owners to self certify that their car is road worthy.
I could imagine that within a year or so we should be able to use AI platforms/agents to give us a decent personal guide to our tax situations. And in about 20 years HMRC will be using AI to avoid elementary clerical mistakes like they have made in my case.🤣
In the meantime, does anyone know if there is a definitive guide to HMRC tax codes that I can read up on?😉
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Straight from the horses mouthPragueAddick said:
Well, in fact the banks seem to be very diligent in reporting the interest to HMRC; it's estimate of what I had earned from such interest in the previous two tax years was pretty accurate.golfaddick said:It baffles me that tax collection went from tax experts ( HMRC) checking tax returns to make sure you were paying the correct amount of tax to Self Assessment where the onus was on the general public (who know very little about tax) to declare their earnings, expenses etc.. It then went further to banks paying all interest gross and , once again, assuming the general public will be honest with how much interest they have received on their savings.
It's a bit like getting rid of MOT stations & asking car owners to self certify that their car is road worthy.
I could imagine that within a year or so we should be able to use AI platforms/agents to give us a decent personal guide to our tax situations. And in about 20 years HMRC will be using AI to avoid elementary clerical mistakes like they have made in my case.🤣
In the meantime, does anyone know if there is a definitive guide to HMRC tax codes that I can read up on?😉
https://www.gov.uk/tax-codes/what-your-tax-code-means
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FTSE100 stands at 10,559 at close today. That is 375 points (or 3.5%) of it's all time high of 10,935.
Meanwhile, the S&P500 at 4pm today stood at 6999, just 3 points off it's all time high.
It's like the war in Iran isn't happening to the US0 -
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I think what you're referring to here is the perfect demonstration of how western economies are now referred to as spilt economies. And how as a result stock market performance and even GDP isn't reflective of how the economy is actually performing.golfaddick said:FTSE100 stands at 10,559 at close today. That is 375 points (or 3.5%) of it's all time high of 10,935.
Meanwhile, the S&P500 at 4pm today stood at 6999, just 3 points off it's all time high.
It's like the war in Iran isn't happening to the US
The split is: you have corporations, their owners and other large-scale asset holders. For these groups crisis is great it leads round increased government spending on contracts with large corporations. Large military contracts, tech contracts etc. For other sectors it's simply an opportunity to pass costs on to consumers and so proportionally increase profits, at its worst there will be price gouging to increase profits at a rate larger than the increase in costs. This is good for the share price,stock market performance, GDP, dividends, asset holders and those who own debt as an asset.
On the other side of the split you have the worker/consumers. Those who bear the costs of the above, pay more in shops and at the pumps, eroded real pay, pay more interest on their debt etc etc.
War = good for big business and those who profit from them. Bad for everyone else. But we judge an economy by the performance of big business.
This is the premise upon which the wellbeing economy movement is built. The idea being that you can have growth and massive stock market rises whilst the majority of people get worse off. Therefore We decouple the idea that growth & stock market performance = a well performing economy. Instead measure success by a series of economic indicators based around how well the average person is doing in the supermarket.
In short the Neo-Classical economic idea that "the rising tide of growth lifts all boats" hasn't been true in empirical data since the early 80s. Therefore how we judge an economy needs to change to reflect that.5 -
More like trump is actively hampering what’s otherwise a very strong American economy.golfaddick said:FTSE100 stands at 10,559 at close today. That is 375 points (or 3.5%) of it's all time high of 10,935.
Meanwhile, the S&P500 at 4pm today stood at 6999, just 3 points off it's all time high.
It's like the war in Iran isn't happening to the US2 -
Thanks Bob, that’s very helpful, and pretty clear. So I have finally got the NT code, which is what H-L need to see, then I can draw my SIPP gross (though I will have to pay Czech income tax on it). So the various K codes that have been thrown at me vary according to the amount over the personal allowance they reckon I have gone. A previous HMRC rep assured me that when I get the NT code the previous K codes would be withdrawn, but whether that means they accept I dont owe them anything, remains to be seen. But they have all the evidence that I’ve been non-res for 30 years, so that ought not to be too difficult now. At least I can access my money tax free at last.bobmunro said:
Straight from the horses mouthPragueAddick said:
Well, in fact the banks seem to be very diligent in reporting the interest to HMRC; it's estimate of what I had earned from such interest in the previous two tax years was pretty accurate.golfaddick said:It baffles me that tax collection went from tax experts ( HMRC) checking tax returns to make sure you were paying the correct amount of tax to Self Assessment where the onus was on the general public (who know very little about tax) to declare their earnings, expenses etc.. It then went further to banks paying all interest gross and , once again, assuming the general public will be honest with how much interest they have received on their savings.
