Member Since: 6th Apr 2010
12th Jul 2019
(1) In your question did you mean interest of £5,500 @ 20% rather than the £5,700 @ 20% as stated ?
(2) Using your numbers with CCH software gives: Scottish IT £11,707.50 and non-Scot. IT £11,667.50, so £40 extra tax in Scotland. In both calculations the dividends are taxed: £2,000 @ 0%, £8,350 @ 7.5% and £4,650 at 32.5%
(3) As ajkidd indicates the personal allowance is set against the employment income in both calculations.
(4) Does your software allow you to switch easily between Scottish IT and non-Scottish IT ? If so, then the taxation of interest and dividends should be the same in both calculations. Only the taxation of the employment income changes.
(5) Can you get a correct Scottish calculation by using smaller values for the two variables: employment and pension premium? If so, then start there and systematically increase one variable at a time until the calculation goes wrong. It's time consuming but this enables the edge of the error region to be determined.
22nd May 2019
In such circumstances CCH software allows the MAT.
14th Jun 2018
CCH gives £6,538.34
13th Jun 2018
To answer your first question, the purpose of submitting the missing annual accounts is to create a filing history at Companies House that looks (at first glance) as if the company was never dissolved. That's what the phrase "administrative restoration" means. Therefore, draw up the September 2016 and September 2017 accounts as if the company continued to exist with accruals for your accounting fees, etc.
7th Jun 2018
You don't say what qualifications you have tax-wise.
There is a world-wide shortage of airline pilots so why not blow your budget and get some wings.
17th May 2018
The HMRC explanation for no. 70 (from version 8.1 of the Exclusions listing) is:
"Where there are dividends in the higher rate nil band (c5.29) but, after deducting allowances, this moves some or all of the dividends to the basic rate then the calculator will not identify that this will leave an amount of dividends at 32.5% that would be advantageous to have allowances set against them. It incorrectly moves allowances back against non-savings/savings."
16th May 2018
16th May 2018
CCH Personal Tax says this may fall under Exclusion 70. In such a situation I refer to the HMRC table of exclusions to consider their specific example.
24th Apr 2018
Could you clarify whether you used your computer or your client's computer to submit the online SA1.
Have you or your client tried running anti-malware software on the relevant machine ? There are several different anti-malware programs available free (as basic versions) on the internet. These can pick up trojans and other spyware that are otherwise undetectable. If you do identify a trojan/spyware then you've got some evidence to offer HMRC phishing.
My problem with the online SA1 is that a recent one never got to HMRC and I eventually had to fax a copy over to them.
23rd Apr 2018
I understand that for 2017/18 there are some very simple income combinations that are not flagged as exclusion cases yet HMRC's 2017/18 calculation handles them incorrectly. Two examples shown to me were: (1) interest £15k, dividends £30k; and, (2) interest £30k, dividends £15k. Your example gives tax of £1,625 when all the PA goes against the interest.