The Tax Questions Blog

Archive for February, 2009

If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!

Question: How much will my car tax be?

I have just got a new car, but cannot tax it until I get the insurance documents through.

Its a Y reg (Which I think is March 2001) 1.8 Ford Mondeo LX.

Is there any way of finding out how much that will cost? (Without having to wait a week to tax it!)

Answer: Depends on where you live in the UK you could check on the DVLA website.

Look at your logbook check the co2 emissions. I am taking a guess at around £170 for 12 months, but here is a list for you to look at.
Co2 101-120-£35
121-150-£120, 151-165-£145, 166-185-£170, over that £210

Hope i was of some use.

Ema x

Council tax payers deserve much better

Although we live Scotland we do expect certain standards of care. Our family live in a small town in Moray called Forres. Since Saturday, December 19, we have encountered normal winter weather ie snow, ice, black ice etc.

Car tax and it's hidden stealth tax.

The current downturn in the global economy has created an environment with an ever-increasing level of threats to all of us. These threats are often outside of your control and therefore, there is little or nothing that you can do to stop them affecting you. However, the degree to which these threats affect you can be limited by taking ownership over the factors that you can control.

First things first

The first thing that you can do is to act now and seek to protect yourself against the threat of redundancy. At present, there are policies available that can provide you with a replacement income in the event of involuntary unemployment. There are also products, such as mortgage repayment protection, that can cover your mortgage repayments in the event of redundancy. These products do not pay out indefinitely, but can help you to manage your way through a potential cash-flow crisis in the initial period after redundancy. Obviously, there is a cost involved in taking out one of these policies, so it is important to identify how this cost may affect your current cash-flow position. That said, this kind of protection can help you get through the initial stages of your redundancy and allow you the financial freedom to plan for the future. In turn, by limiting the immediate effects on your cash-flow, it can give you an opportunity to reassess your career path and may also allow you the opportunity to re-skill for an entirely new career.

Already Redundant?

If it's too late to protect yourself against the threat and you are faced with the reality of redundancy, you need to understand all of the implications this has on your personal economy so that you can adequately plan the road ahead. The tax treatment of redundancy payment is the first area that you need to manage and control. There are a number of reliefs available to you on a redundancy payment that can help reduce your tax liability. The relief option you choose is not always a straight-forward case of selecting the largest relief, as in some cases you may be waiving your rights to a tax-free lump sum from your pension on retirement. So although you may receive more now, you may be forfeiting a lot more in the future. Therefore, selecting the appropriate relief is vital and it is important that you take independent advice to ensure that the right decision is made.

There is also a further relief called 'Top Slice' relief that is available to you in the year of redundancy. Many people tend to overlook this relief due to that fact that you can only claim it at the end of the tax year. In many cases, by not claiming Top Slice relief people can miss out on substantial tax rebates. This is valuable money needed to help you financially following a redundancy and could be lost if you do not know how to claim it back. Taking control of your pension fund is the next area that must be looked at in the event of redundancy.

If you have been in pensionable employment for a number of years, it is likely that you have built up a substantial pension fund within the company pension scheme. This is a valuable part of your personal economy and it is therefore vital that you make the right decision in relation to this. The event of redundancy can often resulting an opportunity for you to take ownership and control of your pension fund. In certain circumstances, it is now possible to take ownership of the fund that you have built up within the company pension.

Ownership in this case does not simply mean giving you the ability to choose where your money is invested pre-retirement, but also involves the ownership of the money post-retirement. In a typical company pension scheme, owning the pension fund post-retirement is not possible as in most cases, you will be forced to buy an annuity or income for life. This involves giving away the fund that you have built to an insurance company who will pay you a certain amount for as long as you live. The key unknown in this equation is how long you are going to live. If, by taking ownership of the pension fund, you can keep control of the total value of the fund, you now open up new possibilities post-retirement. It also means that you no longer have to give away your fund to a third party, but can now control and manage your asset in retirement. By taking ownership of your pension fund, you now have the ability to bring another part of your personal economy under tighter control and possibly open up options that would not have previously been available to you.

Living & Working in Italy: A Survival Handbook $24.95 Fully updated and revised 2nd edition. Essential reading for anyone planning to live or work in Italy and the most up-to-date source of practical information available about everyday life. It's guaranteed to hasten your introduction to the Italian way of life, and, most importantly, will save you time trouble and money! The best-selling and most comprehensive book about living and working in Italy...

Know Your Rights: A Practical Guide to Living in Challenging Times $14.98 ...

Deverell confirms Salford move

BBC North's chief operating officer has confirmed that he will be moving to Salford as relocation creates tension among BBC staff The BBC North chief operating officer, Richard Deverell, confirmed yesterday that he would be moving to Salford, saving his boss, Mark Thompson, embarrassment over his public commitment that key executives were set on the move . "I will probably rent in the short term ...