It's a bit like getting rid of MOT stations & asking car owners to self certify that their car is road worthy.
I could imagine that within a year or so we should be able to use AI platforms/agents to give us a decent personal guide to our tax situations. And in about 20 years HMRC will be using AI to avoid elementary clerical mistakes like they have made in my case.🤣
In the meantime, does anyone know if there is a definitive guide to HMRC tax codes that I can read up on?😉
https://www.gov.uk/tax-codes/what-your-tax-code-means1 -
Or buy an annuity 🤭PragueAddick said:
Thanks Bob, that’s very helpful, and pretty clear. So I have finally got the NT code, which is what H-L need to see, then I can draw my SIPP gross (though I will have to pay Czech income tax on it). So the various K codes that have been thrown at me vary according to the amount over the personal allowance they reckon I have gone. A previous HMRC rep assured me that when I get the NT code the previous K codes would be withdrawn, but whether that means they accept I dont owe them anything, remains to be seen. But they have all the evidence that I’ve been non-res for 30 years, so that ought not to be too difficult now. At least I can access my money tax free at last.bobmunro said:
Straight from the horses mouthPragueAddick said:
Well, in fact the banks seem to be very diligent in reporting the interest to HMRC; it's estimate of what I had earned from such interest in the previous two tax years was pretty accurate.golfaddick said:It baffles me that tax collection went from tax experts ( HMRC) checking tax returns to make sure you were paying the correct amount of tax to Self Assessment where the onus was on the general public (who know very little about tax) to declare their earnings, expenses etc.. It then went further to banks paying all interest gross and , once again, assuming the general public will be honest with how much interest they have received on their savings.
It's a bit like getting rid of MOT stations & asking car owners to self certify that their car is road worthy.
I could imagine that within a year or so we should be able to use AI platforms/agents to give us a decent personal guide to our tax situations. And in about 20 years HMRC will be using AI to avoid elementary clerical mistakes like they have made in my case.🤣
In the meantime, does anyone know if there is a definitive guide to HMRC tax codes that I can read up on?😉
https://www.gov.uk/tax-codes/what-your-tax-code-means1 -
PragueAddick said:
Thanks Bob, that’s very helpful, and pretty clear. So I have finally got the NT code, which is what H-L need to see, then I can draw my SIPP gross (though I will have to pay Czech income tax on it). So the various K codes that have been thrown at me vary according to the amount over the personal allowance they reckon I have gone. A previous HMRC rep assured me that when I get the NT code the previous K codes would be withdrawn, but whether that means they accept I dont owe them anything, remains to be seen. But they have all the evidence that I’ve been non-res for 30 years, so that ought not to be too difficult now. At least I can access my money tax free at last.bobmunro said:
Straight from the horses mouthPragueAddick said:
Well, in fact the banks seem to be very diligent in reporting the interest to HMRC; it's estimate of what I had earned from such interest in the previous two tax years was pretty accurate.golfaddick said:It baffles me that tax collection went from tax experts ( HMRC) checking tax returns to make sure you were paying the correct amount of tax to Self Assessment where the onus was on the general public (who know very little about tax) to declare their earnings, expenses etc.. It then went further to banks paying all interest gross and , once again, assuming the general public will be honest with how much interest they have received on their savings.
It's a bit like getting rid of MOT stations & asking car owners to self certify that their car is road worthy.
