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  • RE: State Pension and Self Assessment

    I am currently trying to file my 2023/4 online and also see the prepopulated state pension is different from my expectation, but when I try to enter the correct amount, I am presented with a compulsory comment window asking me to explain/ support the reason for my correction but no matter what I enter in this box, I get an error message saying the only the normal alphabet and digits 0 to 9 as well as certain special characters are acceptable. Not even carriage return is acceptable. I only used the right characters but after many attempts I am still not able get past this Error block and therefore am not able to correct the prepopulated state pension figure. Can anyone offer help please as to what I can do or is it a system problem of the Self Assessment filing? Thanks in advance
  • RE: Refund of tax taken off Foreign divided

    Thank you Admin19 for the additional reply. Can I therefore assume that if some UK income tax is still due against some of my income ( e.g. from property rental profit) then the foreign dividend tax already deducted in Spain would automatically, through Self Assessment, reduce any UK income tax due against my UK income? Regards
  • RE: Refund of tax taken off Foreign divided

    Thank you Admin 8 for your reply. Can you therefore please advise the benefit / purpose of reporting the amount of foreign tax deducted on the self assessment tax return? Regards
  • Refund of tax taken off Foreign divided

    I just filed my 2023/24 paper tax return and following the self assessment guidance notes on foreign dividends income below the £1000 threshold, I was not required to use the Special Foreign pages. Instead I entered on page TR3 of the tax return the following: Box 6 Foreign dividend £720 ( which was from a Spanish company but there was no space on the tax return to specify the country name ) Box 7 Tax taken off ( in Spain) £90 Box 4 UK Dividends £30 As the total dividends ( Foreign & UK) add up to less than £1000, will HMRC refund back to me the £90 foreign tax already deducted in Spain against the Spanish dividend? I know there is a reciprocal tax arrangement between the UK & Spain to avoid double taxation. Thank You
  • RE: Child benefit- what type of pension is deductable

    Hello Admin If my employment income plus income from property rental and dividend income all add up to 65K in 2023/4 tax year but I also contribute 3K to a workplace pension from my NET salary ( after tax has been paid) and also make further voluntary pension contribution to a SIPP ( again from net pay) of 22K , therefore making my total pension contribution (deducted from Net pay) of 25K, would I be entitled to keeping the full child benefit without being subject to the child benefit higher income charge? Thank you
  • RE: Can pension contributions reduce tax on dividend and savings income ?

    Thank you HMRC Admin20 Further to this conversation subject please help by answering this hypothetical scenario for the current tax year 2023/4. If my taxable income from salary/ rental income adds up to £50,000 and I also receive £1250 from Building Society interest and £900 in dividends but I also make gross pension contributions of £10,000 then I understand that the basic rate tax band gets expanded by this £10000 contribution (to £47700 from £37,700) and therefore my total income including the savings interest and dividends (and after taking into account the personal tax allowance) will all fall within this expanded basic rate tax band. Therefore can I assume that my personal saving allowance will be £1000 rather than reduced to £500 and therefore I would only pay tax @ 20% on just the balance of £250 of interest ( £1250 minus £1000) and also I would pay no tax on the dividend because it is less than the £1000 dividend allowance for this tax year. Are the above assumptions correct? Thank you
  • Can pension contributions reduce tax on dividend and savings income ?

    If the gross income including savings and dividend income exceeds the basic tax rate threshold ( £50270) but sufficient gross pension contributions ( that enlarge the basic rate tax band by the same amount) are then paid in that year to ensure that the entire gross income is kept within the expanded basic rate tax band, then: 1 ) will the Personal Saving Allowance PSA be preserved at £1000 ( instead of normally dropping to £500 for higher rate tax payers) and will any remaining savings above that PSA be then taxed at the basic rate instead of the higher rate? 2) will the dividend income above the £2000 dividend allowance be taxed at the basic rate ( 8.75%) instead of the higher rate?