Mal not sure that is right.....firstly you need to use up the basic rate band before the 40% kicks in. Secondly its only on the trust income you received, not the effective salary payment (remember u get paid in two lumps) element as we paid yearly tax on that separately (those of you in the scheme will understand what I mean here)
- Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
- Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!
BN66 - Time to fight back!!!
Collapse
This topic is closed.
X
X
Collapse
Topic is closed
-
-
Should be the figure in your SA foreign income treated as salary -i.e Tax minus allowances. 40% + fines should be too high - More like 33% ?Last edited by Grim Reaper; 28 May 2008, 12:04.Comment
-
Grim exactly...so its 20% upto £36k then 40% for the remainder. so say you earnt £100k in total...very rough quick calc by the way:
bands income tax to pay
total income 100000
deduct personal allowance 4500
amount due for tax 95500
20% 36000 7200
40% 59500 23800
total tax to pay 31000
deduct tax already paid for that year 5000
net tax excluding interest per year 26000Last edited by smalldog; 28 May 2008, 12:17.Comment
-
Originally posted by smalldog View PostMal not sure that is right.....firstly you need to use up the basic rate band before the 40% kicks in. Secondly its only on the trust income you received, not the effective salary payment (remember u get paid in two lumps) element as we paid yearly tax on that separately (those of you in the scheme will understand what I mean here)Blog? What blog...?Comment
-
Cheap at twice the price, SmallDog !
I would however stress that some of your allowances would of already been used up by the Employed section of the SA, but not very much.Last edited by Grim Reaper; 28 May 2008, 12:21.Comment
-
grim big numbers and I dont disagree about your points on income in the SA. Also variable personal allowances and tax bands since the scheme started
pretty scarry numbers..!! wonder if HMRC would be perpared to take approx 2000 people to court and bankrupt them as I cant see many people who have been in the scheme a while being able to pay?Last edited by smalldog; 28 May 2008, 12:31.Comment
-
Its anyones guess as to how far they would go and even if they are open to negociation if it went their way. All they seem to be doing is sending out masses of sudo-demands to make you feel uncomfortable, but when you contact the signer, he/she has no power to comment. For example, when I told them that getting acounts from MTM was not going to be easy, let alone 30 days, all they can do is shrug their shoulders. Even though its not our fault, they are quite quick off the mark when it comes to dishing out fines.
Easy £££ for them.Comment
-
I do wonder how much of this is posturing on the part of HMRC in the hope people will pay up....Can tehy really be bothered to risk taking it to court....will be interesting to see....Comment
-
Regarding the amount of tax you might have to pay back (40% plus interest), couldn't HMRC also charge penalties up to 100% of the outstanding amount? Hence doubling the demand?Comment
-
Originally posted by Grim Reaper View PostShould be the figure in your SA foreign income treated as salary -i.e Tax minus allowances. 40% + fines should be too high - More like 33% ?Comment
Topic is closed
- Home
- News & Features
- First Timers
- IR35 / S660 / BN66
- Employee Benefit Trusts
- Agency Workers Regulations
- MSC Legislation
- Limited Companies
- Dividends
- Umbrella Company
- VAT / Flat Rate VAT
- Job News & Guides
- Money News & Guides
- Guide to Contracts
- Successful Contracting
- Contracting Overseas
- Contractor Calculators
- MVL
- Contractor Expenses
Advertisers
Contractor Services
CUK News
- Streamline Your Retirement with iSIPP: A Solution for Contractor Pensions Sep 1 09:13
- Making the most of pension lump sums: overview for contractors Sep 1 08:36
- Umbrella company tribunal cases are opening up; are your wages subject to unlawful deductions, too? Aug 31 08:38
- Contractors, relabelling 'labour' as 'services' to appear 'fully contracted out' won't dupe IR35 inspectors Aug 31 08:30
- How often does HMRC check tax returns? Aug 30 08:27
- Work-life balance as an IT contractor: 5 top tips from a tech recruiter Aug 30 08:20
- Autumn Statement 2023 tipped to prioritise mental health, in a boost for UK workplaces Aug 29 08:33
- Final reminder for contractors to respond to the umbrella consultation (closing today) Aug 29 08:09
- Top 5 most in demand cyber security contract roles Aug 25 08:38
- Changes to the right to request flexible working are incoming, but how will contractors be affected? Aug 24 08:25
Comment