I could imagine that within a year or so we should be able to use AI platforms/agents to give us a decent personal guide to our tax situations. And in about 20 years HMRC will be using AI to avoid elementary clerical mistakes like they have made in my case.🤣
In the meantime, does anyone know if there is a definitive guide to HMRC tax codes that I can read up on?😉
https://www.gov.uk/tax-codes/what-your-tax-code-means
Is it not possible/sensible (due to exchange) to transfer your SIPP to a Czech one? Why still hold a UK one in GBP?0 -
Czexh personal pensions and the funds they offer are dire. Its one of the reasons why I say that this stuff is one of the rare things that the UK is great at, by a global and European benchmark.Rob7Lee said:PragueAddick said:
Thanks Bob, that’s very helpful, and pretty clear. So I have finally got the NT code, which is what H-L need to see, then I can draw my SIPP gross (though I will have to pay Czech income tax on it). So the various K codes that have been thrown at me vary according to the amount over the personal allowance they reckon I have gone. A previous HMRC rep assured me that when I get the NT code the previous K codes would be withdrawn, but whether that means they accept I dont owe them anything, remains to be seen. But they have all the evidence that I’ve been non-res for 30 years, so that ought not to be too difficult now. At least I can access my money tax free at last.bobmunro said:
Straight from the horses mouthPragueAddick said:
Well, in fact the banks seem to be very diligent in reporting the interest to HMRC; it's estimate of what I had earned from such interest in the previous two tax years was pretty accurate.golfaddick said:It baffles me that tax collection went from tax experts ( HMRC) checking tax returns to make sure you were paying the correct amount of tax to Self Assessment where the onus was on the general public (who know very little about tax) to declare their earnings, expenses etc.. It then went further to banks paying all interest gross and , once again, assuming the general public will be honest with how much interest they have received on their savings.
It's a bit like getting rid of MOT stations & asking car owners to self certify that their car is road worthy.
I could imagine that within a year or so we should be able to use AI platforms/agents to give us a decent personal guide to our tax situations. And in about 20 years HMRC will be using AI to avoid elementary clerical mistakes like they have made in my case.🤣
In the meantime, does anyone know if there is a definitive guide to HMRC tax codes that I can read up on?😉
https://www.gov.uk/tax-codes/what-your-tax-code-means
Is it not possible/sensible (due to exchange) to transfer your SIPP to a Czech one? Why still hold a UK one in GBP?Whats more the big players such as H-L had plans to take their expertise into Europe. I am sure they would have cleaned up. Brexit kyboshed all that1 -
I can’t, mate. A competent IFA 😉😉😉looked into it for me and found that none of the major players will touch a non-res.golfaddick said:
Or buy an annuity 🤭PragueAddick said:
Thanks Bob, that’s very helpful, and pretty clear. So I have finally got the NT code, which is what H-L need to see, then I can draw my SIPP gross (though I will have to pay Czech income tax on it). So the various K codes that have been thrown at me vary according to the amount over the personal allowance they reckon I have gone. A previous HMRC rep assured me that when I get the NT code the previous K codes would be withdrawn, but whether that means they accept I dont owe them anything, remains to be seen. But they have all the evidence that I’ve been non-res for 30 years, so that ought not to be too difficult now. At least I can access my money tax free at last.bobmunro said:
Straight from the horses mouthPragueAddick said:
Well, in fact the banks seem to be very diligent in reporting the interest to HMRC; it's estimate of what I had earned from such interest in the previous two tax years was pretty accurate.golfaddick said:It baffles me that tax collection went from tax experts ( HMRC) checking tax returns to make sure you were paying the correct amount of tax to Self Assessment where the onus was on the general public (who know very little about tax) to declare their earnings, expenses etc.. It then went further to banks paying all interest gross and , once again, assuming the general public will be honest with how much interest they have received on their savings.
It's a bit like getting rid of MOT stations & asking car owners to self certify that their car is road worthy.
