Category: financial advice
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What to Do When HMRC Wants Tax Money Back: A Complete Guide
If HM Revenue and Customs (HMRC) contacts you to say you owe them tax money, the very first thing you need to do is check if their calculation is correct. Do not panic, but do not ignore the letter or bill either. Compare their figures against your own records (like your payslips, P60, or tax…
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What is the HMRC warning for anyone with over 3500 savings in their bank account?
The HMRC warning is a heads-up that having £3,500 or more in savings could mean you owe tax on the interest you earn. Because interest rates have gone up, your money grows faster, meaning you could easily earn more than your tax-free limit. If this happens, your bank automatically tells HMRC, and you could be…
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What is Certificate of Tax Position?
A Certificate of Tax Position is a formal document sent by HM Revenue & Customs (HMRC) asking you to make a declaration about your offshore income and assets. If you receive one, it means HMRC has received information suggesting you might have money, property, or investments overseas, and they want you to confirm whether your…
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Can I share my Government Gateway ID?
You must never share your Government Gateway user ID and password with anyone. This includes your accountant, tax agent, business partner, or family members. Handing over your login details goes against HMRC rules and puts your personal data at serious risk. When you are self-employed in the UK, you already juggle a million different tasks.…
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Do I need to report gifts to HMRC?
The short answer is no. Generally, you do not need to report gifts to HMRC when you give or receive them. There is no immediate “gift tax” in the UK. However, while you don’t have to fill out a tax return or call HMRC just because you gave your child a lump sum of money,…
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Do you have to pay a student loan if self-employed?
Yes, you do have to pay back your student loan if you are self-employed in the UK. Being your own boss does not wipe out your student debt. However, you will only make payments if your business profits go above a certain amount. A Simple Guide to Paying Your Student Loan When Self-Employed Becoming self-employed…
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What is the penalty for voluntary disclosure to HMRC?
The penalty for a voluntary (unprompted) disclosure to HMRC ranges from 0% to 100% of the tax you owe. For careless mistakes, you can often get the penalty reduced to 0%. However, if the error was deliberate, the penalty will be higher—though still significantly lower than if HMRC had to catch you first. Here is…
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How much do accountants charge for capital gains tax?
In the UK, accountants typically charge between £350 and £950 (+ VAT) to handle a straightforward Capital Hicks Tax (CGT) return, such as selling a second home or a basic portfolio of shares. However, if your situation is more complex—like selling a business, handling multiple properties, or claiming special tax reliefs—fees generally range from £1500…
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What happens if you do not declare rental income?
If you do not declare your rental income to HM Revenue & Customs (HMRC), you will have to pay back all the tax you owe, plus daily interest, and you will face heavy financial penalties. In the worst-case scenarios involving deliberate tax evasion, you could face criminal prosecution and potentially go to prison. How HMRC…
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How much can I put in my SIPP before April 5
For most people, the maximum you can put into your SIPP before April 5 is £60,000 or 100% of your earnings (whichever is lower). However, this limit can be higher if you have unused allowance from previous years, or lower if you are a very high earner or have already taken taxable money out of…