PAYE 6 Years on

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qureshia

Original Poster:

4,226 posts

208 months

Sunday 13th January 2013
quotequote all
Just done my 2011/2012 tax return

I was lucky enough to have earned (gross) almost exactly what I did in 2004/2005, (after a number of
learner years)

Yet somehow the tax man managed to raise his share of my earnings by a whopping 15% (100% paye) furious


I am perhaps a little more "left of centre" than most of the PH'ers however I am now left thinking enough is enough. I pay for my kids education, we have our own medical insurance, made my own pension provesions, never taken any benefits (beyond universal ones such as child benefit)

Arrrrh - rant over

Puggit

48,535 posts

250 months

Sunday 13th January 2013
quotequote all
If your earned over £100k then Darling created a nice surprise in his final budget to lose your tax free allowance, essentially this creates a 60% tax rate for £100k-£112k.

I'm hitting back by looking at tax avoidance methods...

Stedman

7,234 posts

194 months

Sunday 13th January 2013
quotequote all
Puggit said:
If your earned over £100k then Darling created a nice surprise in his final budget to lose your tax free allowance, essentially this creates a 60% tax rate for £100k-£112k.

I'm hitting back by looking at tax avoidance methods...
Not that it effects me, but that's 'interesting' - thanks.

jonah35

3,940 posts

159 months

Monday 14th January 2013
quotequote all
qureshia said:
Just done my 2011/2012 tax return

I was lucky enough to have earned (gross) almost exactly what I did in 2004/2005, (after a number of
learner years)

Yet somehow the tax man managed to raise his share of my earnings by a whopping 15% (100% paye) furious


I am perhaps a little more "left of centre" than most of the PH'ers however I am now left thinking enough is enough. I pay for my kids education, we have our own medical insurance, made my own pension provesions, never taken any benefits (beyond universal ones such as child benefit)

Arrrrh - rant over
Isnt that what labour voters want? Youre supporting the state and the unemployed and the people that cant or dont want to work.

Derek Smith

45,856 posts

250 months

Monday 14th January 2013
quotequote all
qureshia said:
Just done my 2011/2012 tax return

I was lucky enough to have earned (gross) almost exactly what I did in 2004/2005, (after a number of
learner years)

Yet somehow the tax man managed to raise his share of my earnings by a whopping 15% (100% paye) furious


I am perhaps a little more "left of centre" than most of the PH'ers however I am now left thinking enough is enough. I pay for my kids education, we have our own medical insurance, made my own pension provesions, never taken any benefits (beyond universal ones such as child benefit)

Arrrrh - rant over
Don't just rant. Do something.

After being kneed in the balls by HMRC last year, this time I went with an accountant. Last week I got my bill. It was under £1000 so I had to pay it all before the end of this month. I couldn't believe how low it was. Fair enough, part of the reason was that they claimed back some of what I overpaid last year (which HM struggled to find when I tried to get it back), but still, it is remarkable how low it all is. I actually checked with the accountant to ensure there was no mistake but she said as long as I could prove my claims - which I can and a little more just in case - then that's it for me.

DonnyMac

3,634 posts

205 months

Monday 14th January 2013
quotequote all
Why are you doing a tax return if you're PAYE?


Puggit

48,535 posts

250 months

Monday 14th January 2013
quotequote all
DonnyMac said:
Why are you doing a tax return if you're PAYE?
In my case because I also own and occasionally rent out a holiday house.

Rude-boy

22,227 posts

235 months

Monday 14th January 2013
quotequote all
DonnyMac said:
Why are you doing a tax return if you're PAYE?
If you are 40% you have to, it's the law.

Puggit

48,535 posts

250 months

Monday 14th January 2013
quotequote all
Derek Smith said:
Don't just rant. Do something.
Another good plan: http://moneytothemasses.com/readers-question-i-ear...

This is a lovely way to get back money as money added to pensions is not taxed - meaning you can reclaim 20% tax relief on the money paid in to your pension.

The company are also pleased not to be paying some NI contributions.

Puggit

48,535 posts

250 months

Monday 14th January 2013
quotequote all
Rude-boy said:
DonnyMac said:
Why are you doing a tax return if you're PAYE?
If you are 40% you have to, it's the law.
That's not quite true: http://www.hmrc.gov.uk/sa/need-tax-return.htm

Over £100k needs to, but not simple 40% earners...

randlemarcus

13,538 posts

233 months

Monday 14th January 2013
quotequote all
Puggit said:
Rude-boy said:
DonnyMac said:
Why are you doing a tax return if you're PAYE?
If you are 40% you have to, it's the law.
That's not quite true: http://www.hmrc.gov.uk/sa/need-tax-return.htm

Over £100k needs to, but not simple 40% earners...
What about those slightly over £100k, but who have raised their pension provision (via Salary Sacrifice) to ensure they fall just under it? P.S. Just call me Jimmy Carr biggrin

DonnyMac

3,634 posts

205 months

Monday 14th January 2013
quotequote all
randlemarcus said:
What about those slightly over £100k, but who have raised their pension provision (via Salary Sacrifice) to ensure they fall just under it? P.S. Just call me Jimmy Carr biggrin
Much to learn young padawan you have. hhharrmm.