I could imagine that within a year or so we should be able to use AI platforms/agents to give us a decent personal guide to our tax situations. And in about 20 years HMRC will be using AI to avoid elementary clerical mistakes like they have made in my case.🤣
In the meantime, does anyone know if there is a definitive guide to HMRC tax codes that I can read up on?😉
https://www.gov.uk/tax-codes/what-your-tax-code-means0 -
What do the locals do then ? If the funds in Czech pension are "poor" do they stay invested, take it all out or buy an annuity out there ?PragueAddick said:
I can’t, mate. A competent IFA 😉😉😉looked into it for me and found that none of the major players will touch a non-res.golfaddick said:
Or buy an annuity 🤭PragueAddick said:
Thanks Bob, that’s very helpful, and pretty clear. So I have finally got the NT code, which is what H-L need to see, then I can draw my SIPP gross (though I will have to pay Czech income tax on it). So the various K codes that have been thrown at me vary according to the amount over the personal allowance they reckon I have gone. A previous HMRC rep assured me that when I get the NT code the previous K codes would be withdrawn, but whether that means they accept I dont owe them anything, remains to be seen. But they have all the evidence that I’ve been non-res for 30 years, so that ought not to be too difficult now. At least I can access my money tax free at last.bobmunro said:
Straight from the horses mouthPragueAddick said:
Well, in fact the banks seem to be very diligent in reporting the interest to HMRC; it's estimate of what I had earned from such interest in the previous two tax years was pretty accurate.golfaddick said:It baffles me that tax collection went from tax experts ( HMRC) checking tax returns to make sure you were paying the correct amount of tax to Self Assessment where the onus was on the general public (who know very little about tax) to declare their earnings, expenses etc.. It then went further to banks paying all interest gross and , once again, assuming the general public will be honest with how much interest they have received on their savings.
It's a bit like getting rid of MOT stations & asking car owners to self certify that their car is road worthy.
I could imagine that within a year or so we should be able to use AI platforms/agents to give us a decent personal guide to our tax situations. And in about 20 years HMRC will be using AI to avoid elementary clerical mistakes like they have made in my case.🤣
In the meantime, does anyone know if there is a definitive guide to HMRC tax codes that I can read up on?😉
https://www.gov.uk/tax-codes/what-your-tax-code-means
Interested to know what other countries do.0 -
Czechia isn't a benchmark for Europe because it still has the Communist legacy, and because less people are well-off by UK standards, but most of Europe operates more like here than like the UK, AFAIK. Yes, annuities exist as a means to access your capital, but the basic system has been designed as a top-up to the State pension which is pretty modest too. There are a limited number of licensed pension providers for the system, a paltry mix of crap funds, and very high charges compared with the UK. I think that is a similar story in most EU countries. I doubt that, let's say, Schalke 04 Life has a Savings and Investment thread😉. Feyenoord Life might, though, the Dutch are probably the closest to us in being used to managing their own portfolios. Fidelity had a Dutch version of their Fund Supermarket, but I think they have closed it, also in the UK?golfaddick said:
What do the locals do then ? If the funds in Czech pension are "poor" do they stay invested, take it all out or buy an annuity out there ?PragueAddick said:
I can’t, mate. A competent IFA 😉😉😉looked into it for me and found that none of the major players will touch a non-res.golfaddick said:
Or buy an annuity 🤭PragueAddick said:
Thanks Bob, that’s very helpful, and pretty clear. So I have finally got the NT code, which is what H-L need to see, then I can draw my SIPP gross (though I will have to pay Czech income tax on it). So the various K codes that have been thrown at me vary according to the amount over the personal allowance they reckon I have gone. A previous HMRC rep assured me that when I get the NT code the previous K codes would be withdrawn, but whether that means they accept I dont owe them anything, remains to be seen. But they have all the evidence that I’ve been non-res for 30 years, so that ought not to be too difficult now. At least I can access my money tax free at last.bobmunro said:
Straight from the horses mouthPragueAddick said:
Well, in fact the banks seem to be very diligent in reporting the interest to HMRC; it's estimate of what I had earned from such interest in the previous two tax years was pretty accurate.golfaddick said:It baffles me that tax collection went from tax experts ( HMRC) checking tax returns to make sure you were paying the correct amount of tax to Self Assessment where the onus was on the general public (who know very little about tax) to declare their earnings, expenses etc.. It then went further to banks paying all interest gross and , once again, assuming the general public will be honest with how much interest they have received on their savings.
It's a bit like getting rid of MOT stations & asking car owners to self certify that their car is road worthy.
