Looks right to me. Based upon a tax code of 1150L tax paid on her employed income looks correct but more to the point tells us that her marginal rate of tax is 20%.
Tax on pension lump sums is calculated using the taxpayer's marginal rate of tax on all other income.
Agree with Tim - I'm pretty sure that for FRS105 it's accounting periods commencing on or after 1 January 2017. Companies House are notorious for being out of date - for years they quoted an out of date FRSSE on their balance sheet notes template.
From the question I think the answer is to submit an amended CT return for last year. The CT charge for this year will be increased by £7.2K (not sure why £6K was quoted). If that's the wrong answer I can use the excuse that the question isn't overly clear or precise.
You're correct that Santander for one do look at accounts. I'm surprised that SA302s are still on the agenda because they've been unavailable for agents for at least a year now.
The Council of Mortgage Lenders have agreed that proprietary software tax calculations will effectively replace the SA302s and need to be shown together with the tax year overview (which merely confirms the tax liability - in many cases zero before the dividend tax).
My experience of these things is that the client sometimes needs to find another broker since they sometimes have a scary lack of knowledge of accounts and taxable income.
To process a salary of £50K in the circumstances you describe would not be acceptable to me for obvious reasons. It's hardly your fault if the lady's figures don't stack up.
A novel way to contribute to a forum - be the first to reply to your own post.
If it's any consolation the people that are now in this position aren't the first to be conned by so called experts. In my lifetime we've had pyramid selling schemes, time shares with dodgy exit terms, pension opt outs etc.
The common theme is that the advisers who set up these rackets (and that's what they are) invariably do so through limited companies and are long gone when the [***] hits the fan.
If we'd all been mugs enough to participate in these schemes the standard rate of income tax would be a lot higher than 20%.
I await the usual protests from the usual suspects.
My reading of the post was that both the deeds and mortgage were in joint names but now have been transferred solely to the son. What started as a tax question has now brought in speculation about fraud and bare trusts. I encounter many examples of parents helping their offspring get on to the property ladder but they have never involved bare trusts. As for fraud only the OP knows what went on the mortgage application form.
My answers
Looks right to me. Based upon a tax code of 1150L tax paid on her employed income looks correct but more to the point tells us that her marginal rate of tax is 20%.
Tax on pension lump sums is calculated using the taxpayer's marginal rate of tax on all other income.
Why do you ask? At least make the question worth answering.
Agree with Tim - I'm pretty sure that for FRS105 it's accounting periods commencing on or after 1 January 2017. Companies House are notorious for being out of date - for years they quoted an out of date FRSSE on their balance sheet notes template.
From the question I think the answer is to submit an amended CT return for last year. The CT charge for this year will be increased by £7.2K (not sure why £6K was quoted). If that's the wrong answer I can use the excuse that the question isn't overly clear or precise.
You're correct that Santander for one do look at accounts. I'm surprised that SA302s are still on the agenda because they've been unavailable for agents for at least a year now.
The Council of Mortgage Lenders have agreed that proprietary software tax calculations will effectively replace the SA302s and need to be shown together with the tax year overview (which merely confirms the tax liability - in many cases zero before the dividend tax).
My experience of these things is that the client sometimes needs to find another broker since they sometimes have a scary lack of knowledge of accounts and taxable income.
To process a salary of £50K in the circumstances you describe would not be acceptable to me for obvious reasons. It's hardly your fault if the lady's figures don't stack up.
A novel way to contribute to a forum - be the first to reply to your own post.
If it's any consolation the people that are now in this position aren't the first to be conned by so called experts. In my lifetime we've had pyramid selling schemes, time shares with dodgy exit terms, pension opt outs etc.
The common theme is that the advisers who set up these rackets (and that's what they are) invariably do so through limited companies and are long gone when the [***] hits the fan.
If we'd all been mugs enough to participate in these schemes the standard rate of income tax would be a lot higher than 20%.
I await the usual protests from the usual suspects.
You've got to love this website. At least we got to 6 posts before fraud was mentioned.
The prospective client wants to form a limited company with the inevitable extra costs and compliance issues involved.
If the CSA deem that the father's partner's income doesn't form part of the calculation it's not the fault of the prospective client.
The only area of concern for me would be (if relevant) a fair and reasonable salary to the partner for work carried out.
My reading of the post was that both the deeds and mortgage were in joint names but now have been transferred solely to the son. What started as a tax question has now brought in speculation about fraud and bare trusts. I encounter many examples of parents helping their offspring get on to the property ladder but they have never involved bare trusts. As for fraud only the OP knows what went on the mortgage application form.
Ha! Ha!
Nice one!
Love that one Lion - create a nominal account "money stolen by bank" and debit it.