Credit deflation and the reflation cycle to come (part 8)

[nirvana]

it's going back down now u cunt......I know but yeah, it's a battleground man........

[Frank Hovis]

6 minutes ago, invalid said:

 

 

While not intending to make this into a HMRC and tax thread, I will put this here as it's inline with the theme of reducing tax and starving the beast.

I've not been able to find a clear answer to the interaction (if any) between tax relief for VCTs and SIPPs. VCT's becoming more popular for those who are hitting on pensions limits @DurhamBorn

For example, you have an income tax bill of £3,000. You put £10,000 into a VCT and you get your £3,000 tax back, you have paid zero income tax - hat tip to @Frank Hovis

In the same tax year you put £15,000 into your SIPP and automatically get the 20% relief, i.e. £3,000.

It appears that the relief is doubled?

 

 

 

It is.

Though I'm not sure that it should be.

I had a couple of years of paying negative tax, i.e. receiving back more tax than I had paid, through doing just this and decided that it was a bad idea as one day HMRC might decide to start running checks, in which case I would be repaying it with interest.

It wasn't a huge amount involved and it's now gone six years past so I'm not worried about it and wouldn't do it again, though not working means I only put in that annual £3.6k or whatever to get the £720 back.

[Errol]

Still waiting for gold to dip. Would need drops of hundreds of pounds.

[jamtomorrow]

@Transistor Man what do you make of this?

150 days to 2 hours *sounds* like quite the game-changer, but how much of the overall time and cost of producing one of these pressure vessels is currently tied up in that "150 days"?

https://bnnbreaking.com/world/sheffield-forgemasters-revolutionizes-nuclear-power-with-electron-beam-welding

[honkydonkey]

21 minutes ago, Errol said:

Still waiting for gold to dip. Would need drops of hundreds of pounds.

Buy it in the ground on sale.

[AlfredTheLittle]

1 hour ago, invalid said:

 

 

While not intending to make this into a HMRC and tax thread, I will put this here as it's inline with the theme of reducing tax and starving the beast.

I've not been able to find a clear answer to the interaction (if any) between tax relief for VCTs and SIPPs. VCT's becoming more popular for those who are hitting on pensions limits @DurhamBorn

For example, you have an income tax bill of £3,000. You put £10,000 into a VCT and you get your £3,000 tax back, you have paid zero income tax - hat tip to @Frank Hovis

In the same tax year you put £15,000 into your SIPP and automatically get the 20% relief, i.e. £3,000.

It appears that the relief is doubled?

 

 

VCT reduces your tax by up to 30% of the investment. Pension contributions get tax relief so you're not taxed in the first place on money you put in your pension (or get the tax back if you've already paid it). They're different things. If you made enough pension contributions that you didn't have any tax due, you wouldn't get any VCT relief as there would be no tax to reduce. 

[invalid]

7 minutes ago, AlfredTheLittle said:

VCT reduces your tax by up to 30% of the investment. Pension contributions get tax relief so you're not taxed in the first place on money you put in your pension (or get the tax back if you've already paid it). They're different things. If you made enough pension contributions that you didn't have any tax due, you wouldn't get any VCT relief as there would be no tax to reduce. 

 

 

Pension contributions don't reduce your tax bill...

 

 

[Errol]

25 minutes ago, invalid said:

 

Pension contributions don't reduce your tax bill...

 

Salary sacrifice ones do.

[invalid]

3 minutes ago, Errol said:

Salary sacrifice ones do.

 

Yes, indeed they do, both income tax and national insurance (NI both for you and employer).

However, in my example I'm referring to employee/self employed contributions made into a SIPP which does not reduce your tax bill.

 

[Red Debt Redemption]

4 hours ago, MrXxxx said:

Can you two please take this up to the other forums...I come 'down' here to get away from the bitchyness, rudeness and expletives, knowing that I will get reasoned [and courteous] argument.

I'll give you bored..

 

[Funn3r]

6 hours ago, Errol said:

Insurance generally covers foreseen unforeseens.

I keep reading this as foreskins. Is there anything wrong with me? Asking for a friend.

[AlfredTheLittle]

32 minutes ago, invalid said:

 

Yes, indeed they do, both income tax and national insurance (NI both for you and employer).

However, in my example I'm referring to employee/self employed contributions made into a SIPP which does not reduce your tax bill.

 

It does if you're a higher rate taxpayer. The pension scheme adds basic rate tax to your contribution, so basic rate tax relief  doesn't reduce your tax bill as it's already gone into your pension, but contributions will reduce your tax if you're a higher rate taxpayer.