I could imagine that within a year or so we should be able to use AI platforms/agents to give us a decent personal guide to our tax situations. And in about 20 years HMRC will be using AI to avoid elementary clerical mistakes like they have made in my case.🤣
In the meantime, does anyone know if there is a definitive guide to HMRC tax codes that I can read up on?😉
https://www.gov.uk/tax-codes/what-your-tax-code-means
Interested to know what other countries do.0 -
PragueAddick said:
Czechia isn't a benchmark for Europe because it still has the Communist legacy, and because less people are well-off by UK standards, but most of Europe operates more like here than like the UK, AFAIK. Yes, annuities exist as a means to access your capital, but the basic system has been designed as a top-up to the State pension which is pretty modest too. There are a limited number of licensed pension providers for the system, a paltry mix of crap funds, and very high charges compared with the UK. I think that is a similar story in most EU countries. I doubt that, let's say, Schalke 04 Life has a Savings and Investment thread😉. Feyenoord Life might, though, the Dutch are probably the closest to us in being used to managing their own portfolios. Fidelity had a Dutch version of their Fund Supermarket, but I think they have closed it, also in the UK?golfaddick said:
What do the locals do then ? If the funds in Czech pension are "poor" do they stay invested, take it all out or buy an annuity out there ?PragueAddick said:
I can’t, mate. A competent IFA 😉😉😉looked into it for me and found that none of the major players will touch a non-res.golfaddick said:
Or buy an annuity 🤭PragueAddick said:
Thanks Bob, that’s very helpful, and pretty clear. So I have finally got the NT code, which is what H-L need to see, then I can draw my SIPP gross (though I will have to pay Czech income tax on it). So the various K codes that have been thrown at me vary according to the amount over the personal allowance they reckon I have gone. A previous HMRC rep assured me that when I get the NT code the previous K codes would be withdrawn, but whether that means they accept I dont owe them anything, remains to be seen. But they have all the evidence that I’ve been non-res for 30 years, so that ought not to be too difficult now. At least I can access my money tax free at last.bobmunro said:
Straight from the horses mouthPragueAddick said:
Well, in fact the banks seem to be very diligent in reporting the interest to HMRC; it's estimate of what I had earned from such interest in the previous two tax years was pretty accurate.golfaddick said:It baffles me that tax collection went from tax experts ( HMRC) checking tax returns to make sure you were paying the correct amount of tax to Self Assessment where the onus was on the general public (who know very little about tax) to declare their earnings, expenses etc.. It then went further to banks paying all interest gross and , once again, assuming the general public will be honest with how much interest they have received on their savings.
It's a bit like getting rid of MOT stations & asking car owners to self certify that their car is road worthy.
I could imagine that within a year or so we should be able to use AI platforms/agents to give us a decent personal guide to our tax situations. And in about 20 years HMRC will be using AI to avoid elementary clerical mistakes like they have made in my case.🤣
In the meantime, does anyone know if there is a definitive guide to HMRC tax codes that I can read up on?😉
https://www.gov.uk/tax-codes/what-your-tax-code-means
Interested to know what other countries do.That's surprising, especially as Czechoslovakia, as was, split from the Soviet Union getting on for forty years ago.So no real incentives to provide for retirement? And you say most of Europe is the same?0 -
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Well I think almost all of us have been winning at some point the last couple of months, but as it stands with a little over 2 months to go:
FTSE100 Level 10,667.63 Name Level Variance % Variance Hornchurch 10,666 1.63 0.02% golfaddick 10,660 7.63 0.07% @TelMc32 10,700 32.37 0.30% Thread Killer 10,715 47.37 0.44% blackpool72 10,620 47.63 0.45% CharltonKerry 10,560 107.63 1.01% Housty 10,542 125.63 1.18% Solidgone 10,801 133.37 1.25% thecat 10,520 147.63 1.38% HardyAddick 10,500 167.63 1.57% PragueAddick 10,488 179.63 1.68% Covered End 10,487 180.63 1.69% guinnessaddick 10,485 182.63 1.71% LargeAddick 10,412 255.63 2.40% RalphMilne 10,410 257.63 2.42% WHAddick 10,401 266.63 2.50% Jon_CAFC_ 10,378 289.63 2.72% fat man on a moped 10,376 291.63 2.73% TheGhostofTomHovi 10,342 325.63 3.05% Carter 10,998 330.37 3.10% cafcpolo 11,008 340.37 3.19% Friend or Defoe 11,050 382.37 3.58% StrikerFirmani 10,265 402.63 3.77% IdleHans 11,111 443.37 4.16% Huskaris 11,120 452.37 4.24% valleynick66 10,213 454.63 4.26% wwaddick 11,227 559.37 5.24% CAFCWest 10,101 566.63 5.31% Diebythesword 11,250 582.37 5.46% Addickinedi 9,999 668.63 6.27% Jamescafc 9,950 717.63 6.73% Addick Addict 9,944 723.63 6.78% Rob7Lee 9,920 747.63 7.01% Redman 9,800 867.63 8.13% Fortune 82nd Minute 9,715 952.63 8.93% Pedro45 9,549 1118.63 10.49% bobmunro 9,214 1453.63 13.63% Lenglover 8,301 2366.63 22.19% Er_Be_Ab_Pl_Wo_Wo_Ch 7,500 3167.63 29.69% 1 -
Markets to fall back down again today I reckon with the Middle East situation getting worse again.0
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Diebythesword said:Markets to fall back down again today I reckon with the Middle East situation getting worse again.I refer the honourable gentleman to the answer I gave some time ago!Rob7Lee said:Trump comes up trumps again 🤣
Bumper day so far and US not open yet. SIPP now at an all time high (again) up £13.5k today!!It aint over until the fat lady sings! I would guess more ups and downs for a few weeks yet and the biggest risk is likely to be Israel who won't be happy with this ceasefire, especially as it would appear they had little to do with the brokering.I missed the boat last week anyway - grrr! Money in my SS ISA still tied up in MMFs that I intend to sell today.
