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9 Jun 2004, 21:09
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#1
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King of The Fat Boys
Join Date: Feb 2001
Location: UK
Posts: 3,332
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Death & Taxes
No death, just taxes.
A mate of mine was recently given £3,000 from his new employer as a relocation fee.
I'm pretty sure this money wasn't declared to the tax man by his employer since all he got was a cheque, not in his pay packet.
So, does he have to declare it? He's already banked it and stuck it in a high interest account. It was given to him in February, so last tax year (the tax year ends in April). I assume he can just declare it as part of last year's income and they'll charge him the income tax on it. But how likely is it that the Inland Revenue will find out about it if he never declares it?
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9 Jun 2004, 21:10
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#2
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Made of Twigs
Join Date: Jun 2003
Posts: 5,459
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Re: Death & Taxes
Probably just doubled now you've posted this
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9 Jun 2004, 21:19
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#3
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Lord Denning
Join Date: Feb 2003
Location: City of London
Posts: 2,548
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Re: Death & Taxes
The Inland Revenue knows all and sees all.
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Please bear in mind when reading the above post that I am always right.
Quote:
Originally Posted by Marilyn Manson
He was crowned in York Cathedral as 'Expert in the West' by Pope Urban III in 1186.
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9 Jun 2004, 22:57
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#4
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King of The Fat Boys
Join Date: Feb 2001
Location: UK
Posts: 3,332
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Re: Death & Taxes
Quote:
Originally Posted by Proteus
The Inland Revenue knows all and sees all.
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That's what I thought.
But now I'm think maybe that's just propoganda propagated by "The Man".
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9 Jun 2004, 23:09
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#5
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Godfather
Join Date: May 2000
Location: England
Posts: 5,185
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Re: Death & Taxes
if they find out later down the line
he will be done for tax evasion
its much better to just declare it because you have no idea if one day he will have to open the books over something else and it will be seen.
then he will be buggered up the ass with a tree.
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9 Jun 2004, 23:15
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#6
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nomen est omen
Join Date: Apr 2002
Location: Bristol, UK
Posts: 1,095
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Re: Death & Taxes
Quote:
Originally Posted by ChubbyChecker
No death, just taxes.
A mate of mine was recently given £3,000 from his new employer as a relocation fee.
I'm pretty sure this money wasn't declared to the tax man by his employer since all he got was a cheque, not in his pay packet.
So, does he have to declare it? He's already banked it and stuck it in a high interest account. It was given to him in February, so last tax year (the tax year ends in April). I assume he can just declare it as part of last year's income and they'll charge him the income tax on it. But how likely is it that the Inland Revenue will find out about it if he never declares it?
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Don`t know what I`m talking about but; are relocation fees taxable? Can`t be your mates responsiblity. Is his new employer soon to go into receivership per chance?
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Me=Hans_Blix
Views expressed are those of the author and not of any company or organisation I am associated with. Electronic communication can be forged and the integrity of this message is not guaranteed.
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9 Jun 2004, 23:17
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#7
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IRC Lackey
Join Date: Aug 2001
Location: Somewhere in the dark and nasty regions...
Posts: 1,471
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Re: Death & Taxes
Quote:
Originally Posted by JammyJim
then he will be buggered up the ass with a tree.
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I knew the Department for Anal Forestry must have been for something...
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-Mushroom.
"The power of accurate observation is commonly called cynicism by those who have not got it."
George Bernard Shaw
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10 Jun 2004, 09:11
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#8
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King of The Fat Boys
Join Date: Feb 2001
Location: UK
Posts: 3,332
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Re: Death & Taxes
Quote:
Originally Posted by pyirt
are relocation fees taxable?
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Yes. They are money given to you as income, therefore you need to pay income tax. I'm not sure if you have to pay National Insurance as well, or Student Loan repayments. If you do though then my mate could be liable for up to 41% tax
Quote:
Originally Posted by pyirt
Can`t be your mates responsiblity. Is his new employer soon to go into receivership per chance?
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It is my mate's responsibility. His employer is responsible for making sure his pay packet is taxed correctly, but this wasn't part of his pay packet, he wasn't strictly speaking an employee when they gave him the money.
And no, they are not about to go into receivership, if they were then they wouldn't be chucking wads of cash at their employees.
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10 Jun 2004, 09:25
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#9
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cynic
Join Date: May 2000
Location: Bishop Auckland Co. Durham
Posts: 8,809
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Re: Death & Taxes
i dont think that you have to pay income tax on relocation allowances as they dont count as income as such...
but i would have to look it up
EDIT: looks like it sort of depends really
If your employer helps you to move home because of your job, any payments you receive, or any goods or services provided for you, are treated as part of your earnings for tax and NICs purposes. However, the first £8,000 of any help you get from your employer is exempt from tax and NICs as long as certain conditions are met.
the full form (which i would suggest he reads as i have only scanned it) can be found at
http://www.inlandrevenue.gov.uk/pdfs/ir134.htm
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lazy
Last edited by roadrunner_0; 10 Jun 2004 at 09:31.
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