The Tax Questions Blog

Archive for August, 2009

Question: dont understand my tax code on my second job?

Iv currently got 2 jobs. My first job, i work 16 hours per week. With regards to my second job its a casual job and am called to work "as and when". I could work 2 hours one week then not work till the next month for maybe 10 hours per week. I have just had my payslip from my second job which i earned 111.00 pound and was taxed 22.00pound which i expected but my tax code says BR Cumulative. Now what does that mean?
Im not moaning that i have had to pay tax as like i say i expected too but i could"nt understand why i have not got a tax code. When i was employed with my second job i had to fill in a form and it did ask for a tax code but i left it blank as i was unsure. I didnt know whether i had to give the tax code from my first job which is 647L or id be automatically given one.
As you can tell im not all that clued up on this taxing business..lol.
Id apprehciate any advice given.
Thanks
Lisa

Answer: BR is the correct code for your second job. It means Basic Rate and basically means that you have no tax free allowance on the second job as you are having it on the first job (shown by your tax code on that of 647L). This is perfectly correct and means that you will be taxed at 22% on your earnings in the second job which would be the same as if you had earned them on top of the money in the first one. So you are no worse off. It is not true that you pay more or are worse off by having a second job.

The only case where you may be overpaying in tax on the second job would be if you earned under your tax free amount on the first one (£6475 per annum). If this were the case you can phone the Inland Revenue and ask them to divide you tax free amount between the two. If you're earning over that amount in the first one you do not need to worry as everything will be correct.

Hope I've made sense!

whatsup@uptownmag.com

Let us know about your happenings! Contact us at: , Fax: 953-4305. Mail to: What’s Up, c/o Uptown, 1355 Mountain Ave., Winnipeg, Man., R2X 3B6. No phone calls please. Deadline for submission to listings is Monday at 9 am. Listings are free – but placement cannot be guaranteed.

BANG VIDEO

Question: I want to know the service tax on food & beverages items in Delhi esp. in PIZZA HUT.?

They are charging 10% service tax.Is this applicable or not because in most restarunts service tax is 5%.Whether it is valid or may I sue them.

Answer: I am sure that no service tax is chargeable on supplies of food & beverages by Pizza Hut in Delhi. However, Food items attract 12.5% VAT and beverages are chargeable @ 20%. Nothing over and above is legally chargeable - you may give tips voluntarily.

Province set to pinch our pocketbooks

It's shaping up as the year to pay attention to your pocketbook in Ontario, with income tax cuts kicking in Jan. 1 to offset the controversial HST that starts July 1 and the justice system ready to crack down on bad drivers with dramatically higher fines.

Celente Predicts Revolution, Food Riots, Tax Rebellions By 2012

Question: TN: How long does it take Tax Refund to show up online to cover Child Support Arrearages? (1mo already)?

Ex filed his taxes thru TurboTax a month ago, and his refund was a tad over $3000. Well, He only received about $400 thru direct deposit 2 weeks ago, and the IRS took the other <$3000 and are supposed to be crediting it towards his arrearages, which are about $3600.00. My question, it's been 2 weeks, and nothing has shown up yet on the Child Support Website. How long does it take for the governemnt to process this payment, get it thru the Child Support System, and for it to show up to cover the arrearages...............
I've been told it's 6-8 weeks, is that right? What have your experiences been?

Answer: yea, I wouldn't get worked up about it - 6-8 sounds right-

About Politically-Motivated Universities

By Kwame Okoampa-Ahoofe, Jr., Ph.D.

What is SR&ED?

Question: When do the Bush tax cuts expire and does Obama plan to make his tax change before they expire?

Answer: Twenty-three months after the next president is inaugurated, the Bush tax cuts expire. Unless action is taken, in 2011 the economy will be walloped.

The five income tax brackets (10, 25, 28, 33 and 35 percent) will be increased by 50%, 12%, 10.7%, 9.1% and 13.1% percent, respectively, to 15, 28, 31, 36 and 39.6 percent. The child tax credit reverts to $500 from $1,000. The estate tax rate, which falls to zero in 2009, will snap back to a 60 percent maximum, and exemptions that have increased will decrease. The capital gains rate will rise, and the marriage penalty will be revived, as will the double taxation of dividends.

Furthermore, the alternative minimum tax was enacted by Democratic moralists in 1969 because 21 millionaires had legally avoided paying any income tax. The AMT, which allows almost no deductions, had one rate (24 percent) until 1993, when Democrats replaced it with two (26 percent and 28 percent). It has never been indexed for inflation and in the current tax year will hit almost one in five households -- 23 million of them.

Interesting, isn't it, that the group seeing the largest tax increase when the "tax cuts for the rich" expire during the next presidential term will be those making the least? And I wonder how many of those low income Americans removed from the tax rolls completely by the Bush "tax cuts for the rich" will find themselves once again required to pay income taxes with the return to Clinton-era tax policies?

Indiana lawmakers to take up property tax caps

The leader of the Indiana Senate has promised swift action in the Republican-ruled chamber on legislation dealing with property tax caps and unemployment insurance premiums when the General Assembly reconvenes Tuesday.

Obama's Incredible SHRINKING Tax Cuts! America, Are YOU Listening?

A salvage yard may not necessarily be considered a highly regarded business entity. However it provides a very useful and commendable service. These businesses create a convenient storage for cars that are no longer in service or that are unwanted. They also allow the recycling of parts from these vehicles and in many scenarios the complete automobile. These parts are taken out of the motor vehicles and then sold to manufacturers or private owners who may need these parts. While manufacturers will typically recondition the parts for resale, an individual may purchase these parts with the intention of replacing non-working parts in his or her privately owned automobile. Basically, a salvage yard lessens the wastage of parts and provides a reasonable solution for unwanted vehicles.

Many salvage yards operate nationwide all having the ability to support the recycling of unused automobile parts. Currently, new and innovative methods help keep track of the inventory by using codes as a means of tagging and identifying each car. This coded information is then entered into a computer database. As a result, many of these salvage yards are linked by a network of multiple databases. Therefore a state like Delaware, which has many functioning salvage yards, is able to connect with many other states to aid searchers find the exact part(s) that they require. This system also conveniently decreases the time and energy that is often expended searching for automobile parts.

There are specific standards that presently dictate how these yards are operated. Most salvage yards that are used are licensed to be able to resell the parts that are removed from each motor vehicle. Delaware is no exception. Like many other states proper regulations are put in place to make certain that these salvage yards meet a predetermined standard. Finding a salvage yard for parts has become significantly easier with the introduction of the internet. Hopeful customers are now able to use search engines online to find salvage yards in the state.