Archived News February, 2012

Tax expert Carmarthenshire Journal 15th February 2012

I have recently received a coding notice from HM Revenue & Customs regarding my employment. How do I know that the right amount of tax is being taken from my salary?

If you are of non-pensionable age your coding notice for next year (2012/12) should be £8,105 or 810L. This means that you can earn up to £8,105 a year before tax is deducted from your salary. If your code is 810L then the notice will explain how it has either increased your tax free amount or reduced it. Carefully check this paperwork to ensure it only includes things that are relevant to your circumstances i.e. company car or professional subscriptions. If the coding notice is incorrect you will need to phone HM Revenue & Customs and explain why it is wrong and they will amend it accordingly.

My company recently went into liquidation, leaving not only amounts due to the creditors but also an amount due to me of £65,000 and my shares of £10,000. As I will not be able to get any money back, can I claim some kind of loss?

I’m sorry to hear of your circumstances, it seems to happening a lot in the current economic climate. As for your position, the £65,000 you have lent the company can be converted into a capital gains loss and can therefore be used to reduce the tax on any current or future sales of assets i.e. property, shares etc. In respect of your shares, if these we new shares issued to you (& not ones already in existence) then you can turn these into a income tax loss of £10,000 and offset it against income for this year and last, which if you paid tax would result in a tax repayment.

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