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Would appreciate people’s advice on how much IFAs should charge and on what basis / what % and whether a % of assets.
i have a mix of assets - pension, iSAs (shares and cash) physical BTLs, plus cash on deposits. I don’t mind paying for IFA advice but it should be good obviously. I can deal with the BTLs and cash so don’t see why an IFA should charge a % on these.Should an IFA give general advice and how should they charge?0 -
HardyAddick said:Would appreciate people’s advice on how much IFAs should charge and on what basis / what % and whether a % of assets.
i have a mix of assets - pension, iSAs (shares and cash) physical BTLs, plus cash on deposits. I don’t mind paying for IFA advice but it should be good obviously. I can deal with the BTLs and cash so don’t see why an IFA should charge a % on these.Should an IFA give general advice and how should they charge?If you just want general advice rather than them managing your portfolio then they will charge by the hour - anything from £150-£300 per hour. Do your SS ISAs need 'managing' above the fees you're already paying the platform? Are your pensions DB or DC or a combination? SIPP? You will already be paying fees for those anyway.IFAs can also provide general tax advice - structuring for tax efficiency, inheritance etc... but for more detailed advice on tax you really need a tax accountant/advisor.0 -
The hourly rate is likely to be higher than that. Where I work it can be as much as £330 per hour. If a paraplanner is used their charge is around £150 per hour.bobmunro said:HardyAddick said:Would appreciate people’s advice on how much IFAs should charge and on what basis / what % and whether a % of assets.
i have a mix of assets - pension, iSAs (shares and cash) physical BTLs, plus cash on deposits. I don’t mind paying for IFA advice but it should be good obviously. I can deal with the BTLs and cash so don’t see why an IFA should charge a % on these.Should an IFA give general advice and how should they charge?If you just want general advice rather than them managing your portfolio then they will charge by the hour - anything from £150-£300 per hour. Do your SS ISAs need 'managing' above the fees you're already paying the platform? Are your pensions DB or DC or a combination? SIPP? You will already be paying fees for those anyway.IFAs can also provide general tax advice - structuring for tax efficiency, inheritance etc... but for more detailed advice on tax you really need a tax accountant/advisor.
As @bobmunro says, it really depends on what advice you are looking for. A general review of your portfolio to make sure everything is good then you could be charged a one off fee of up to £2000. If you need things being moved onto a platform or new money to be invested then you could be charged a % fee. The % figure could start at 3%, but would probably reduce on a sliding scale depending o how much is being invested or moved. Lowest would probably be 1%.
If you then wanted the funds to be reviewed periodically and regular meetings with your adviser than an ongoing fee would be charged. For this I've usually charged 0.5% pa of the funds under management, but typically you could be looking between 0.75% to 1% pa for anything under £100k.1 -
Are you saying the IFA is charging you a percentage of your rent/property values and a Cash ISA? Seems a bit heavy.HardyAddick said:Would appreciate people’s advice on how much IFAs should charge and on what basis / what % and whether a % of assets.
i have a mix of assets - pension, iSAs (shares and cash) physical BTLs, plus cash on deposits. I don’t mind paying for IFA advice but it should be good obviously. I can deal with the BTLs and cash so don’t see why an IFA should charge a % on these.Should an IFA give general advice and how should they charge?
