Autumn Statement 2015

[dandarez]

Welshbeef said:

Working tax credits reform scrapped!

beat you to it!

[Welshbeef]

Dave_ST220 said:

Eric Mc said:

We are seeing the beginning of the end of the Self Assessment tax return.

What would take its place?

"Live" tax code changes ie payrol feeds directly into HMRC so they can amend tax code month by month to ensure it is correct.

Tax at source for sale of capital assets hmm.
Drastically less work for accountants

[Gecko1978]

Welshbeef said:

Working tax credits reform scrapped!

how muck do you have to earn to get this and when is it cut. Seems a lot of folk get it but its like an alternative to cutting the basic rate. Why bother? (I have never recieved it so am on the dark about it)

[Welshbeef]

Pensions now.

New single tier up to £155.65 per week or £8,093.80 per year

[Smollet]

Welshbeef said:

Pensions now.

New single tier up to £155.65 per week or £8,093.80 per year

Provided you've pain into it long enough. It should be based on how long you've paid or how much you've paid in. I'm in the situation where I paid a lot in but not for enough years so I won't even qualify for that figure. I'll get about £112 pw.

[Eric Mc]

Welshbeef said:

"Live" tax code changes ie payrol feeds directly into HMRC so they can amend tax code month by month to ensure it is correct.

Tax at source for sale of capital assets hmm.
Drastically less work for accountants

Not at all. The underlying tax rules will be just as complicated as they ever were. What will happen is that tax payments to the Exchequer will be accelerated - so MORE work and deadline pressure for accountants.

[Welshbeef]

Smollet said:

Welshbeef said:

Pensions now.

New single tier up to £155.65 per week or £8,093.80 per year

Provided you've pain into it long enough. It should be based on how long you've paid or how much you've paid in. I'm in the situation where I paid a lot in but not for enough years so I won't even qualify for that figure. I'll get about £112 pw.

So £5.8k but you didn't work long enough to qualify. How many years out of interest? None the less £485 for an individual from 65yo for life add in your other half plus any private pensions no mortgage no need for 2 cars and the ability to go on holidays out of peak season means a good lifestyle.

[MEC]

Eric Mc said:

Not at all. The underlying tax rules will be just as complicated as they ever were. What will happen is that tax payments to the Exchequer will be accelerated - so MORE work and deadline pressure for accountants.

"Live" Payroll data is already sent to HMRC under the RTI rules, not that they seem to make best use of it! Tax codes are amended through the year as required (and again, not always correctly).

I can't see the workload of a typical "small business" accountant reducing anytime soon, the rules get more onerous and confusing year on year with more and more penalties for non-compliance.

[ukbabz]

Sounds like he's going after whiplash claims too.. should be interesting to see whether the insurance market pass that saving on!

[Rovinghawk]

Gecko1978 said:

how muck do you have to earn to get this and when is it cut. Seems a lot of folk get it but its like an alternative to cutting the basic rate. Why bother? (I have never recieved it so am on the dark about it)

It's nothing to do with the tax system- the name was classic G.Brown misdirection.

It's part of the benefit system.

[Eric Mc]

Tax Credits replaced, in some cases, certain tax allowances that people used to get. Apart from that, the term "Tax" was a misnomer.

[Ganglandboss]

What was that? I just caught '...while his front bench contributes to comedy!'.

[Dave_ST220]

Welshbeef said:

Dave_ST220 said:

Eric Mc said:

We are seeing the beginning of the end of the Self Assessment tax return.

What would take its place?

"Live" tax code changes ie payrol feeds directly into HMRC so they can amend tax code month by month to ensure it is correct.

Tax at source for sale of capital assets hmm.
Drastically less work for accountants

Self Assessment & payrole (PAYG?) two things surely?

This is why I pay an accountant. All I know is twice a year I pay HMRC a stack of cash, what will change?

[richardxjr]

Welshbeef said:

So £5.8k but you didn't work long enough to qualify. How many years out of interest? None the less £485 for an individual from 65yo for life add in your other half plus any private pensions no mortgage no need for 2 cars and the ability to go on holidays out of peak season means a good lifestyle.

Yes. Good lifestyle any many holidays guaranteed for all pensioners now

[truck71]

Ganglandboss said:

What was that? I just caught '...while his front bench contributes to comedy!'.

The honourable member for Hull makes a contribution to arts and culture whilst his front bench contributes to comedy. Or something like that.

[Welshbeef]

Ganglandboss said:

What was that? I just caught '...while his front bench contributes to comedy!'.

Superb

[Smollet]

Welshbeef said:

So £5.8k but you didn't work long enough to qualify. How many years out of interest? None the less £485 for an individual from 65yo for life add in your other half plus any private pensions no mortgage no need for 2 cars and the ability to go on holidays out of peak season means a good lifestyle.

33 years. What other half?

[Zoon]

Dave_ST220 said:

Self Assessment & payrole (PAYG?) two things surely?

This is why I pay an accountant. All I know is twice a year I pay HMRC a stack of cash, what will change?

They are two things.
You should be paying PAYE monthly and outstanding SA tax yearly.
Why twice a year?

Nothing will change you'll still pay tax, just the mechanism which collects it may change.

[Eric Mc]

Dave_ST220 said:

Self Assessment & payrole (PAYG?) two things surely?

This is why I pay an accountant. All I know is twice a year I pay HMRC a stack of cash, what will change?

Nothing overnight.

He mentioned back in the Spring Budget that he was setting in motion a timetable that would see the end of the need to complete the Self Assessment tax return.
He didn't specify at the time exactly how that would be achieved but obviously people will still need to notify HMRC how much income they have each year and pay over the appropriate tax and NI arising.

Under the current system ( which was introduced in 1995/96), most people pay tax under the PAYE system and consequently don't need to complete a tax return. Tax returns are necessary for those who have sources of income that are NOT currently taxed at source - so you need to complete an SA return if you are self employed, have rental income, have had a Capital Gain during the year, are a higher rate taxpayer whop may be under PAYE but may have other income or tax relief claims that can only be assessed properly by a separate notification to HMRC under the SA system.

It looks like the first area that will be taken out of Self Assessment will be Capital Gains Tax.

The most difficult area to remove from SA will be those who operate as Sole Traders. Sole Traders pay tax on their business profits - which they are usually not in a position to know until at the very least a month or two after the end of their business year. How they could pay "real time tax" when they don't know what their profits are is going to be interesting.

[Eric Mc]

Zoon said:

Dave_ST220 said:

Self Assessment & payrole (PAYG?) two things surely?

This is why I pay an accountant. All I know is twice a year I pay HMRC a stack of cash, what will change?

They are two things.
You should be paying PAYE monthly and outstanding SA tax yearly.
Why twice a year?

Nothing will change you'll still pay tax, just the mechanism which collects it may change.

Under Self Assessment, many people pay their tax in two tranches each year. On 31 January they pay the balance they owe for the previous tax year plus the first installment of their tax for the following tax year. On 31 July they pay the second installment of their next tax year's liability.