Originally posted by Heathmount
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Personal Allowance Reduction
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'CUK forum personality of 2011 - Winner - Yes really!!!! -
Originally posted by Heathmount View PostHi
After 8 years with my Ltd company I'm now going via a brolly for the first time. I haven't chosen one yet and i'm trying to get and answer to the following question. My day rate will take me over 100k earnings for the year so how and when does the reduction in personal allowance kick in? I asked 3 different companies and had 3 different answers:
Company1. You'll have to sort it out yourself via self assessment.
Company2. HMRC should issue an updated coding notice after month 1 based on estimated earnings.
Company3. HMRC should issue an updated coding notice once your earnings reach 100k.
Totally confused now. I know there's things I could do like pay into a pension to keep me below 100k but I just want to know what the process is. I'd rather it was somehow done via PAYE rather then SA. But then I might be out of work in 6 months and not reach the limit so I'll have overpaid.
thanks
Family allowance + all child care costs also
If applicable
I thought everyone here was £100K+ minimum anyhoo
Sent from my iPhone using Contractor UK ForumComment
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Another angle to consider:
You will have an income for part of the tax year from your PSC too (unless you switched on the change of year), this will be added to your income from the brolly, so you may "appear" to have an income of 108K+
Also, HMRC are not very bright...
I made a similar switch to you. The payroll service had me on weekly terms and notified HMRC. They then took 4 weeks to get the payroll going, so 1st run had 4 weeks worth of dosh in it. HMRC therefore thought I was on 4x the real rate. 20 mins via their chat helpline resolved it.
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Originally posted by northernladuk View PostDidnt the latest judgement against 6Cats out the these lists as illegal?Comment
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