I’ve never been the biggest fan of the % charge on say SIPP value. Never quite understood why managing a SIPP etc worth £1m costs twice as much as managing one worth £500k.
golfies the expert here on charges, and as indicated really depends though on the service you want.2 -
That is why a decent IFA will discuss charges with you and amend them accordingly.Rob7Lee said:
Are you saying the IFA is charging you a percentage of your rent/property values and a Cash ISA? Seems a bit heavy.HardyAddick said:Would appreciate people’s advice on how much IFAs should charge and on what basis / what % and whether a % of assets.
i have a mix of assets - pension, iSAs (shares and cash) physical BTLs, plus cash on deposits. I don’t mind paying for IFA advice but it should be good obviously. I can deal with the BTLs and cash so don’t see why an IFA should charge a % on these.Should an IFA give general advice and how should they charge?
I’ve never been the biggest fan of the % charge on say SIPP value. Never quite understood why managing a SIPP etc worth £1m costs twice as much as managing one worth £500k.
golfies the expert here on charges, and as indicated really depends though on the service you want.
I have clients on 0.25%, 0.3% & 0.5%. I have one paying 1% on his ISA's but nothing on his Investment Bonds, as any ongoing adviser fee forms part of the 5% tax deferred amount.
(The client paying 0.25% has £2.5m in total invested with me so I would be foolish to increase it).2 -
The IFA set up my pension -a Drawdown by consolidating my work pensions about 3 years ago and charged a one off fee I was happy with.Rob7Lee said:
Are you saying the IFA is charging you a percentage of your rent/property values and a Cash ISA? Seems a bit heavy.HardyAddick said:Would appreciate people’s advice on how much IFAs should charge and on what basis / what % and whether a % of assets.
i have a mix of assets - pension, iSAs with HL (shares and cash) physical BTLs, plus cash on deposits. I don’t mind paying for IFA advice but it should be good obviously. I can deal with the BTLs and cash so don’t see why an IFA should charge a % on these.Should an IFA give general advice and how should they charge?
I’ve never been the biggest fan of the % charge on say SIPP value. Never quite understood why managing a SIPP etc worth £1m costs twice as much as managing one worth £500k.
golfies the expert here on charges, and as indicated really depends though on the service you want.I now want ongoing advice on my pension and stock/share ISAs -all with HLansdown. I’m not prepared to pay % of my BTL or cash to the IFA. The IFA is coming to see me and it’s a question of what he does for ongoing advice / management and what he charges for that ongoing advice.0 -
Did your IFA set up your Drawdown plan with HL ? That's very unusual as they are a client-led site rather than adviser-led and I don't believe that he can take an ongoing fee from them.HardyAddick said:
The IFA set up my pension -a Drawdown by consolidating my work pensions about 3 years ago and charged a one off fee I was happy with.Rob7Lee said:
Are you saying the IFA is charging you a percentage of your rent/property values and a Cash ISA? Seems a bit heavy.HardyAddick said:Would appreciate people’s advice on how much IFAs should charge and on what basis / what % and whether a % of assets.
i have a mix of assets - pension, iSAs with HL (shares and cash) physical BTLs, plus cash on deposits. I don’t mind paying for IFA advice but it should be good obviously. I can deal with the BTLs and cash so don’t see why an IFA should charge a % on these.Should an IFA give general advice and how should they charge?
I’ve never been the biggest fan of the % charge on say SIPP value. Never quite understood why managing a SIPP etc worth £1m costs twice as much as managing one worth £500k.
golfies the expert here on charges, and as indicated really depends though on the service you want.I now want ongoing advice on my pension and stock/share ISAs -all with HLansdown. I’m not prepared to pay % of my BTL or cash to the IFA. The IFA is coming to see me and it’s a question of what he does for ongoing advice / management and what he charges for that ongoing advice.
Advisers wont take fees from non-investment assets such as Cash deposits or BTL's.
I'd be very interested in what he proposes to charge you as the company I work for are in the process of changing the fees charged & for almost all my clients this would mean an increase.....some by a big margin.0
