BN66 - Time to fight back!!!

[smalldog]

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)

[Grim Reaper]

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% ?

[smalldog]

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 26000

[malvolio]

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)

Agreed it's not accurate, but it will give a worst-case ball park estimate, which is all you need right now.

[Grim Reaper]

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.

[smalldog]

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?

[Grim Reaper]

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.

[smalldog]

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....

[ChimpMaster]

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?

[ContractIn]

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% ?

I'm working on 38% in total of the IOM income to estimate my liability until we get a steer from MTM.