[Democorruptcy]

3 minutes ago, AlfredTheLittle said:

It does if you're a higher rate taxpayer. The pension scheme adds basic rate tax to your contribution, so basic rate tax relief  doesn't reduce your tax bill as it's already gone into your pension, but contributions will reduce your tax if you're a higher rate taxpayer.

My head hurts.

[invalid]

3 minutes ago, AlfredTheLittle said:

It does if you're a higher rate taxpayer. The pension scheme adds basic rate tax to your contribution, so basic rate tax relief  doesn't reduce your tax bill as it's already gone into your pension, but contributions will reduce your tax if you're a higher rate taxpayer.

 

Yes, agreed, but again my example was for basic rate.

Anyway, I'm happy that the question has been answered and that the tax relief is doubled.

 

[Plan-b]

The UKs Credit Rating may get a haircut. It turns out not everyone thinks that giving massive amounts of money you don't have to people that didn't earn it or deserve it is a good idea.

https://www.reuters.com/world/uk/fitch-fires-credit-rating-warning-shot-across-uks-bows-2024-02-12/

Edited February 13 by Plan-b

[Transistor Man]

2 hours ago, jamtomorrow said:

150 days to 2 hours *sounds* like quite the game-changer, but how much of the overall time and cost of producing one of these pressure vessels is currently tied up in that "150 days"?

It’s impossible to know what these press- releases mean. 2 hours?

The pressure vessel is certainly the critical component. A conventional PWR is made from forged rings, welded together. Not many places can do it. Japan, South Korea, France. 

Why would we (MOD) be announcing something of (on the face of it) such strategic value to the world? 

[Plan-b]

12 minutes ago, Transistor Man said:

It’s impossible to know what these press- releases mean. 2 hours?

The pressure vessel is certainly the critical component. A conventional PWR is made from forged rings, welded together. Not many places can do it. Japan, South Korea, France. 

Why would we (MOD) be announcing something of (on the face of it) such strategic value to the world? 

Why Indeed. Perhaps a hostile takeover by say an American mega cap institution is going to make somebody extremely rich and leave the UK as an even more hollowed out asset stripped former global power than it already is.

Or am I being overly cynical..

[Bear Hug]

38 minutes ago, AlfredTheLittle said:

It does if you're a higher rate taxpayer. The pension scheme adds basic rate tax to your contribution, so basic rate tax relief  doesn't reduce your tax bill as it's already gone into your pension, but contributions will reduce your tax if you're a higher rate taxpayer.

I thought you can claim it back on tax return but I don't know much about it. 

[Kendo]

Ouch! GDXJ down by 7% today - nearly touching last year’s low. Another day like today and it’ll be hitting the Sep 22 low.

[invalid]

1 minute ago, Bear Hug said:

I thought you can claim it back on tax return but I don't know much about it. 

 

You can claim back the additional 20% via tax return, for the first £10k. After that you have to contact HMRC, not sure if that means you can claim above that or not.

 

[Long time lurking]

I have not got a clue if this is correct ?

 

[Transistor Man]

11 minutes ago, Plan-b said:

Why Indeed. Perhaps a hostile takeover by say an American mega cap institution is going to make somebody extremely rich and leave the UK as an even more hollowed out asset stripped former global power than it already is.

Or am I being overly cynical..

It’s been nationalised and put under the MOD, partially to stop that happening. But don’t rule anything out. 

[nirvana]

7 minutes ago, Kendo said:

Ouch! GDXJ down by 7% today - nearly touching last year’s low. Another day like today and it’ll be hitting the Sep 22 low.

i remembered the website this time lol

dunno what this looked like before CPI today but that's means >50% probability of rates remaining unchanged until June now.....if I'm reading it right.....

equals USD strength......n'est ce pas

[Plan-b]

8 minutes ago, Transistor Man said:

It’s been nationalised and put under the MOD, partially to stop that happening. But don’t rule anything out. 

Cheers. I feel much better knowing that the UK Gov are in control and will be doing their usual best in looking after the interests of the country and it's citizens. 

Edited February 13 by Plan-b

[nirvana]

8 minutes ago, Plan-b said:

Cheers. I feel much better knowing that the UK Gov are in control and will be doing their usual best in looking after the interests of the country and it's citizens. 

Sheffield used to be a nice place to live......and they had the Leadmill, sister club to the Hacienda.....and loadsa nice ale......then they flooded it with gimmigrants and turned it into a shithole.......whole place needs nuking and washing down the plughole nowadays

edit: fuk me the Leadmill is still going.......time for some Arctic Monkeys methinks lol

 

Edited February 13 by nirvana