Ozzie Osmond

21,189 posts

248 months

Monday 14th January 2013
quotequote all
Puggit said:
lose your tax free allowance, essentially this creates a 60% tax rate for £100k-£112k.
Yes, there are some very aggressive "effective" tax rates where the allowances are being withdrawn. This is especially tough on pensioners where oldsters pay an effective rate of 30% tax on income between £25,000 and £30,000 p.a.

This whole concept of raiding savers and pensioners to make good the bankers' recklessness is a national disgrace.

Soovy

35,829 posts

273 months

Monday 14th January 2013
quotequote all
Ozzie Osmond said:
Puggit said:
lose your tax free allowance, essentially this creates a 60% tax rate for £100k-£112k.
Yes, there are some very aggressive "effective" tax rates where the allowances are being withdrawn. This is especially tough on pensioners where oldsters pay an effective rate of 30% tax on income between £25,000 and £30,000 p.a.

This whole concept of raiding savers and pensioners to make good the bankers' recklessness is a national disgrace.
Oh please.

"Make good the bankers' recklessness" rofl

They're doing it to pay for big houses for illegal immigrants and for SKY TV and fags for people who can't be bothered to work.


Eric Mc

122,236 posts

267 months

Monday 14th January 2013
quotequote all
Puggit said:
Rude-boy said:
DonnyMac said:
Why are you doing a tax return if you're PAYE?
If you are 40% you have to, it's the law.
That's not quite true: http://www.hmrc.gov.uk/sa/need-tax-return.htm

Over £100k needs to, but not simple 40% earners...
An awful lot of PAYE people who pay tax at 40% should really be completing tax returns.

However, there is not an automatic requirement for a 40% PAYE earner to do so. Often times they really should as they might not be paying enough tax on income outside of their salary (such as dividend income or bank interest received) or they might be missing out on extra tax reliefs avaialble on personal pension amounts they pay or donations they make to charity during the tax year.

Anyone who is in the Higher Rate Bands should review their situation each year to ascertain if they really should be making self assessment returns.

Rude-boy

22,227 posts

235 months

Monday 14th January 2013
quotequote all
randlemarcus said:
Puggit said:
Rude-boy said:
DonnyMac said:
Why are you doing a tax return if you're PAYE?
If you are 40% you have to, it's the law.
That's not quite true: http://www.hmrc.gov.uk/sa/need-tax-return.htm

Over £100k needs to, but not simple 40% earners...
What about those slightly over £100k, but who have raised their pension provision (via Salary Sacrifice) to ensure they fall just under it? P.S. Just call me Jimmy Carr biggrin
Naff.

Should have checked my facts, sure it was 40% at one time but heyho!

I have to do one as a Company Director (natch this being PH an all).


Eric Mc

122,236 posts

267 months

Monday 14th January 2013
quotequote all
Company directors do not automatically have to submit self assessment tax returns.

Like any other person, they only need to do so if they have income that needs to be taxed under self assessment.

randlemarcus

13,538 posts

233 months

Monday 14th January 2013
quotequote all
DonnyMac said:
Much to learn young padawan you have. hhharrmm.
Mostly that decent avoidance schemes are not useful for PAYE victims.

Rude-boy

22,227 posts

235 months

Monday 14th January 2013
quotequote all
Eric Mc said:
Company directors do not automatically have to submit self assessment tax returns.

Like any other person, they only need to do so if they have income that needs to be taxed under self assessment.
Interesting as it is most certainly up there on the HMRC link the other poster provided but for some reason i would trust your advice over a bloody word HMRC says!

That said I also get a letter each year (or have for the last 3!) from HMRC telling me I have to so like a good boy I do. First year I owed them about 20p, last year they owed me about £200 and this year I owe them £70ish so all in I'm 'up' on them at the minute, and not a little unsmug that for once in my life I had filed before the month has even broken into the teens biggrin

DonnyMac

3,634 posts

205 months

Monday 14th January 2013
quotequote all
randlemarcus said:
DonnyMac said:
Much to learn young padawan you have. hhharrmm.
Mostly that decent avoidance schemes are not useful for PAYE victims.
Ahh, sorry to hear of your affliction Mr Carr.