Question: Does anyone know if an inheritance would be classed as taxable income?

I know someone whose parents died, leaving them a fairly large sum of money (around AU$60 000). Their ex-spouse is trying to claim a portion of it as child maintenance/support, but I was under the impression that it isn't classed as taxabe income as it is a "gift" and Child Support is supposed to be based upon taxable income...?. Does anyone know about this or had it happen to them?

Answer: Not quite sure how it works in AU, but in the US, inheritances and life insurance proceeds are completely non-taxable.

Ernst & Young's Financial Planning Essentials (Ernst and Young's Financial Planning Essentials) $6.99 Ernst & Young's Financial Planning Essentials makes it easier than ever to take control of your money and start reaching your financial goals today. Drawing on the incomparable experience of Ernst & Young, it's packed with practical tips and strategies to start you on the road to smart financial planning. This short, handy guide covers all the basics, including: * Understanding your current financ...

Personal Finance For Canadians For Dummies $29.99 Take control of your finances!The latest on how to save more, invest wisely, and plan for the future.Do you need help managing your financial priorities? Relax! This friendly guide give you just the information you need to take control of your finances and make the most of your money. Whatever your income level, whatever you financial goals, the updated edition of this national bestseller is the C...

Ernst & Young's Personal Financial Planning Guide (Ernst and Young's Personal Financial Planning Guide) $3.00 From the vast experience of Ernst & Young LLP, the renowned leaders in financial and tax planning services, comes the completely updated Ernst & Young?s Personal Financial Planning Guide, Special Tax Edition. With the Economic Growth and Tax Relief Reconciliation Act of 2001 passed, this Special Tax Edition gives you the investment strategies and updated tools necessary to make sound financial dec...

City squeezing its way to a balanced budget

"Bare bones" and "lean" were the words used to describe the 2011 city budget during a Le Mars City Council workshop Tuesday. "We asked all the departments to make a 10 percent cut after we've had cuts the last two years," Assistant City Administrator Bill Cole said. "There is not a lot of cushion."

Considerations for Senior Taxpayers

Question: Do Tax Returns come back on the weekends as well as week days?

.... Will tax returns hit your bank account on weekends?

Answer: The IRS releases REFUND on early Friday mornings. Some banks take couple of business days to post the amount.

...

Avery Clear Full-Sheet Labels, Inkjet Printers, 8.5 x 11 Inches, Pack of 25 (8665) $16.89 Use your inkjet printer to create professional custom look clear labels that virtually disappear on colored envelopes. Easy peel feature speeds up labeling....

Avery® White Full-Sheet Labels for Inkjet Printers with TrueBlock(TM) Technology, 8-1/2 inches x 11 inches, Pack of 25 (8165) $4.87 Don't want labels that look like all the rest? Design your own with these White Full-Sheet Labels with TrueBlock™ Technology. No other label can completely cover everything underneath, yet present clean, bright and professional results every time. Free templates from avery.com and large 8-1/2" x 11" sheets enable you to create one-of-a-kind labels in a variety of custom shapes and sizes. When yo...

City leaders say 2009 saw ups and downs

Every 365 days, the new year serves as a stopping point for us to look back and see what we wish we'd done better, and to look forward and think about how to improve.

Turbo Tax Rap - Turbo Tax (I Like That) - Tax Rap Contest

Question: Is the distribution of cash from an estate or trust taxable?

A decendants trust testamentary distribution is what is involved.

Answer: if you are a child or grandchild, then most if not all of the distribution to you will be tax exempt. Each state is different, but the fed limit is 2 million I believe.

PassKey EA Review Workbook: Six Complete Enrolled Agent Practice Exams 2013-2014 Edition $51.92 Use this book to prepare yourself for the EA exam offered during the May 1, 2013 to February 28, 2014 testing window. This workbook includes two full exams for each of the three parts of the EA exam: Individuals, Businesses, and Representation. All the answers are clearly explained in the answer section in the back of the book. Using the Prometric exam format, you can test yourself on the foll...

The Legal Answer Book for Private Foundations (Wiley Nonprofit Law, Finance and Management Series) $52.48 A must-have guide that enables managers and trustees of private foundations, as well as their lawyers and accountants, to successfully navigate today's increasingly complex tax laws and reporting requirementsPrivate foundations are the most regulated of nonprofit organizations. Burdened with laws written over thirty years ago, which have become more complex and intricate, private foundations are f...

The complexities of Roth IRA conversions

Roth conversions don't make sense for everyone. But with new rules in 2010, it's wise to run the numbers.