The Taxman Taketh 40%

[fisicx]

Venturing into strange and dark territory here...

Money and its doings are the devil's seed but an accountant I must seek afore my quest is ended.

Ok I have two income streams, personal allowance and whatever is connected to income A. Income B is much smaller and I pay tax/NI on the whole lot.

The taxman has written to me to say the tax code for Income B from April 2010 is D0 and I will be paying 40% tax apparently on the whole amount. A check on the HMRC website doesn't help because I don't know what I'm looking for.

Since my financial skills just about extend to counting out the right change for a pint could one of you fiscal experts give me a clue as to what is pertaining.

[elainec100@cheapaccounting]

D0 is here:

http://www.hmrc.gov.uk/incometax/codes-basics.htm

If this is wrong:

http://www.hmrc.gov.uk/incometax/code-wrong.htm

Just had a client contact me about this today!

[Mystro]

Venturing into strange and dark territory here...

Money and its doings are the devil's seed but an accountant I must seek afore my quest is ended.

Ok I have two income streams, personal allowance and whatever is connected to income A. Income B is much smaller and I pay tax/NI on the whole lot.

The taxman has written to me to say the tax code for Income B from April 2010 is D0 and I will be paying 40% tax apparently on the whole amount. A check on the HMRC website doesn't help because I don't know what I'm looking for.

Since my financial skills just about extend to counting out the right change for a pint could one of you fiscal experts give me a clue as to what is pertaining.

40% tax, I knew you were charging too much :eek:

Only joking I would go get yourself a Good accountant and let him take care of that side for you,

I pay £100 per month all in includes payroll year end accounts everything, i know people who pay a lot more and some that pay less but i dont worry about any of it including advice

[elainec100@cheapaccounting]

This is good reading as well for you:

http://www.hmrc.gov.uk/incometax/check-multiple-codes.htm

[fisicx]

OK, got that thanks Elaine.

Why have they decided after 5 years to suddenly increase the tax? I thought tax was calculated on the whole income not just cherry picked.

For example If I had a day job and worked evenings in a bar would that be taxed at 40% as a second job?

Mystro, I wish! All my money combined still doesn't reach the 40% threshold.

[elainec100@cheapaccounting]

Same with my client - me thinks a few cock ups have happened.

My advice - write to them, tell them it is wrong!

I do a lot of those types of letters each week with HMRC :rolleyes:

If I had a pound for each one - they would tax me at 40% on it :D:D

[fisicx]

I tried calling them this morning but apparently they aren't answeing questions about the new tax codes until after 31 Jan.

Meanwhiles, I shall indeed select a new quill and inscribe upon a parchment the iniquities of the current situation and the ill-disposed assessment of my income.

[elainec100@cheapaccounting]

Personally I never rely on a telephone call with them - I need things in writing!!!! To refer back to when they get it wring again!

[David Griffiths]

I tried calling them this morning but apparently they aren't answeing questions about the new tax codes until after 31 Jan.


That takes the biscuit!

They don't want to be troubled with the new tax codes, but it's OK to send them out so that all of the accountants get questions to deal with! And to screw up a huge proportion of them, so that there are even more questions!

(Polite) words fail me!

[dp0848]

Same with my client - me thinks a few cock ups have happened.

My advice - write to them, tell them it is wrong!

I do a lot of those types of letters each week with HMRC :rolleyes:

If I had a pound for each one - they would tax me at 40% on it :D:D


I've heard that your making so much money Elaine that you'll being paying the new 50% rate come next year. :D

[Tom McClelland]

If your combined income from all sources doesn't reach c. £6470+£37400 then D0 is simply an error, and they should actually be charging you at BR.

If the first job does pay at that level then it would definitely be correct to charge the second job at D0.

[fisicx]

Thanks Tom,

Next problem is to contact the taxman and ask for it to be changed. Now I'll just pop down the local tax office....Ok then I'll just ring the regional office....Right, I'll send them an email....Sigh, so much for the mordern, technological, customer centric government - I'm left with the option of a letter or sitting on hold for an hour or two.

(I'll have to come on this forum more often, you are much more friendly than the vultures over on the SEO gallows)

[elainec100@cheapaccounting]

HMRC are nto good with modern technology - hence the reason that the tax code is wrong!!!!!

They generally do not allow staff to give our email addresses and are always miles behind in dealing with their post.

Sorry - but am sounding a little jaded about them as have to deal with them day in day out :eek::rolleyes::(

[Scott-CopyandDesign]

http://news.bbc.co.uk/1/hi/business/8478271.stm

[KM-Tiger]

(I'll have to come on this forum more often, you are much more friendly than the vultures over on the SEO gallows)

Just make sure you don't post anything about changing Polish notes at the bank!

[Tin]

(I'll have to come on this forum more often, you are much more friendly than the vultures over on the SEO gallows)

Absolutely, it's like a nice stroll alongside a riverbank in here compared to a ringside seat over at Madison Square Gardens (seo forum) on a Tyson night:eek:;)

Ray

[elainec100@cheapaccounting]

Absolutely, it's like a nice stroll alongside a riverbank in here compared to a ringside seat over at Madison Square Gardens (seo forum) on a Tyson night:eek:;)

Ray


Blimey - what do you guys get up to over there. I have never been in there - would I be allowed to visit! Sounds a bit scary.

See I knew that the accounts and tax forum was the best one on here :D:D:D

[Tin]

Blimey - what do you guys get up to over there.

Can't say as it's all secrety types of things, you know... I'll tell you my secret if you tell me yours.;)

I have never been in there - would I be allowed to visit! Sounds a bit scary.

Yes, you can visit but you need to be "invited" by one of the elders (oh, and it helps if you can do funny handshakes, stand on one leg while whistling Dixie and all that sort of stuff)... anyway, I'm off now lest I get a Strike from Alpha for taking this thread off topic :eek:

Hopefully, see you on the dark side sometime soon :)

Ray

[elainec100@cheapaccounting]

Can't say as it's all secrety types of things, you know... I'll tell you my secret if you tell me yours.;)



Yes, you can visit but you need to be "invited" by one of the elders (oh, and it helps if you can do funny handshakes, stand on one leg while whistling Dixie and all that sort of stuff)... anyway, I'm off now lest I get a Strike from Alpha for taking this thread off topic :eek:

Hopefully, see you on the dark side sometime soon :)

Ray

Oh I think I will need my hand holding to go over there. There are some really scary people on this forum. :eek:

Alpha is a pussy cat:eek: - he won't give you a strike :D

[elainec100@cheapaccounting]

Just had a quick peak at the SEO forum and all it said was blah, blah, blah, blah, blah.

Well that's what it looked like to me :):p:D

[KM-Tiger]

... all it said was blah, blah, blah, blah, blah.

It getting the order you say it in right that counts.

Hang around there for a few years and you'll begin to see the subtle differences.