Howdy, Stranger!
It looks like you're new here. If you want to get involved, click one of these buttons!
Quick Links
Transaction Type for Tax Relief
Hi,
In the UK, there are personal pension plans called SIPPs. These allow individuals and employers to contribute to a pension that is managed by the individual (i.e. just treated as an Account in PortfolioSlicer).
The benefit of this type of account is that there is no tax on the contributions. The employer contributions are paid into the SIPP directly and any individual/employee payments automatically get Tax Relief from the UK Government (i.e. get a rebate) to offset the income tax the individual has already paid on the cash being deposited into the SIPP
At the moment, I'm treating these rebates as a deposit in my SIPP in PortfolioSlicer and so it shows in all the reports as if I've paid the money in.
Given it hasn't "cost" me anything for these deposits, I'd ideally like them to not be included in the Deposits field in any of the reports.
What would be the best way of doing this...the TransType table has a big DO NOT EDIT on the top of it!? Could this be looked at in a similar way to the Withholding Tax in the US just with cash coming in rather than out?
Also, what would be the best way of showing this in terms of capital gains, profit etc? It shouldn't be included in these calcs but needs to be go somewhere otherwise the account balances won't add up...maybe could be a negative value in Withholding Tax Paid? Not sure what the impact would be
Thank you for this great tool
Many thanks
James
In the UK, there are personal pension plans called SIPPs. These allow individuals and employers to contribute to a pension that is managed by the individual (i.e. just treated as an Account in PortfolioSlicer).
The benefit of this type of account is that there is no tax on the contributions. The employer contributions are paid into the SIPP directly and any individual/employee payments automatically get Tax Relief from the UK Government (i.e. get a rebate) to offset the income tax the individual has already paid on the cash being deposited into the SIPP
At the moment, I'm treating these rebates as a deposit in my SIPP in PortfolioSlicer and so it shows in all the reports as if I've paid the money in.
Given it hasn't "cost" me anything for these deposits, I'd ideally like them to not be included in the Deposits field in any of the reports.
What would be the best way of doing this...the TransType table has a big DO NOT EDIT on the top of it!? Could this be looked at in a similar way to the Withholding Tax in the US just with cash coming in rather than out?
Also, what would be the best way of showing this in terms of capital gains, profit etc? It shouldn't be included in these calcs but needs to be go somewhere otherwise the account balances won't add up...maybe could be a negative value in Withholding Tax Paid? Not sure what the impact would be
Thank you for this great tool
Many thanks
James
Comments
Portfolio Slicer does not fully track tax implication, but you could do some customization if you need to:
For transactions that have a deposit amount of Tax relieve, add TransSubType value of "TaxRelieve".
Then in the Deposits worksheet add slicer for TransSubType, link it to all pivot tables that you want to control by that slicer (https://excelchamps.com/blog/link-slicer-to-multiple-pivot-tables/) and then if you select or unselect slicer value TaxRelieve, you will be able to include/exclude these values from your reports.
In Canada we have somewhat similar system for RRSP accounts (Registered Retirement Savings Program). But when we deposit money into this account, at the end of the year taxes are recalculated and often you would get back some refund for overpaid tax. But I still choose to track all deposits the same way. In Canada these accounts are taxed differently on withdrawal - you pay tax on all withrawal amount and not just on capital gain/dividends. I do not track investments in this account any differently.
Regarding withholding tax - again Portfolio Slicer does not reduce you profit just because some of your dividend payment money were withheld - that would not make sense. If I get 100$ dividends from USA stocks in open cash account, then 15$ of these money will be withheld. Portfolio Slicer still tracks this as 100$ of dividends and not 85$ of dividends, just your cash value will grow by 85$ and not 100$. If I get 100$ from Canadian stocks, no money are withheld from my account, but at the end of the year I will get tax forms (T3 and/or T5) that will tell me how much money I got from dividends and then tax software will calculate how much taxes I have to pay extra on dividends. So taxes are paid one way or another, but they do not affect stock performance.