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Baz46
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Somewhere rural 'out in the sticks', UK
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04-04-2019, 10:31 PM
11

Re: Tax Year

As much as it seems unfair to tax personal pensions, I always thought so too. However, looking at it for what it is tax relief was given on the contributions paid into those personal pension schemes, that allowed more to be invested into the 'pension pot' to provide the pension. Now that relief is 'taken back' by HMRC in the form of tax on what is paid out by way of your personal pension. There is no income tax on the State Pension.

I have to pay tax on my personal pension for that reason and also have to complete a Tax Return each year. This becomes less and less relevant each year as I am now retired so no earnings, any unearned interest up to £1,000 is now tax-free too, another reason not to have to complete a Tax Return. It's only the private pension which makes this necessary now. I often wonder why this is needed as my private pension provider takes the tax at source as instructed by HMRC. They get it right, well almost right, every year. This year though I had a tax demand for underpayment of tax on my personal pension for, wait for it, a whole SEVEN PENCE UNDERPAID Ė more paperwork!
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Uncle Joe
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05-04-2019, 07:38 AM
12

Re: Tax Year

Originally Posted by spitfire ->
UJ, simple has no place in a regime.

You obviously created the regime - so change it - simple !!!
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05-04-2019, 07:39 AM
13

Re: Tax Year

I still think some peoples accounts are based on licking the index finger, and pointing it skywards.
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isle of wight
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06-04-2019, 08:10 PM
14

Re: Tax Year

Originally Posted by spitfire ->
Last day of the Tax Year tomorrow so, started working through some figures, one thing has slightly surprised me, the business mileage allowance is £0.45p per mile, very generous on the face of it, but, in my case, when applied, it is actually worth £0.14p per mile, also, folks are aware of the yearly hike in the Tax personal allowance, they are not so aware of the impact of the NI increases, in fairness they were held at 9% above the threshold for at least five years, but for 2018/2019 was raised to 12%, writing off any benefit of the Tax Threshold increase.
I'm curious as to why the business mileage allowance is only worth £0.14 to you?

My own gripe is that the AMLS (Anti Money Laundering Scheme) Annual Registration fee has increased from £130 pa to £300 pa for anyone with a turnover of £5000+ pa! A massive increase and a tax on small businesses!
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06-04-2019, 09:10 PM
15

Re: Tax Year

Originally Posted by spitfire ->
Last day of the Tax Year tomorrow so, started working through some figures, one thing has slightly surprised me, the business mileage allowance is £0.45p per mile, very generous on the face of it, but, in my case, when applied, it is actually worth £0.14p per mile, also, folks are aware of the yearly hike in the Tax personal allowance, they are not so aware of the impact of the NI increases, in fairness they were held at 9% above the threshold for at least five years, but for 2018/2019 was raised to 12%, writing off any benefit of the Tax Threshold increase.
The HMRC does it all for me, together with my provider .

I resent being taxed on my private pension, selfish of me I know.
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isle of wight
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06-04-2019, 09:15 PM
16

Re: Tax Year

Originally Posted by Robert Junior ->
The HMRC does it all for me, together with my provider .

I resent being taxed on my private pension, selfish of me I know.
Probably wise to check HMRC has used the right figures..........they DO make mistakes sometimes.

Good to know that reciprocal agreements for pensions paid abroad are now taxable in the UK..........would hate to think of all those excessively paid MP's and MEP's were getting any tax free income!
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06-04-2019, 09:32 PM
17

Re: Tax Year

Takes me back spitty, used to do all my tax returns and I was VAT registered also. Spent many late nights sorting out my books and issuing invoices after 12 hours on the road. Sometimes returning home after midnight and removing the sump plug and oil filter before turning in so I could replace oil and filter before my first job came in......

I still flinch when I hear my mobile phone ring......

No books or tax returns to do now though, even though I still pay a little tax on my works pension. They deduct it at source, but I did get it reduced to about £38 after using some of Mrs Foxes allowance to offset my own allowance....
Married couples should check this out if one of you still pays tax.....
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07-04-2019, 07:42 AM
18

Re: Tax Year

Originally Posted by Lindyloo ->
I'm curious as to why the business mileage allowance is only worth £0.14 to you?

My own gripe is that the AMLS (Anti Money Laundering Scheme) Annual Registration fee has increased from £130 pa to £300 pa for anyone with a turnover of £5000+ pa! A massive increase and a tax on small businesses!

Somebody's got to pay for my lavish life-style
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08-04-2019, 08:46 AM
19

Re: Tax Year

Originally Posted by susan m ->
Jazzi , so you dont fill out hmrc tax returns as they do it for you , and Muddy , you have to fill out hmrc forms , it all sounds confusing. I expect some people with very large incomes have to have accountants to pay for the work .

All seems a worry and i would so begrudge giving even more tax out of hard earned pensions
I get an itemised letter from them each year showing my income and what tax code itíll be. Even when Iíve tried calculating it myself I donít get to theirs. But as they know all my pension figures, I depend on them to get it right. Seems no point in me filling out a tax form when nothing has changed. I wonít be getting any more income now, no more pensions to collect.
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susan m
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DORSET UK
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08-04-2019, 12:38 PM
20

Re: Tax Year

Thanks jazzi , it all sounds complicated but as you say you have to trust they get it right .
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